Kaneb Services Information Technology Group Announces PACS Projects for The Veterans Administration and Texas Tech University Hospital.

DALLAS, May 8 /PRNewswire/ --

Kaneb Information Technologies, the information technology business group of Kaneb Services, Inc. (NYSE: KAB) today announced PACS projects for the Veterans Administration and Thomason Hospital, the university hospital for Texas Tech University in Lubbock, Texas.

The Veterans Administration has selected Kaneb Information Technologies subsidiary, InformaTech (ITI), to provide PACS consulting services that include performing a Clinical Services Assessment and Reegineering survey. ITI will develop, document and deliver a PACS request for proposal, assist the Veterans Administration with source selection, and provide transition consulting services for the PACS implementation at the VA hospitals in Miami and Oakland Park, Florida.

Thomason Hospital, affiliated with Texas Tech University, has selected ITI to provide a Clinical Services Assessment and Reengineering survey. ITI's engineering consulting services will support the hospital's evaluation of first phase PACS requirements to available technologies and vendors. The first phase PACS at Thomason Hospital will include teleradiology capabilities between Thomason Hospital's facility at Las Cruces, New Mexico, the main campus at Lubbock, and remote imaging centers.

"We are excited to have the Veterans Administration contract, which complements our prior and continuing work in telemedicine for the U.S. Army, the U.S. Navy and the U.S. Air Force," said John Barnes, Chairman, President and CEO of Kaneb Services, Inc. "Our experience in serving military hospital systems and our reputation for effective management of PACS implementations is clearly a benefit to our further work in the government sector as well as our work in the private healthcare sector. We are also very pleased to be selected to serve Thomason Hospital. University hospitals across the country are taking a leadership role in PACS implementation, and our capabilities in telemedicine and technology allow us to be a key contributor to the process of creating filmless environments in medicine."

ABOUT KANEB INFORMATION TECHNOLOGY GROUP

Kaneb Services' Information Technology Group is comprised of complementary businesses in niche, high-growth, technology-based markets. InformaTech, Inc. (ITI), is a provider of Internet and Intranet communications and applications network design and installation, bandwidth infrastructure implementation, secure network architecture and fiber cabling. InformaTech's medical technology services division specializes in telemedicine planning, design, implementation, application development and systems integration, including the design of Virtual Radiology Environments (VRE) that allow transmission of real-time digital images for diagnosis by medical specialists worldwide. Ellsworth Associates, Inc., is a leading provider of complex systems design and applications programming, and is well known for its expertise in creating Internet-based systems for state-of-the-art database applications. Another of Kaneb's technology subsidiaries coordinates high-volume communications among financial institutions, insurance companies and borrowers regarding the status of insurance coverage. For more information, visit www.informatech.net and www.eainet.com.

ABOUT KANEB SERVICES, INC.

Kaneb Services, Inc. provides technology-based and technical services worldwide. Headquartered in Dallas, Texas, Kaneb Services' operations include information technology companies and an international technical services firm. Kaneb Services, as general partner, also manages and operates the pipeline and terminal assets owned by Kaneb Pipe Line Partners, LP (NYSE: KPP), and operates a refined petroleum product marketing service. For more information, visit www.kaneb.com.