<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                    FORM 10-Q

                  (MARK ONE)

                  /X/    Quarterly Report Pursuant to Section 13 or 15(d) of
                         the Securities Exchange Act of 1934

                  For the quarterly period ended MARCH 31, 2000 or

                  / /    Transition Report Pursuant to Section 13 or 15(d) of
                         the Securities Exchange Act of 1934

                  For the transition period from ___________ to ___________

Commission File Number:                        33-26398
                          -----------------------------------------------------

                              ALARIS MEDICAL, INC.
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                   13-3492624
-----------------------------------        ------------------------------------
   (State or other jurisdiction            (I.R.S. Employer Identification No.)
 of incorporation or organization)

                   10221 Wateridge Circle, San Diego, CA 92121
-------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (858) 458-7000
-------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

-------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes: /X/ No: / /

On May 3, 2000 58,844,834 shares of Registrant's Common Stock were outstanding.


                                 Page 1 of 21
<PAGE>

                              ALARIS MEDICAL, INC.
-------------------------------------------------------------------------------


                                      INDEX

PART I.  FINANCIAL INFORMATION

    Item 1 - Financial Information:

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
        Condensed consolidated balance sheet at
        March 31, 2000 and December 31, 1999..................................................................     3

        Condensed consolidated statement of operations for
        the three months ended March 31, 2000 and 1999........................................................     4

        Condensed consolidated statement of cash flows for
        the three months ended March 31, 2000 and 1999........................................................     5

        Condensed consolidated statement of changes
        in stockholders' equity for the period from
        December 31, 1999 to March 31, 2000 ..................................................................     6

        Notes to the condensed consolidated financial statements..............................................     7


    Item 2 - Management's Discussion and Analysis of Financial
        Condition and Results of Operations...................................................................    11


    Item 3 - Quantitative and Qualitative Disclosures About  Market Risk......................................    18



PART II. OTHER INFORMATION

    Item 1 - Legal Proceedings...............................................................................     19

    Item 6 - Exhibits and Reports on Form 8-K................................................................     20
</TABLE>


                                       -2-
<PAGE>

                                   FORM 10 - Q
                                 PART 1 - ITEM 1
                              FINANCIAL INFORMATION

                              ALARIS MEDICAL, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEET
         (DOLLAR AND SHARE AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
-------------------------------------------------------------------------------

                                     ASSETS

<TABLE>
<CAPTION>
                                                                                           MARCH 31,       DECEMBER 31,
                                                                                             2000             1999
                                                                                         ----------        -----------
                                                                                         (UNAUDITED)
<S>                                                                                      <C>               <C>
Current assets:
    Cash................................................................................ $   22,180        $    23,559
    Receivables, net....................................................................     76,842             84,889
    Inventories.........................................................................     79,736             76,769
    Prepaid expenses and other current assets...........................................     26,762             25,086
                                                                                         ----------        -----------
        Total current assets............................................................    205,520            210,303

Net investment in sales-type leases, less current portion...............................     24,773             24,407
Property, plant and equipment, net......................................................     66,610             68,480
Other non-current assets................................................................     29,714             28,157
Intangible assets, net..................................................................    272,115            275,443
                                                                                         ----------        -----------

                                                                                         $  598,732        $   606,790
                                                                                         ==========        ===========

                                        LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Current portion of long-term debt................................................... $   16,169        $    13,769
    Accounts payable....................................................................     22,252             25,169
    Accrued expenses and other current liabilities......................................     45,769             44,606
                                                                                         ----------        -----------
        Total current liabilities.......................................................     84,190             83,544
                                                                                         ----------        -----------
Long-term debt..........................................................................    524,922            527,082
Other non-current liabilities...........................................................     17,157             17,115
                                                                                         ----------        -----------
        Total non-current liabilities...................................................    542,079            544,197
                                                                                         ----------        -----------

Contingent liabilities and commitments (Note 5)

Stockholders' equity:

    Common stock, authorized 75,000 shares at $.01 par value; issued 59,296
       shares and 59,295 shares at March 31, 2000 and December 31, 1999, respectively...        593                593
    Capital in excess of par value......................................................    148,992            148,991
    Accumulated deficit.................................................................   (169,391)          (164,195)
    Treasury stock......................................................................     (2,027)            (2,027)
    Accumulated other comprehensive loss................................................     (5,704)            (4,313)
                                                                                         ----------        -----------
        Total stockholders' equity......................................................    (27,537)           (20,951)
                                                                                         ----------        -----------

                                                                                         $  598,732        $   606,790
                                                                                         ==========        ===========
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
                             FINANCIAL STATEMENTS.


                                      -3-
<PAGE>

                              ALARIS MEDICAL, INC.
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(UNAUDITED)
         (DOLLAR AND SHARE AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                 THREE MONTHS
                                                                                                ENDED MARCH 31,
                                                                                        -------------------------------
                                                                                            2000                1999
                                                                                        -----------         -----------
<S>                                                                                     <C>                 <C>
Sales   ..............................................................................  $    91,277         $    93,436
Cost of sales.........................................................................       48,714              45,634
                                                                                        -----------         -----------

Gross margin..........................................................................       42,563              47,802
                                                                                        -----------         -----------

Selling and marketing expenses........................................................       19,474              19,917
General and administrative expenses...................................................       10,161              11,235
Research and development expenses.....................................................        6,331               6,047
Integration and other non-recurring charges...........................................            -               2,099
                                                                                        -----------         -----------

    Total operating expenses..........................................................       35,966              39,298
                                                                                        -----------         -----------

Lease interest income.................................................................        1,130               1,061
                                                                                        -----------         -----------

    Income from operations............................................................        7,727               9,565
                                                                                        -----------         -----------

