Press Release: February 29, 2000

WR Hambrecht + Co Initiates Coverage of Neoforma (NEOF) with Market Outperform and Target of $85

Firm positioned for leadership in B2B eCommerce medical supplies market

San Francisco, CA, February 29, 2000—

WR Hambrecht + Co, the online investment bank, today initiated research coverage on Neoforma (NEOF) with a Market Outperform rating and a price target of $85. WR Hambrecht + Co’s eHealth analyst Josh Fisher cited Neoforma’s first-mover advantage and compelling business model as well as the projected growth of the online medical supplies market as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"Neoforma, in our opinion, will emerge as a dominant B2B eCommerce company in the healthcare industry. The Company’s infomediary role should provide major economic benefits to all parties in the medical supplies industry, including product manufacturers, distributors, Group Purchasing Organizations, and healthcare providers," Fisher said.

Fisher projects Neoforma’s total revenues will reach $9.6 million in 2000 and $24.8 million in 2001, up from the 1999 total of $1 million.

Neoforma is a leading B2B eCommerce exchange for medical products. The Company’s services include facility planning, researching and purchasing supplies, and liquidating overstock or no longer used supplies and equipment.