Hill-Rom Reports Second Quarter Revenue Growth of 12.0 Percent to $375.2 Million and Adjusted Earnings Per Fully Diluted Share from Continuing Operations of $0.26, Unchanged from the ...( - Both capital sales and rental reven...),Health

- Both capital sales and rental revenue increase 12.0 percent demonstrating

balanced growth - Hill-Rom reporting for first time since separation; strategic investments

showing results - Management updates financial guidance based on year to date performance

and operational momentum

BATESVILLE, Ind., May 13 /PRNewswire-FirstCall/ -- Hill-Rom Holdings, Inc. (NYSE: HRC), reporting for the first time since the spin-off of the funeral services business, today announced unaudited financial results for its fiscal second quarter ended March 31, 2008. Results included revenue of $375.2 million, a $40.2 million or 12.0 percent increase from $335.0 million in the prior year comparable period. On a constant currency basis, revenue increased 9.0 percent.

Consolidated net income from continuing operations, which excludes results attributable to the funeral services business and certain other costs associated with the separation, was $9.4 million, or $0.15 per fully diluted share -- a decrease of 40.0 percent. On an as adjusted basis, fully diluted earnings per share from continuing operations for the second quarter of fiscal 2008 were $0.26 compared to the same amount per fully diluted share in 2007. Adjustments to the current year relate to a number of costs associated with the separation of the funeral services business, including non-recurring costs of separation, a stock modification charge to maintain the value of existing equity compensation, and a loss on the extinguishment of debt. The adjustment in the prior year related to antitrust litigation expenses.

On March 31, 2008, we completed the spin-off of our funeral services business opera
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