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Hill-Rom Reports First Quarter Revenue Growth of 3.0 Percent to $352 Million and Earnings Per Fully Diluted Share From Continuing Operations of $0.23, an Increase of 15.0 Percent From the Prior Year
Date:2/4/2009

itures. All this has led us to update our guidance and present a more cautious outlook for the rest of 2009."

Soderberg continued, "During these difficult times, however, we remain committed to implementing our multi-year strategy that calls for continued investments in new product development, global strengthening of our field sales and clinical support team, supply chain efficiencies and continuous improvement to expand our operating margins. Reflecting our cost control actions, operating expenses declined 3.6 percent after excluding $7.9 million of Liko operating costs."

Commenting on the integration of Liko operations, Soderberg stated, "Liko posted sales of $18.4 million, in line with expectations. Our customers are responding well to this latest addition to our patient safety solutions portfolio in the area of safe lifting and mobilization."

Other first quarter revenue highlights regarding Hill-Rom business segments include:

-- North America Acute Care. Hill-Rom North America Acute Care revenue declined $7.8 million, or 3.7 percent, to $203.5 million. Capital sales decreased 8.3 percent, or $12.6 million, primarily driven by decreases in our patient support systems and architectural products. Despite this negative trend, healthcare information technology showed growth in excess of 20 percent due to the recent launch of the all digital NaviCare (R) Nurse Call system.

Rental revenue increased by $4.8 million, or 8.3 percent, during the quarter, due to higher volumes from new product fleet investments in bariatric and wound care and the impact of strategic adjustments made to our sales channel implemented over the last fiscal year.

-- International and Surgical. Hill-Rom International and Surgical capital and rental revenue increased $15.4 million, or 18.4 percent, to $98.9 million, principally driven by the acquisition of Liko and stronger perform
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SOURCE Hill-Rom Holdings, Inc.
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