San Antonion, Texas - December 31, 2002
Kinetic Concepts, Inc. (“KCI”) today announced that it has settled its anti-trust lawsuit with Hillenbrand Industries, Inc. and Hill-Rom Company (together “Hillenbrand”). Under the settlement, Hillenbrand agreed to pay KCI up to $250 million. The parties released each other from all claims relating to the litigation. In connection with the settlement, the parties will ask the United States District Court for the Western District of Texas, San Antonio Division to dismiss the lawsuit with prejudice. Upon dismissal of the lawsuit by the court, Hillenbrand will pay KCI $175 million. Pursuant to the terms of the settlement agreement, Hillenbrand will pay to KCI an additional $75 million one year following the payment of the initial settlement amount, subject to certain conditions.
Kinetic Concepts, Inc. develops and markets innovative therapeutic healing systems that address skin breakdown, circulatory problems and pulmonary complications associated with patient immobility and chronic wounds. The Company’s healing systems include specialty beds, mattress replacement systems, negative pressure wound therapy and related medical devices. Kinetic Concepts serves hospitals, long-term care facilities and patients in home care settings both in the U.S. and abroad.