19 Healthcare Organizations Choose Neoforma

New Users Represent More Than $700 Million In Annual Medical Procurement

SAN JOSE, CA and IRVING, TX July 20, 2000 Neoforma.com, Inc. (NASDAQ: NEOF) and Novation, LLC today announced that 19 healthcare facilities have signed contracts to use the marketplace@Novation, powered by Neoforma, as their healthcare purchasing solution. The 19 facilities represent more than $700 million in annual medical procurement and have committed a minimum of 50% of their total procurement to the marketplace.

In less than one month, Neoforma and Novation have signed contracts with 13 members of VHA, Inc. and 6 members of University HealthSystems Consortium (UHC) to purchase through the Marketplace@Novation. Novation, the largest group purchasing organization (GPO) in the United States, is the supply chain management company of VHA and UHC. In May 2000, Neoforma signed an exclusive 10-year amended agreement to provide e-commerce procurement solutions for Novation. In conjunction with this agreement, the two companies established the Marketplace@Novation.

Neoforma's Services Delivery Group will begin rapidly integrating these facilities' existing information systems into the new Marketplace@Novation. Upon completion of this integration, these facilities will be able to utilize the Marketplace@Novation's contracting, procurement and supply chain solutions while using existing technology and preserving established trading relationships.

"These innovative healthcare facilities are on the forefront of technology in their industry. They are determined to reduce the complexity and costly inefficiencies existing in their supply chain, and they recognize the value of the broad range of Neoforma solutions developed to retool healthcare commerce," commented Bob Zollars, chairman, president and chief executive officer of Neoforma. "We are very excited to help these first-movers increase their productivity and cost savings."

The following healthcare organizations have signed multi-year contracts to procure through the Marketplace@Novation, powered by Neoforma:

"We've been using Neoforma's auction services for some time and we've been very impressed by their management team and the level of service we've received. Neoforma's integrated technology can support all of our procurement needs, from purchasing to reporting," commented Jeff Hillebrand, chief operating officer of Evanston Northwestern Healthcare, one of the first systems that will purchase through the Marketplace@Novation, powered by Neoforma. "We believe that Neoforma's leading technology solution truly addresses the inefficiencies in the healthcare supply chain and we want to address those internally as quickly as possible. We are confident that the strong implementation team at Neoforma can deliver the results we need quickly and efficiently."

"We believe that Neoforma's technology solutions are the way of the future and we are pleased to be one of the first healthcare organizations to implement this powerful new procurement tool," said Terry Turner, director of materials management at the University of Utah Hospitals and Clinics, one of the first facilities to be integrated into the Marketplace@Novation. "With our contract and pricing information updated in real time and access to global purchasing information and trends, we believe that Neoforma will make a significant difference in the levels of efficiency in our supply chain."

About Neoforma.com, Inc.

Neoforma is a leading provider of business-to-business e-commerce solutions to the global medical marketplace. Focused on transforming the inefficient and highly fragmented healthcare supply chain, the company provides an open, online marketplace that enables buyers to lower product-procurement costs, while giving suppliers a new, highly efficient direct marketing channel. Neoforma's comprehensive e-commerce solutions are focused on improving healthcare purchasing needs, from planning to procurement to liquidation. For more information, visit the company's Web site at www.neoforma.com.

About Novation

Novation, the supply company of VHA and UHC, two national healthcare alliances, is based in Irving, TX. Novation serves the purchasing needs of 6,500 healthcare organizations nationwide, the members and affiliates of VHA, UHC and HealthCare Purchasing Partners Intl., LLC (HPPI). The largest supply cost management organization in healthcare, Novation manages more than $14 billion in annual purchases for VHA, UHC and HPPI members. For more information on Novation, go to www.novationco.com.

This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the anticipated benefits of Neoforma's agreements with the healthcare organizations. There are a number of technological and business risks that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks and other risks are described in Neoforma.com's periodic reports filed with the SEC including its Form 10-K for the year ended December 31, 1999, its Form 10-Q for the quarter ended March 31, 2000 and its Proxy Statement, dated June 29, 2000, relating to the Novation transactions . Neoforma.com assumes no obligation to update the forward-looking information contained in this news release.


Neoforma Novation

Kali Coffman

Lynn Gentry

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