Related Party Transactions and Outside Related Director Information

I-Flow Corporation (IFLO)

4/5/2006 Proxy Information

In June 2001, we loaned Mr. Earhart $150,000 for personal use. The unsecured promissory note, which has not been amended at any time, bears interest at 5.58% per annum and is required to be repaid in full by June 2011. Payments are made by Mr. Earhart through bi-weekly payroll deductions. As of March 31, 2006, the outstanding amount of the note was approximately $89,000.

Dr. Tai is the founder of I-Flow Corporation, although he has never been employed there.