Other income (expenses):
    Interest income...................................................................          223                 322
    Interest expense..................................................................      (14,315)            (13,653)
    Other, net........................................................................       (1,331)               (459)
                                                                                        -----------         -----------

Total other expense...................................................................      (15,423)            (13,790)
                                                                                        ------------        -----------

Loss before income taxes..............................................................       (7,696)             (4,225)
Benefit from income taxes.............................................................       (2,500)             (3,500)
                                                                                        -----------         -----------

Net loss..............................................................................  $    (5,196)        $      (725)
                                                                                        ===========         ===========

    Net loss per common share assuming no dilution....................................  $      (.09)        $      (.01)
                                                                                        ===========         ===========

    Net loss per common share assuming dilution ......................................  $      (.09)        $      (.01)
                                                                                        ===========         ===========

Weighted average common shares outstanding assuming no dilution.......................       58,845              58,777
                                                                                        ===========         ===========

Weighted average common shares outstanding assuming dilution..........................       58,845              58,777
                                                                                        ===========         ===========
</TABLE>

    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS

                                      -4-
<PAGE>

                              ALARIS MEDICAL, INC.

           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

                             (DOLLARS IN THOUSANDS)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                                           THREE MONTHS ENDED MARCH 31,
                                                                                          ------------------------------
                                                                                             2000                1999
                                                                                          ----------         -----------
<S>                                                                                       <C>                <C>
Net cash provided by operating activities..............................................   $    7,778         $    26,025
                                                                                          ----------         -----------

Cash flows from investing activities:
    Net capital expenditures...........................................................       (3,930)             (8,886)
    Patents, trademarks and other......................................................         (193)               (297)
    Payments for product licenses and distribution rights..............................       (1,065)               (800)
                                                                                          ----------         -----------

Net cash used in investing activities..................................................       (5,188)             (9,983)
                                                                                          ----------         -----------

Cash flows from financing activities:
    Principal payments on long-term debt and capital lease obligations.................       (3,287)             (5,993)
    Proceeds from exercise of stock options............................................            1                  26
    Deferred financing costs...........................................................         (650)                  -
                                                                                          ----------         -----------

Net cash used in financing activities..................................................       (3,936)             (5,967)
                                                                                          ----------         -----------

Effect of exchange rate changes on cash................................................          (33)                (63)
                                                                                          ----------         -----------

Net (decrease) increase in cash........................................................       (1,379)             10,012
Cash at beginning of period............................................................       23,559              29,500
                                                                                          ----------         -----------

Cash at end of period..................................................................   $   22,180         $    39,512
                                                                                          ==========         ===========
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS

                                      -5-
<PAGE>

                              ALARIS MEDICAL, INC.

                 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
                        STOCKHOLDERS' EQUITY (UNAUDITED)

                     (DOLLAR AND SHARE AMOUNTS IN THOUSANDS)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                                             ACCUMULATED
                                                                                                OTHER                  OTHER
                                                      CAPITAL IN                               COMPRE-                COMPRE-
                                     COMMON STOCK     EXCESS OF  ACCUMULATED  TREASURY STOCK   HENSIVE                HENSIVE
                                    SHARES   AMOUNT   PAR VALUE    DEFICIT    SHARES AMOUNT     LOSS      TOTAL        LOSS
                                    ------   ------   ---------    -------    ------ ------   --------    -----     ---------
<S>                                 <C>     <C>      <C>         <C>          <C>    <C>      <C>        <C>        <C>
Balance at December 31, 1999....... 59,295  $  593   $ 148,991   $ (164,195)    453  $(2,027)  $(4,313)  $(20,951)

Comprehensive loss
   Net loss for the period.........                                  (5,196)                              (5,196)    $(5,196)
   Equity adjustment from foreign
    currency translation...........                                                            (1,391)    (1,391)     (1,391)
                                                                                                                     -------
Comprehensive loss.................                                                                                  $(6,587)
                                                                                                                     =======
Exercise of stock options..........      1                   1                                                 1
                                    ------  ------   ---------   ----------   -----  ------    ------    -------

Balance at March 31, 2000.......... 59,296  $  593   $ 148,992   $ (169,391)    453  $(2,027)  $(5,704)  $(27,537)
                                    ======  ======   =========   ==========   =====  =======   =======   ========
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS

                                      -6-
<PAGE>

                              ALARIS MEDICAL, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

        (DOLLARS AND SHARE AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

--------------------------------------------------------------------------------

NOTE 1 -- BUSINESS AND STATEMENT OF ACCOUNTING POLICY

THE COMPANY:
ALARIS Medical, Inc. ("ALARIS Medical") operating through its consolidated
subsidiaries, designs, manufactures, distributes and services intravenous
infusion therapy and patient monitoring instruments and related disposables and
accessories, as well as telemedicine, cardiovascular and pacemaker monitoring
equipment. ALARIS Medical was formed by the merger of two pioneers in infusion
systems, IMED Corporation ("IMED") and IVAC Medical Systems, Inc. ("IVAC"), on
November 26, 1996. ALARIS Medical (formerly Advanced Medical, Inc.) was
incorporated on September 28, 1988 under the laws of the state of Delaware.
ALARIS Medical and its subsidiaries are collectively referred to as the
"Company."

STATEMENT OF ACCOUNTING POLICY:
The accompanying financial statements have been prepared by the Company without
audit pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to those rules and
regulations, although the Company believes that the disclosures herein are
adequate to make the information not misleading.

In the opinion of the Company, the accompanying financial statements contain all
adjustments, consisting of normal recurring adjustments, necessary for a fair
statement of the Company's financial position as of March 31, 2000, the results
of its operations for the three months ended March 31, 2000 and 1999, and its
cash flows for the three months ended March 31, 2000 and 1999.

