Dear business partner:

The market dynamics throughout the healthcare industry continue to change in 2009. The medical imaging industry was hit hard this past year by dramatic price increases in the cost of materials that forced manufacturers to implement price increases in various product categories. Moreover, for the distribution channel, the higher costs of doing business have negatively impacted the bottom line of many imaging distributors. In order to maintain our competitive edge, NHD continues to be vigilant of these market changes.

Currently, the imaging distribution sector appears to be experiencing the need for consolidation and further change. It is reported that one of your contracted imaging distributors is shutting down or relocating many of its distribution centers. During this unstable period, should any of your member facilities indicate the need for radiology service, equipment or supplies, please contact me or have your facility contact their nearest NHD Shareholder.

With this in mind, please note that NHD branches are solid and we foresee no changes at this time. We remain committed on serving your members’ imaging needs with over 75 distribution centers, 500 service technicians and 200 professional sales representatives. We stand ready to provide products and services to your entire membership and we will respond with immediate attention.

I look forward to our continued effort to collaborate and develop market strategies designed to deliver effective solutions and reduced supply chain costs to your members.
Sincerely,

Bill Mena
Vice President, Corporate Accounts
NHD, Inc.