Inbound Supplier Freight Costs

2. Inbound Supplier Freight Costs $1.5B Industry Cost Cost Reduction Opportunity $500M Savings • No Barrier to Entry • Easy to Implement • No Cost or Fees

3. FDSI’s Inbound Supplier Freight Cost Reduction Solution • FDSI’s Program Stops your Suppliers from Profiting on Freight • FDSI Provides your Hospital with Deep Carrier Discounts • FDSI Reduces your Hospital’s Premium Air Service Costs • FDSI Provides Shipment Visibility Reporting Tools • FDSI Provides an End to End Solution

4. Experienced Transportation Professionals • Customer Oriented Technology Solutions • Multi-Modal Quality Carrier Network

5. FDSI Experienced Transportation Professionals • Transportation & Operations Specialists • Customer Service Coordinators • Information Technology Specialists • Freight Audit & Payment Department • Hospital On-Site Consulting • Dispatch

6. Visibility Manageability Measurability Accountability Cost Reduction = Optimum Savings FDSI Core Technology Provides

7. Supplier Shipment Consolidation Reduce Premium Air Transportation Costs Shipment Visibility Reporting Carrier Freight Audit & Payment Process 1,300+ Compliant Suppliers Hold Department Accountable for Freight Costs Establish Freight Cost Budget Carrier Least Cost Shipping Options

8. A Variety of Quality Carriers • Air, Ground, Ocean or Rail • Less Than Truck Load (LTL) • Full Truck Load (FTL) • Vanline • Flatbed • Riggers • Provide Deep Carrier Discounts

9. Over 1,350 Compliant Suppliers • Equals 60-70% of Inbound Supplier Freight Costs • FDSI’s Goal is 100% Compliance* • Aggressive Pursuit of Major Non-Compliant Suppliers *Abbott, Alcon Laboratories, Boston Scientific, Depuy Orthopedics, GE Medical, Johnson & Johnson, Ortho Clinical Diagnostics, U.S. Surgical

10. B Data is processed through automated filters that flag dups, gross errors, missing data for human review C Corrections are made and database is updated D Physical bills or EDI files are forwarded to auditors E Tariff/Pricing and PO numbers are checked for validity. Database is updated with correct PO/SO or revised charges. F GL Coding is performed G Bill is flagged in database as “OK to pay” and electronic approval process is performed H Weekly batches are Created and funds requested by FDSI I Client funds FDSI via wire or check and FDSI sends out carrier payments A Bills received by FDSI via mail or EDI

11. Monthly and YTD Visibility of all Incoming Shipments Provides: • Supplier Origin Shipping Locations by Carrier Zone • Identification of High Volume Suppliers that Ship Every Day • Breakout of Premium Air vs Ground Shipments • Identifies Opportunities to Reduce Premium Air Shipments • Supplier Shipment Consolidation Option • A Virtual Blueprint for Shipping Smarter

13. Reduce Premium Air Service Transportation Costs by 20-30% • 70% of Inbound Shipments Move via Airfreight Direct from the Manufacturer/Supplier • 50% of the Premium Air Service Shipments are not Consumed the Day they are Delivered • Selective Mode Shifting of Priority to Standard, Standard to 2nd Day and 2nd Day to Ground will Generate an Additional 20-30% Cost Savings

14. Service Type Shipments List Price FDSI Price % of Total Savings Priority 1150 $58,947.75 $44,988.49 53% $13,959.26 Std Overnight 223 9,903.16 7,541.78 9% 2,361.38 2nd Day 753 18,655.82 15,146.67 18% 3,509.15 Express Saver 231 7,189.29 6,352.54 8% 836.75 Ground 1161 9,163.94 8,551.31 10% 612.63 First Overnight 16 1,622.49 1,623.12 2% (0.63) Grand Total 3534 $105,482.45 $84,203.91 $29,654.63 $21,278.54 Summary by Service Type YTD For 01/01/06 - 06/08/06

15. Service Change Analysis vs

16. Track and Trace Shipments • Request Route Guides • Rate Shop/Submit Rate Requests • Look Up Freight Bills • Submit Claims • Review Claim Status • Create/Request Custom Reports or Queries

17. FDSI Manages Your Inbound Freight • Stops the Capital Equipment Suppliers from Profiting on your Inbound Freight • Reduces Inbound Capital Equipment Freight Costs by 25-50% • Establishes a Freight Cost Budget for the Project Manager • Schedules All Supplier’s Shipments to the Hospital Construction Site • Consolidates Supplier Shipments • Audits, GL Codes and Allocates to the Dept. Level All Supplier Inbound Freight Shipments • Provides the Project Manager with Monthly Freight Savings Reports

18. Estimated Costs: Radiology Lab • Total Construction • Capital Equipment • Inbound Supplier Freight • FDSI Compliant Supplier Match • Inbound Supplier Freight Savings $100M $30M $3M $1.5M $375K

19. Description FDSI HLS Cardinal O & M Program Costs/Fees No Yes Yes Unknown Number of Compliant Suppliers 1,350+ <600 <600 Unknown Years Providing Inbound Supplier Logistics Programs 21 <5 <5 <2 100% PO Matching, GL Coding, Department Level Allocation and Unlimited Reporting Services Yes Unknown Unknown Unknown Provides Summary and Detail Shipment Visibility Reporting and Consulting Services Yes No No No Provides Management of Capital Equipment Construction Projects Yes No No No Provides an Interactive Website for Shipment, Tracking and Tracing, Rate Comparisons, Rate Requests, Route Guides, Submitting Claims and More Yes No No No Provides Multiple Mode and Carrier Services Yes Unknown Unknown Unknown Provides On-Site Internal Delivery Consumption Analysis Yes No No No Cargo Claims Management Yes No No No Inbound Frt Cost Reduction Program Comparison