USE OF ESTIMATES:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the period. Actual results could differ from those estimates.

NOTE 2 -- INVENTORIES

<TABLE>
<CAPTION>

Inventories comprise the following:                                                  MARCH 31,       DECEMBER 31,
                                                                                        2000             1999
                                                                                    -----------      -----------
<S>                                                                                 <C>              <C>
    Raw materials.................................................................  $    37,089      $    34,960
    Work-in-process...............................................................        5,626            6,156
    Finished goods................................................................       37,021           35,653
                                                                                    -----------      -----------
                                                                                    $    79,736      $    76,769
                                                                                    ===========      ===========
</TABLE>

                                      -7-
<PAGE>

NOTE 3 -- LOSS PER SHARE

<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED MARCH 31,
                                                          ------------------------------------------------------
                                                                    2000                           1999
                                                          ------------------------      ------------------------
                                                            BASIC        DILUTED           BASIC        DILUTED
                                                          ---------     ----------      ----------     ---------
<S>                                                       <C>           <C>             <C>            <C>
Net loss as reported...................................   $  (5,196)    $   (5,196)     $     (725)    $    (725)
                                                          =========     ==========      ==========     =========

Weighted average common shares outstanding
   (net of Treasury Shares)............................      58,845         58,845          58,777        58,777
                                                          =========     ==========      ==========     =========

Net loss per common share..............................   $    (.09)    $     (.09)     $     (.01)    $     (.01)
                                                          =========     ==========      ==========     ==========
</TABLE>

Net loss per common share assuming no dilution and dilution are the same for the
three months ended March 31, 2000 and March 31, 1999, as the Company experienced
a net loss. Options outstanding at March 31, 2000 and March 31, 1999 were
excluded due to their antidilutive nature. Had such options been included, the
weighted average shares would have increased by 304 and 1,153 for the three
months ended March 31, 2000 and March 31, 1999, respectively.

The Company's 7 1/4% Convertible Debentures (the "Convertible Debentures") were
not included in the calculation of diluted earnings per share in the three
months ended March 31, 2000 and March 31, 1999, as they are antidilutive. For
both the three months ended March 31, 2000 and March 31, 1999, the $16,152 of
Convertible Debentures, if converted at an exercise price of $18.14 per share,
would result in an increase of 890 common shares and an increase of $176, net of
taxes, to net income due to the reduction in interest expense.

NOTE 4 -- SEGMENT INFORMATION

The Company is organized primarily based on geographic location, with the United
States and Canada drug infusion and patient monitoring business representing the
North American Segment. All other international operations including Europe,
Asia, Australia and Latin America represent the International segment. The
acquisition of Instromedix in 1998 resulted in a third separate operating
segment.

The accounting policies of the segments are the same as those described in the
"Statement of Accounting Policy" (Note 1). Segment data does not include
intersegment revenues, or charges allocating corporate headquarters costs to
each of its operating segments. The Company evaluates the performance of its
segments and allocates resources to them based on operating income and adjusted
earnings before interest, taxes, depreciation, and amortization (EBITDA).

The table below presents information about reported segments for the three
months ended March 31:

<TABLE>
<CAPTION>
                                         NORTH                                            SHARED
                                        AMERICA       INTERNATIONAL    INSTROMEDIX      SERVICES(A)         TOTAL
                                        -------       -------------    -----------      -----------       ---------
<S>                                  <C>             <C>              <C>             <C>              <C>
2000
    Sales .........................  $    58,170     $    29,919      $     3,188     $         -      $    91,277
    Operating income (loss)........        7,270           4,689             (622)         (3,610)           7,727
    Adjusted EBITDA................       11,083           6,367             (149)         (1,199)          16,102

1999
    Sales .........................  $    57,336     $    32,062      $     4,038     $         -      $    93,436
    Operating income (loss)........        9,332           7,520           (2,853)         (4,434)           9,565
    Adjusted EBITDA................       12,648           8,970              343          (1,103)          20,858
</TABLE>

(A) Shared services includes amortization of intangibles and certain legal,
business development and executive costs.

                                      -8-
<PAGE>

Reconciliation of total segment adjusted EBITDA to consolidated loss before
taxes:

<TABLE>
<CAPTION>

                                                                                         2000              1999
                                                                                      -----------      -----------
<S>                                                                                   <C>              <C>
ADJUSTED EBITDA
    Total adjusted EBITDA...........................................................  $    16,102      $    20,858
    Depreciation and amortization...................................................       (8,375)          (9,194)
    Interest (net)..................................................................      (14,092)         (13,331)
    Integration and other non-recurring charges.....................................            -           (2,099)
    Other reconciling items.........................................................       (1,331)            (459)
                                                                                      -----------      -----------
       Consolidated loss before income taxes........................................  $    (7,696)     $    (4,225)
                                                                                      ===========      ===========
</TABLE>

NOTE 5 -- CONTINGENCIES AND LITIGATION

GOVERNMENT REGULATION

The United States Food and Drug Administration (the "FDA"), pursuant to the
Federal Food, Drug, and Cosmetic Act (the "FDC Act"), regulates the introduction
of medical devices into commerce, as well as testing manufacturing procedures,
labeling, adverse event reporting and record-keeping with respect to such
products. The process of obtaining market clearances from the FDA for new
products can be time-consuming and expensive and there can be no assurance that
such clearances will be granted or that FDA review will not involve delays
adversely affecting the marketing and sale of products. Enforcement of the FDC
Act depends heavily on administrative interpretation and there can be no
assurance that interpretations made by the FDA or other regulatory bodies will
not have a material adverse effect on the business, financial condition, results
of operations or cash flows. The FDA and state agencies routinely inspect the
Company to determine whether the Company is in compliance with various
requirements relating to manufacturing practices, testing, quality control,
complaint handling, medical device reporting and product labeling. Such
inspections can result in such agencies requiring the Company to take certain
corrective actions for non-complying conditions observed during the inspections.

