President's Message

Looking back on 2009 and what our expectations for the year were when we went into it, it is fair to say that the year went generally as we had hoped. We expected gradual and prudent growth from further financings, continued strong performance from LifeMark Health Limited Partnership ("LifeMark"), MEDIchair Ltd. "MEDIchair" and End of the Roll Carpet & Vinyl ("End of the Roll") and the start of a recovery from LMS Reinforcing Steel Group ("LMS") towards the end of the year. I am pleased to report that all of those expectations came to fruition in 2009.

All of the events in 2009 have positioned Alaris for success in 2010. Already, we have increased our dividends by 14.3% to an annualized rate of $0.96 per share. The dividend increase represented our first dividend increase as a public company and also the tremendous confidence that our management team and directors have in the state of our business. Given that all four of our private company partners ("Partners" or "Private Company Partners") are currently experiencing gains in their operations and given our unique visibility in our revenue streams, we felt that it was an appropriate time to increase our monthly dividend amount.

The addition of new partners is just as important as the success of our current partners and we are confident in our ability to grow Alaris by attracting these Partners. Our pipeline of potential transactions is deeper than it ever has been and the quality of the opportunities is better than we've seen in some time. While we will continue to be very cautious in partnering with new companies, we feel that the economic and investment climate is ideal for advancing our growth strategy.

We will continue to cling to our criteria of partnering with companies that have stable, steady cash flow streams, proven track records, moderate to low debt levels, low capital expenditure requirements, extremely strong management teams and businesses that our shareholders can expect to be strong for many decades to come.

After coming through one of the worst economic and financial crisis of all time, it is exciting to be planning for a year with the prospect of having tremendous shareholder support and a healthy private equity environment. I would like to thank all of our shareholders for their tremendous support over the course of 2009. Not only did you weather the economic storm with us but you also stepped up and kick-started our growth by supporting our successful bought deal in late October.

The management and directors of Alaris expect 2010 to be a year of growth. We expect that accretive new partnerships will create a larger, more diverse company that all of our shareholders will benefit from.

Steve King
President and Chief Executive Officer