Cap Gemini Ernst & Young Awarded Multi-Year Global IT Outsourcing Agreement By Welch Allyn

Contract to include management of entire IT operation and implementation of a new Enterprise System

Paris, FRANCE, February 6, 2002 - Welch Allyn, Inc., one of the world's leading manufacturers of innovative medical diagnostic solutions and patient monitoring systems, announced today that it has awarded Cap Gemini Ernst & Young US LLC, a global management and IT consulting company, a five-year outsourcing contract for its North American IT operations. Cap Gemini Ernst & Young assumed responsibility for Welch Allyn's entire IT function effective January 1, 2002. As part of the agreement, Cap Gemini Ernst & Young will implement a new Enterprise System and provide applications development and support of related business initiatives including CRM and e-business.

"In the past ten years Welch Allyn's business has quadrupled. We have made multiple acquisitions, become a more global company and begun to understand the opportunities afforded by a web-enabled enterprise system and related e-business applications," explained Peter H. Soderberg, Welch Allyn president and CEO. "We expect our IT operations to not only support our company's needs today but to lay the foundation for growth and achievement of competitive advantage in the future."

The relationship with Cap Gemini Ernst & Young will now allow the company to have access to emerging technologies and subject matter experts to help attain its global growth strategies.

"One of our key assets is our ability to help companies leverage emerging technologies to achieve efficiencies and deliver greater business value while focusing resources on their core business," says Terry Ozan, Cap Gemini Ernst & Young Americas CEO. "Adapting to new business realities requires constant evaluation of infrastructure systems and processes. Welch Allyn is an excellent example of a company that recognizes the need to update and align IT needs to support business goals and future growth."

"The strategic relationship with Cap Gemini Ernst & Young gives us access to incredible Enterprise System and CRM implementation, health care industry experience, and applications development and support experience," Soderberg added. "While I believe we are the first significant company in the medical device industry to completely outsource our IT function, the merits of this decision will be apparent to our business partners and customers in the years to come."

In addition to the aforementioned criteria, equally important was the company's unique ability to work within the framework of Welch Allyn's corporate culture. The Outsourcing Institute, a New York-based professional association and executive advisory network, acted as an advisor to Welch Allyn in the outsourcing provider selection process.

About Cap Gemini Ernst & Young

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. The organization employs about 57,000 people worldwide and reports global revenues of more than 8.5 billion euros (2000 pro forma).

About Welch Allyn, Inc.

Welch Allyn, Inc. was founded in 1915 and is today a leading manufacturer of innovative medical diagnostic equipment, patient monitoring systems, and miniature precision lamps. Headquartered in Skaneateles Falls, New York, USA, Welch Allyn employs more than 2,100 people and has numerous manufacturing, sales, and distribution facilities located throughout the world. Additional information on Welch Allyn and its products may be found at www.welchallyn.com.

Cap Gemini Ernst & Young Contact:
Mira Meghdessian
(212) 944-6565 x201
mira.meghdessian@us.cgeyc.com

Welch Allyn Contact:
Jacki Donati
(315) 685-4599
donatij@mail.welchallyn.com