A determination that the Company is in material violation of the FDC Act or such
FDA regulations could lead to the issuance of warning letters, imposition of
civil or criminal sanctions against the Company, its officers and employees,
including fines, recalls, repair, replacement or refund to the user of the cost
of such products and could result in the Company losing its ability to contract
with government agencies. In addition, if the FDA believes any of the Company's
products violate the law and present a potential health hazard, the FDA could
seek to detain and seize products, to require the Company to cease distribution
and to notify users to stop using the product. The FDA could also refuse to
issue or renew certificates to export the Company's products to foreign
countries. Such actions could also result in an inability of the Company to
obtain additional clearances or approvals to market its devices.

In October 1999, the Company received a warning letter from the FDA related to
earlier inspections. These FDA inspections noted several areas of non-compliance
with FDA regulatory requirements. The letter stated that to resolve this matter,
the Company is required until October 2001 to submit to the FDA periodic
certifications as to its state of compliance based on the outcome of inspections
conducted by outside regulatory consultants employed by the Company for this
purpose. In addition, product approvals, clearances and certificates for device
exports, including renewals, will not be provided until the FDA is satisfied
with the Company's corrective action. The FDA has informed the Company that the
corrective action plan it submitted in response to the warning letter is
adequate. The Company estimates that during the first quarter of 2000, Company
personnel devoted over 150,000 hours toward resolving these regulatory
compliance issues. In April 2000, as requested by the FDA, independent
regulatory experts

                                      -9-
<PAGE>

audited the Company's progress to date. Based on the audit, on April 29, 2000
the Company's president and chief executive officer, David L. Schlotterbeck,
certified to the FDA that, to the best of his knowledge, the Company has
initiated or completed all corrections called for in the report issued by the
independent consultant. ALARIS Medical is now awaiting the FDA's review of
its progress. The Company is not able to determine if or when the FDA will be
satisfied with the Company's actions, and the Company will continue to work
with the FDA to ensure resolution of this matter as quickly as possible.

Since 1995, the Company has on fourteen occasions initiated product recalls or
issued safety alerts regarding its products regulated by the FDA. In each case
this was done because the products were found not to meet the Company's
specifications. Of the fourteen recalls, three are closed and notice to that
effect has been received from the FDA. The Company has submitted to the FDA a
request for closure related to four of the recalls but has not received notice
back from the FDA. The remaining seven are still active. Additionally, the
Company has three active recalls related to its products manufactured and sold
outside the United States. None of the recalls materially interfered with the
Company's operations and all such affected product lines continued to be
marketed by the Company, with the exception of the Model 599 Series infusion
pump, for which the Company continues to sell administration sets and
replacement parts only.

The costs incurred related to the Company's recall activities have historically
been significant. These costs include labor and materials, as well as travel and
lodging for repair technicians. Estimates to complete are often quite difficult
to determine due to uncertainty surrounding how many affected units are still in
service and how many units customers will fix without Company assistance. Due to
these difficulties in estimating costs, it is possible that the actual costs to
complete each individual recall could differ significantly from management's
current estimates to complete. Although there can be no assurances, the Company
believes it has adequate reserves to cover the remaining estimated aggregate
costs related to these active recalls.

OTHER

The Company is also a defendant in various actions, claims, and legal
proceedings arising from its normal business operations. Management believes the
Company has meritorious defenses and intends to vigorously defend against all
allegations and claims. As the ultimate outcome of these matters is uncertain,
no contingent liabilities or provisions have been recorded in the accompanying
financial statements for such matters. However, in management's opinion, based
on discussions with legal counsel, liabilities arising from such matters, if
any, will not have a material adverse effect on the business, financial
condition, results of operations or cash flows.

                                      -10-
<PAGE>

                                 PART I - ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
------------------------------------------------------------------------------

GENERAL

ALARIS Medical is a holding company for ALARIS Medical Systems, Inc. ("ALARIS
Medical Systems"). ALARIS Medical also identifies and evaluates potential
acquisitions and investments, and performs various corporate functions. As a
holding company, ALARIS Medical currently has no revenues to fund its
operating and interest expense and relies on its existing cash, cash
generated from operations of ALARIS Medical Systems and external borrowings
to meet its obligations. Capitalized terms used but not defined herein have
the meaning ascribed to them in the Notes to the Condensed Consolidated
Financial Statements.

The Company is a leading provider of infusion systems and related
technologies to the United States hospital market, with the largest installed
base of pump delivery lines ("channels"). The Company is also a leader in the
international infusion systems market. Based on installed base of infusion
pumps, the Company has a number one or two market position in seven Western
European countries, the number three market position in three countries, the
largest installed base of infusion pumps in Australia and Canada and a
developing position in Latin America and Asia. The Company's infusion
systems, which are used to deliver one or more fluids, primarily
pharmaceuticals or nutritionals, to patients, consist of single and
multi-channel infusion pumps and dedicated and non-dedicated disposable
administration sets (i.e., plastic tubing and pump interfaces). In addition,
the Company is a leading provider of patient monitoring products that measure
and monitor temperature, pulse, pulse oximetry and blood pressure, with the
largest installed base of hospital thermometry systems in the United States.
Through its Instromedix division, the Company also designs, manufactures and
sells cardiology products such as arrhythmia-event recorders and pacemaker
monitors.

