FFF Enterprises Launches First Regulatory-compliant e-Pedigree Web-based System, Verifies Nation's Most Secure Supply Channel

February 7, 2006 Media Release

Distributor Provides First Electronic Drug Pedigree Website to Validate Security of Supply Channel for Hospitals, Pharmacies
and Physicians

TEMECULA, Calif. - The nation's largest distributor of human plasma products and influenza vaccines, FFF Enterprises Inc., announced today the pending launch of a revolutionary new drug safety net that leverages the power of the internet to track supply channel security for pharmaceuticals distributed by FFF to hospitals, clinics and physicians nationwide.

Verified Electronic Pedigree, or VEP, was originally launched in June 2004. FFF's newly redesigned VEP will allow healthcare providers to view and authenticate electronic drug pedigrees that are compliant with new regulatory requirements. Pedigrees are the legal documents that certify who has had possession of a medication from its manufacturer through the supply channel to the healthcare provider. VEP employs a sophisticated pharmaceutical pedigree security system, developed by FFF's partner SupplyScape Corporation, but it is as easy to use as the most popular search engines - and it does not increase cost to FFF customers.

The system will be hosted by Boston-based SupplyScape, which designed the VEP architecture to meet or exceed state and federal pedigree requirements. Using VEP, FFF's customers can comply months ahead of schedule with Florida's drug pedigree law, which will be effective July 2006 and will establish the most stringent e-pedigree requirements in the United States.

"FFF has long been committed to ensuring a safe, secure drug supply for our customers," said Patrick M. Schmidt, FFF CEO and president. "They must be confident that the biopharmaceuticals they purchase are safe for their patients. In fact, we expect our new VEP system to validate that FFF's unique business model of purchasing only from the manufacturer and distributing only to the healthcare provider is the single most effective way to secure the pharmaceutical supply channel, without the need for expensive technology and hardware. Limiting the number of transactions protects products - and patients - from the risks of secondary and gray market distributors, which is typically where counterfeiters enter the supply channel."

"We are very pleased to be able to provide VEP to our customers," Schmidt added. "It will allow them to document FFF's channel security and comply with the regulations well ahead of deadline."

Currently, 10 states have adopted drug pedigree regulations similar to those in Florida, and more than a dozen states are following suit. The Florida regulations were originally prompted by an alarming increase in the rate of counterfeit, tampered and diverted pharmaceutical drugs in the U.S. supply chain, an increase measured at 16 percent in 2004.

A Legacy of Commitment to Patient Safety

When FFF Enterprises entered the biopharmaceuticals marketplace in 1988, the distribution channel was rampant with unstable pricing, ill-managed shortages and unpredictable product allocation. In response, FFF has vigorously pursued its goal to provide Guaranteed Channel Integrity for every vial of every product the company handles.

Currently, 10 states have adopted drug pedigree regulations similar to those in Florida, and more than a dozen states are following suit. The Florida regulations were originally prompted by an alarming increase in the rate of counterfeit, tampered and diverted pharmaceutical drugs in the U.S. supply chain, an increase measured at 16 percent in 2004.

"By providing the first drug pedigree portal for its customers, FFF is showing the industry that certified pedigrees are achievable now by companies of all sizes and technical capabilities," said SupplyScape President Shabbir Dahod. "We are proud to manage the pedigree solution that is making the drug supply safer for the nation."

Furthermore, the FFF system demonstrates that Radio Frequency Identification (RFID), while a helpful technology for e-pedigree deployment, is not a necessary part of an in-compliance system.

"A lot of people believe that RFID is an essential component for e-pedigrees," said Schmidt, "but that is not necessarily true. VEP demonstrates that we can provide regulatory-compliant pedigrees without RFID. The combination of our unique business model and the ability to verify its security with VEP provides a high-impact, affordable solution that protects healthcare providers from new burdens and additional costs."

About FFF Enterprises
FFF Enterprises, founded in 1988, is a multidimensional healthcare company, delivering innovative solutions in biopharmaceutical management and distribution, health information management and consumer healthcare services. FFF is the nation's largest supplier of biopharmaceuticals, plasma products, vaccines and clinical trial drugs. Customers of FFF's four divisions include members of the leading U.S. acute care and non-acute care group purchasing organizations, pharmaceutical manufacturers, contract research organizations, managed healthcare and consumers.

FFF's unique distribution business model has institutionalized Guaranteed Channel Integrity, which reflects the company's commitment to purchase only from manufacturers and ship only to healthcare providers. This protects products from secondary and gray markets and promotes patient safety.

About SupplyScape
SupplyScape provides supply chain security software and expertise to safeguard the pharmaceutical supply chain. A leader in defining the open universal standards-based electronic pedigree solution for the pharmaceutical industry, SupplyScape provides electronic pedigree and drug identity authentication software and services. The company's executives enable pharmaceutical companies, wholesalers, distributors and pharmacies to derive sustainable business value from their investments in electronic pedigree and supply chain security. Click here for more information.