Dear Valued Customer:

In today’s challenging economic climate, it is important for us to be as efficient as possible to provide the best quality, lowest cost products available for our customers. To streamline our operations in late 2008 we initiated the separation of our Precept business into two distinct business units.

1. Precept Protective Apparel Business
2. UltraGard Surgical Drapes and Gowns

(See the UltraGard sale press release and the previous September 29 th, 2008 letter regarding separation of UltraGard and Precept Protective Apparel.)

On and effective April 20 th 2009 Precept Medical Products, Inc. (“Precept”) has sold its UltraGard™ Surgical Pack, Drape and OR Gown business assets (“UltraGard”) to Medline, Inc. of Mundelein, Illinois. With this sale of the UltraGard business assets, effective immediately, Medline will supply and bill you with respect to the UltraGard products. This sale of the surgical drapes and gown segment will have no impact on our Protective Apparel business, other than to allow us to focus all of our efforts and resources on our Precept Protective Apparel product line. Please refer to the table below summarizing the separate business units as of April 20, 2009 forward:

Our Precept Protective Apparel Business remains one of only a few independent disposable medical manufacturing companies focused on developing and marketing products made specifically to address various infection control issues of our hospital and alternate site customers. We look forward to continuing to service your needs on this product line. Thank you for your cooperation during this transition.

Yours truly,

Michael S. Boyd
President/COO