The Company sells a full range of products through a worldwide direct sales
force consisting of over 250 sales persons and through more than 150
distributors to over 5,000 hospitals worldwide. Sales by the Company's
International business unit represented 32.8% of the Company's total sales
for the three months ended March 31, 2000. For the three months ended March
31, 2000, the Company had sales of $91.3 million and Adjusted EBITDA of $16.1
million.

In recent years, the Company's results of operations have been affected by
the cost containment pressures applicable to health care providers.
Notwithstanding this, unit sales volume of the Company's disposable
administration sets increased in every year since 1993, primarily as a result
of the growth in its worldwide installed base of infusion pumps. However,
uncertainty remains with regard to future changes within the healthcare
industry. The trend towards managed care and economically motivated buyers in
the U.S. may result in continued pressure on selling prices of products and
compression on gross margins. The U.S. marketplace is increasingly
characterized by consolidation among healthcare providers and purchasers of
medical products. The Company's profitability is affected by the increasing
use of Group Purchasing Organizations ("GPOs") which are better able to
negotiate favorable pricing from providers of infusion systems, such as the
Company, and which insure compliance with exclusive buying arrangements for
their members. These buying arrangements, in certain situations, also may
result in the GPO requiring removal of the Company's existing infusion pumps.
The Company expects that such GPOs will become increasingly more common and
may have an adverse effect on the Company's future profitability. Finally,
the enactment of national health care reform or other legislation affecting
payment mechanisms

                                     -11-
<PAGE>

and health care delivery could affect the Company's future results of
operations. It is impossible to predict the extent to which the Company may
be affected by any such change in legislation.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, selected financial
information expressed as a percentage of sales:

<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED MARCH 31,
                                                                                    ----------------------------
                                                                                        2000             1999
                                                                                    -----------      -----------
<S>                                                                                 <C>              <C>
Sales.............................................................................        100.0%           100.0%
Cost of sales.....................................................................         53.4             48.8
                                                                                    -----------      -----------
Gross margin......................................................................         46.6%            51.2%
Selling and marketing expenses....................................................         21.3             21.3
General and administrative expenses...............................................         11.1             12.0
Research and development expenses.................................................          6.9              6.5
Integration and other non-recurring charges.......................................          -                2.2
Lease interest income.............................................................          1.2              1.1
                                                                                    -----------      -----------
Income from operations............................................................          8.5             10.3
Interest expense..................................................................        (15.7)           (14.6)
Other, net........................................................................         (1.2)             (.2)
                                                                                    -----------      -----------
Loss before income taxes..........................................................         (8.4)            (4.5)
Benefit from income taxes.........................................................         (2.7)            (3.7)
                                                                                    -----------      -----------
Net loss..........................................................................         (5.7)%            (.8)%
                                                                                    ===========      ===========
OTHER DATA:

     Adjusted EBITDA..............................................................         17.6%            22.3%
</TABLE>

<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED MARCH 31,
                                                                                    ----------------------------
                                                                                        2000            1999
                                                                                    -----------     -----------
<S>                                                                                 <C>             <C>
ADJUSTED EBITDA (1)...............................................................  $    16,102     $    20,858
Integration and other non-recurring charges.......................................            -          (2,099)
Depreciation and amortization (2).................................................       (8,375)         (9,194)
Interest income...................................................................          223             322
Interest expense..................................................................      (14,315)        (13,653)
Other, net........................................................................       (1,331)           (459)
Benefit from income taxes.........................................................        2,500           3,500
                                                                                    -----------     -----------

Net loss..........................................................................  $    (5,196)    $      (725)
                                                                                    ===========     ===========
-------------------------
</TABLE>

(1)    Adjusted EBITDA represents income from operations before restructuring,
       integration and other non-recurring charges, non-cash purchase accounting
       charges and depreciation and amortization. Adjusted EBITDA does not
       represent net income or cash flows from operations, as these terms are
       defined under generally accepted accounting principles, and should not be
       considered as an alternative to net income as an indicator of the
       Company's operating performance or to cash flows as a measure of
       liquidity. ALARIS Medical has included information concerning Adjusted
       EBITDA herein because it understands that such information is used by
       investors as one measure of an issuer's historical ability to service
       debt. Integration and other one-time non-recurring charges are excluded
       from Adjusted EBITDA as ALARIS Medical believes that the inclusion of
       these items would not be helpful to an investor's understanding of ALARIS

                                     -12-
<PAGE>

       Medical's ability to service debt. ALARIS Medical's computation of
       Adjusted EBITDA may not be comparable to similar titled measures of other
       companies.

(2)    Depreciation and amortization excludes amortization of debt discount and
       issuance costs included in interest expense.

The Company's sales results are reported consistent with the Company's three
strategic business units: North America, International, and Instromedix. The
following table summarizes sales to customers by each business unit.

<TABLE>
<CAPTION>

                                                                                          THREE MONTHS ENDED
                                                                                               MARCH 31,
                                                                                      --------------------------
                                                                                        2000              1999
                                                                                      ---------         --------
                                                                                         (DOLLARS IN MILLIONS)

<S>                                                                                   <C>               <C>
North America sales.............................................................      $    58.2         $   57.3
International sales.............................................................           29.9             32.1
Instromedix sales...............................................................            3.2              4.0
                                                                                      ---------         --------
     Total sales................................................................      $    91.3         $   93.4
                                                                                      =========         ========
</TABLE>

THREE MONTHS ENDED MARCH 31, 2000 COMPARED WITH THREE MONTHS ENDED MARCH 31,
1999

SALES
Sales decreased $2.2 million, or 2%, for the three months ended March 31,
2000 compared with the three months ended March 31, 1999. North America sales
increased $0.8 million, or 2%, compared with the first quarter of 1999. North
America drug infusion instrument revenue increased by approximately $2.9
million as instrument placements increased 46% over the unusually low first
quarter of 1999. The increase in North America instrument sales was
significantly offset by a decrease in sales of drug infusion disposable
administration sets. Disposable set revenue was lower than a year ago in
major markets worldwide. The Company estimates that about $3 million of its
dedicated disposable sets were purchased in 1999 as safety stock in
anticipation of possible Y2K problems at year-end. The Company believes that
most of this inventory was worked off in the first quarter of 2000.

