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Hill-Rom and Encompass Group Form Joint Venture
Date:11/9/2009

stems, patient environment, and health IT products sold as original equipment or rented."

Encompass Group, through its ETSS business unit, has traditionally been focused on meeting the needs of customers who desire high quality and affordable surface replacement systems. Hill-Rom's traditional focus on patient support systems, with a significant emphasis on advanced therapeutic surfaces, has resulted in key innovations in pressure reduction and redistribution, micro-climate management, antimicrobial protection, and the integration of surfaces with the bed frame. This joint venture will combine a single-minded focus on customer replacement surfaces with industry leading platforms carrying the AccuMax®, MaxiFloat®, Hill-Rom® and Tempur-Pedic® brands.

Encompass TSS will become the exclusive distributor of all but the most complex of Hill-Rom's capital surfaces in the after-market replacement segment in North America Acute Care. It is also expected that the joint venture will serve as the primary distribution channel for surface replacement products that Hill-Rom develops in the future. Encompass TSS will remain in place as a key supplier for Hill-Rom for non-powered and powered air support surfaces that are sold in combination with a new bed frame. The new company will continue to operate with headquarters at its current location in Pasadena, California, and the sales force will be expanded.

"This joint venture establishes a new company with the product breadth, channel depth, and intense customer focus needed to provide unparalleled performance for our customers," said Mike Spurlock, chief executive officer of Encompass Group. "We see this as a win for both companies and for all of our customers."

The new company was formed on November 9, 2009 and includes all the assets of Encompass Therapeutic Support Systems (ETSS), a division of Encompass. It will be held jointly with 60 percent owned by Hill
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