Several authors have touted the p-median model as a plausible alternative to within-cluster sums of squares (i.e., K-means) partitioning. Purported advantages of the p-median model include the provision of “exemplars” as cluster centers, robustness with respect to outliers, and the accommodation of a diverse range of similarity data. We developed a new simulated annealing heuristic for the p-median problem and completed a thorough investigation of its computational performance. The salient findings from our experiments are that our new method substantially outperforms a previous implementation of simulated annealing and is competitive with the most effective metaheuristics for the p-median problem.