The increase in total North America sales in the first quarter was more than
offset by a decrease in International sales of $2.1 million, or 7%, compared
with the first quarter of 1999. Sales decreased approximately $3.3 million in
the United Kingdom, the Company's largest international market. The Company
believes the UK decrease was due in part to the Y2K disposables issue
described above and in part to a limitation in governmental funds available
for healthcare expenditures in this quarter, which was the final quarter of
the UK's fiscal year. Additionally, foreign currency rate changes had an
adverse effect on International sales in the first quarter of 2000. The
majority of the Company's international sales are denominated in foreign
currency. Due to a stronger U.S. dollar in 2000 compared with the actual
foreign currency exchange rates in effect during 1999, translation of 2000
International sales were adversely impacted by $1.6 million, or 5%. Using
constant exchange rates, International sales decreased 2%.

Instromedix sales decreased $0.9 million during the quarter to $3.2 million
compared with a strong first quarter a year ago of $4.1 million.

GROSS MARGIN
Gross margin decreased $5.2 million, or 11%, during the three months ended
March 31, 2000, compared with the three months ended March 31, 1999. The
gross margin percentage decreased to 46.6% in the

                                     -13-
<PAGE>

first quarter of 2000, from 51.2% in the first quarter of 1999. The margin
percentage for the first quarter of 1999 was unusually high due to low
instrument placement during that period. Contributing to the margin decrease
in 2000 was the overall worldwide mix of increased instrument sales and lower
disposables sales, lower international sales which typically carry higher
margins than U.S. sales, as well as less favorable production costs in the
first quarter of 2000 compared with the same quarter last year.

SELLING AND MARKETING EXPENSES
Selling and marketing expenses decreased $0.4 million, or 2%, during the
three months ended March 31, 2000 compared with the three months ended March
31, 1999 due to lower sales volume and the effect of spending controls
initiated in the second quarter of last year. As a percentage of sales,
selling and marketing expenses remained constant at 21.3% for the first
quarter of 2000 and 1999.

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses decreased $1.1 million, or 10%, during
the three months ended March 31, 2000 compared with the three months ended
March 31, 1999. This decrease is primarily due to lower amortization expense
in the current period as a result of the write-off of certain Instromedix
intangible assets during the fourth quarter of 1999 and from other
intangibles becoming fully amortized during the prior year. These decreases
were partially offset by increased information technology costs for the
Company's new International operating system implemented in late 1999.

RESEARCH AND DEVELOPMENT EXPENSES
Research and development expenses increased approximately $0.3 million, or
5%, during the three months ended March 31, 2000 compared with the three
months ended March 31, 1999 primarily due to increased activities associated
with the later development stages of various International engineering
projects.

INTEGRATION AND OTHER NON-RECURRING CHARGES
In connection with the Instromedix acquisition, management, with the
assistance of consultants performed a review of the operating activities of
the acquired company in order to assess how best to integrate and leverage
the Instromedix operations with ALARIS Medical Systems. As a result of this
assessment, in June 1999, the Company consolidated the operations of
Instromedix into its San Diego, California facilities, allowing the Company
to leverage its existing infrastructure and manufacturing capacity in San
Diego. In connection with these relocation and integration activities, the
Company incurred $2.1 million in costs in the first quarter of 1999,
including severance and related termination benefits of $1.1 million,
retention bonuses of $0.2 million, asset dispositions of $0.4 million, lease
termination costs of $0.3 million and $0.1 million in other related costs.

INCOME FROM OPERATIONS
Income from operations decreased $1.8 million during the three months ended
March 31, 2000 compared with the three months ended March 31, 1999 primarily
due to lower sales and gross margins in the current year and other activities
discussed above.

ADJUSTED EBITDA
Adjusted EBITDA decreased $4.8 million during the three months ended March
31, 2000 compared with the three months ended March 31, 1999. As a percentage
of sales, Adjusted EBITDA decreased from 22.3%, or $20.9 million, during the
three months ended March 31, 1999 to 17.6%, or $16.1 million, during the
three months ended March 31, 2000 due to the reasons discussed above.
Adjusted EBITDA represents income from operations before restructuring,
integration and other non-recurring, non-cash purchase accounting charges and
depreciation and amortization. Adjusted EBITDA does not

                                     -14-
<PAGE>

represent net income or cash flows from operations, as these terms are
defined under generally accepted accounting principles, and should not be
considered as an alternative to net income as an indicator of the Company's
operating performance or to cash flows as a measure of liquidity. The Company
has included information concerning Adjusted EBITDA herein because it
understands that such information is used by investors as one measure of an
issuer's historical ability to service debt. Integration and other one-time
non-recurring charges are excluded from Adjusted EBITDA as the Company
believes that the inclusion of these items would not be helpful to an
investor's understanding of the Company's ability to service debt. The
Company's computation of Adjusted EBITDA may not be comparable to similar
titled measures of other companies.

INTEREST EXPENSE
Interest expense increased $0.7 million, or 5%, during the three months ended
March 31, 2000 compared with the three months ended March 31, 1999 primarily
due to increased interest accretion on the Company's 11 1/8% senior discount
notes as well as higher interest rates in 2000 on the Company's other
outstanding debt. (See Liquidity and Capital Resources.)

