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Hill-Rom Reports Third Quarter Revenue Growth of 11.7 Percent to $366.8 Million and Earnings Per Fully Diluted Share From Continuing Operations of $0.34, an Increase of 89 Percent From the Prior Year
Date:8/6/2008

continuing to bear fruit across the care continuum and around the world. Demand for our products remains robust as we strengthen our clinical and economic value proposition for customers. All of our reporting segments showed both capital sales and rental revenue growth."

"Our North America Acute Care segment revenue performance was again led by over 20 percent growth of our proprietary therapy rental products. Our International and Surgical segment revenue once again showed strong growth of 19.0 percent on a constant currency basis, reflecting market share gains - particularly in Europe. Finally, our North America Post-Acute Care segment saw double-digit growth in both capital sales and rental revenue," Soderberg continued.

Regarding the hospital capital spending environment, Soderberg commented, "Demand for our products during the third quarter remained firm and we saw no indications of softening trends in quotation, order, and sales metrics that would require our response."

Soderberg continued, "Like most manufacturing enterprises, Hill-Rom was subject to unexpectedly strong commodity price inflation impacting input and distribution costs during the quarter. We have intensified our efforts to reduce product and operational costs through manufacturing, sourcing, and expense management initiatives. Among the actions underway is a streamlining of the organization, which if approved by the Board, would result in a fourth quarter special charge. Despite inflationary trends, we remain committed to the earnings expansion goals we have discussed over the past two years."

"In light of our year-to-date performance, we are updating financial guidance from our May call to reflect increased sales and gross profit expectations. Operating income remains consistent with prior guidance -- in spite of the impact of inflation -- while adjusted earnings per share guidance increases primarily to reflect the benefits from discrete tax items realized to date,
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SOURCE Hill-Rom Holdings, Inc.
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