OTHER EXPENSE
Other expense increased approximately $0.9 million during the three months
ended March 31, 2000 compared with the three months ended March 31, 1999
primarily due to an increase in foreign currency transaction losses resulting
from the strengthening of the U.S. dollar in the first quarter of 2000
compared with the actual foreign currency exchange rates in effect during
1999.

LIQUIDITY AND CAPITAL RESOURCES

Management currently believes that sufficient cash will be available through
ALARIS Medical Systems, based upon current operations, to satisfy debt
service and other corporate expenses of ALARIS Medical in the foreseeable
future. In November 1996, ALARIS Medical Systems entered into a bank credit
facility consisting of term loans and a revolving credit facility (the
"Credit Facility"). The Credit Facility permits ALARIS Medical Systems to
transfer to ALARIS Medical up to $1.5 million annually to fund ALARIS
Medical's operating expenses and additional amounts sufficient to meet
interest payment requirements.

The Company expects to continue to meet its short-term and long-term
liquidity needs, including capital expenditure requirements with cash flow
from operations of ALARIS Medical Systems. In addition to operating expenses,
the Company's primary future use of funds, on a short-term and long-term
basis, will continue to be to fund capital expenditures and to pay debt
service on outstanding indebtedness.

At March 31, 2000, the Company's outstanding indebtedness was $541.1 million,
which includes $192.8 million of bank term debt under the Credit Facility,
$200.0 million of Senior Subordinated Notes due 2006 (the "Notes"), which
were issued in connection with the Merger and $131.8 million (including
accretion) of senior discount notes due 2008 ("Senior Discount Notes") which
were issued to fund the Instromedix acquisition in July 1998. The bank debt
bears interest at floating rates based, at the Company's option, on
Eurodollar or prime rates. During the second quarter of 1997, the Company
entered into an interest rate protection agreement through January, 2000,
covering approximately 50% of the Credit Facility term loan borrowings. Under
the interest rate protection agreement, such borrowings' interest rate was
effectively fixed. During the reporting period and prior to expiration of the
interest rate protection agreement, such agreement resulted in a weighted
average interest rate for all Credit Facility borrowings of 9.6%. During the
remainder of the reporting period subsequent to expiration of the interest
rate protection agreement and unless otherwise modified, all Credit Facility
borrowings are subject to

                                     -15-
<PAGE>

interest rate risk. A 10% increase (approximately one percentage point) in
the applicable interest rate would result in a $1.9 million annual increase
in interest expense. Included in total consolidated debt, at March 31, 2000,
ALARIS Medical had outstanding $16.2 million of 7 1/4% Convertible Debentures
(the "Convertible Debentures").

In July 1998, in connection with the Instromedix acquisition, the Company
amended the Credit Facility. The amendment provided for the banks' consent to
the Instromedix acquisition and increased the revolving credit facility to
$60.0 million. The amended Credit Facility also provided the Company an
additional $30.0 million under the Tranche D term debt. The Company used
$30.0 million term debt borrowing, along with approximately $2.0 million from
the revolving credit line, to fund the initial payments required upon closing
the Instromedix acquisition. Subsequent to closing the Instromedix
acquisition, ALARIS Medical completed the sale of $109.9 million of 11 1/8%
Senior Discount Notes, due 2008, receiving net proceeds of approximately
$106.3 million. Interest accruing on these notes is added to the outstanding
principal balance through July 31, 2003. Interest accruing subsequent to July
31, 2003 is payable in cash semi-annually in arrears on February 1 and August
1, commencing February 1, 2004. Upon receipt of the net proceeds from the
Senior Discount Notes, ALARIS Medical paid its remaining obligations of
approximately $22.7 million to the Instromedix shareholders and contributed
the remaining net proceeds of approximately $81.7 million to ALARIS Medical
Systems, as required under the amended Credit Facility. ALARIS Medical
Systems then repaid the amount outstanding under its revolving credit line.

As a result of the Company's significant indebtedness, the Company expects to
incur significant interest expense in future periods. The Company believes
that its existing cash and cash provided by operations will be sufficient to
meet its interest expense obligations.

Annual principal amortization of the Company's indebtedness is $10.5 million
for the remaining nine months of 2000 and $22.1 million and $45.1 million for
2001 and 2002, respectively.

The Convertible Debentures provide for semi-annual interest payments of
approximately $0.6 million and mature on January 15, 2002. The Notes and the
Credit Facility permit ALARIS Medical Systems to fund interest payments on
the Convertible Debentures and to make limited distributions to ALARIS
Medical to fund operating expenses and to pay income taxes; provided that,
with respect to the Credit Facility, there exists no default or event of
default under the Credit Facility. The Credit Facility requires the Company,
under most circumstances, to obtain consent from its bank group to allow
ALARIS Medical to repay the Convertible Debentures at maturity. The Notes
allow distributions to ALARIS Medical to fund the repayment of the
Convertible Debentures at maturity if certain performance measures are met.
Although there can be no assurances, the Company anticipates that its bank
group will consent to, and its operating performance will meet the
performance measures required to, repay the Convertible Debentures at
maturity.

During the three months ended March 31, 2000, the Company made cash payments
of approximately $0.4 million related to Instromedix integration costs which
were accrued at December 31, 1999. In June 1999, the Company consolidated the
operations of Instromedix into its San Diego, California facilities. In
connection with these relocation and integration activities, the Company
incurred nonrecurring charges of approximately $4.6 million before related
income tax benefits in 1999. Of this charge, approximately $0.2 million is
accrued at March 31, 2000.

                                     -16-

<PAGE>

The Company made capital expenditures of approximately $4 million during the
three months ended March 31, 2000 and anticipates additional capital
expenditures of approximately $26 million during the remainder of 2000.

In addition to routine capital expenditures, and in connection with prior
acquisitions, the Company made significant expenditures for the acquisition
of enterprise-wide information system software and hardware and the related
design, testing and implementation. During the fiscal years 1996 through 1999
the Company made combined capital and operating expenditures of approximately
$19.0 million related to the new enterprise-wide information system, and
expenditures of $0.4 million for the three months ended March 31, 2000. The
remaining significant phases of the project will be completed in 2000 with
anticipated additional expenditures of approximately $0.9 million.

The Company believes that, on both a short-term and long-term basis, based on
current levels of performance, it will generate cash flow from operations,
together with its existing cash, sufficient to fund its operations, make
planned capital expenditures and make principal amortization and interest
payments under the Credit Facility and interest payments on the 9 3/4% Notes.
However, on a long-term basis, the Company may not generate sufficient cash
flow from operations to repay the 9 3/4% Notes at maturity in the amount of
$200.0 million, to make scheduled payments on the Senior Discount Notes or to
repay the Senior Discount Notes in the amount of $189.0 million at maturity.
Accordingly, the Company may have to refinance the 9 3/4% Notes and the
Senior Discount Notes at or prior to maturity or sell assets or raise equity
capital to repay such debt. Based on current interest rates and debt
outstanding as of March 31, 2000, over the next twelve months, the Company is
required to make principal and interest payments under its Credit Facility in
the amount of $34.1 million and interest payments on the 9 3/4% Notes and the
Convertible Debentures in the amount of $19.5 million and $1.2 million,
respectively. In addition, the Company's ability to fund its operations, to
make planned capital expenditures and to make scheduled principal and
interest payments will be dependent on the Company's future operating
performance, which is itself dependent on a number of factors, many of which
the Company cannot control, including conditions affecting the Company's
foreign operations, prevailing economic conditions, availability of other
sources of liquidity, and financial, business, regulatory and other factors
affecting the Company's business and operations.

BACKLOG
The backlog of orders, believed to be firm, at March 31, 2000 and 1999 was
$9.7 million and $6.9 million, respectively.

FOREIGN OPERATIONS
The Company has significant foreign operations and, as a result, is subject
to various risks, including without limitation, foreign currency risks. The
Company has not entered into foreign currency contracts for purposes of
hedging or speculation. Due to changes in foreign currency exchange rates
during 2000 and 1999, primarily a strengthening of the U.S. dollar, the
Company's functional currency, against many European currencies, the Company
recognized a foreign currency transaction loss of approximately $1.3 million
and $0.4 million during the three months ended March 31, 2000 and 1999,
respectively. For the three months ended March 31, 2000 and 1999,
approximately 35% and 37% of the Company's sales and 31% and 29% of the
Company's operating expenses were denominated in currencies other than the
Company's functional currency, respectively. These foreign currencies are
primarily those of Western Europe, Canada and Australia. Additionally,
substantially all of the receivables and payables of the Company's foreign
subsidiaries are denominated in currencies other than the Company's
functional currency. As part of a comprehensive approach to risk management,
the Company is presently evaluating alternatives to address this risk.

                                     -17-
<PAGE>

HEALTH CARE REFORM
Heightened public awareness and concerns regarding the growth in overall
health care expenditures in the United States may result in the enactment of
legislation affecting payment mechanisms and health care delivery.
Legislation which imposes limits on the number and type of medical procedures
which may be performed or which has the effect of restricting a provider's
ability to select specific devices or products for use in administrating
medical care may adversely impact the demand for the Company's products. In
addition, legislation which imposes restrictions on the price which may be
charged for medical products may adversely affect the Company's results of
operations. It is not possible to predict the extent to which the Company or
the health care industry in general may be adversely affected by the
aforementioned in the future.

FORWARD-LOOKING STATEMENTS
Forward-Looking Statements in this report are made pursuant to the Safe
Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Persons reading this report are cautioned that such forward-looking
statements involve risks and uncertainties, including, without limitation,
the effect of legislative and regulatory changes effecting the health care
industry; the potential of increased levels of competition; technological
changes; the dependence of the Company upon the success of new products and
ongoing research and development efforts; restrictions contained in the
instruments governing the Company's indebtedness; the significant leverage to
which the Company is subject; and other matters referred to in this report.

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information is set forth under the subcaption "Liquidity and Capital
Resources" contained under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations" included in Item 2.

                                     -18-
<PAGE>

                                     PART II

                                OTHER INFORMATION
------------------------------------------------------------------------------

ITEM 1.  LEGAL PROCEEDINGS

See Note 5 to the Condensed Consolidated Financial Statements.

                                     -19-
<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

3.5               -- ALARIS Medical, Inc. By-Laws (as amended through April 17,
                     2000)

10.17             -- Change in Control Agreement, dated April 20, 2000 between
                     ALARIS Medical, Inc. and William C. Bopp. The Company has
                     entered into identical agreements with each of the
                     following:  David L. Schlotterbeck, Sally M. Grigoriev,
                     Joergen Lyngsgaard, Richard M. Mirando, L. James Runchey,
                     Anthony B. Semedo and Jake St. Philip.

27                -- Financial Data Schedule

                    -----------------------------------------

(b)   Reports on Form 8-K

None.

                                     -20-
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                                         ALARIS MEDICAL, INC.
                                                         --------------------
                                                                 (REGISTRANT)

    Date:   May 4, 2000               By:           /s/ WILLIAM C. BOPP
                                              -------------------------------
                                                       William C. Bopp
                            Senior Vice President and Chief Financial Officer

                                     -21-