Hospira Announces Plans to Optimize Operations, Increase Shareholder Value

-- Company Launches "Project Fuel" to Improve Margins and Drive Growth --

LAKE FOREST, Ill., March 24 /PRNewswire-FirstCall/ -- Hospira, Inc. (NYSE:
HSP), a leading global specialty pharmaceutical and medication delivery
company, today announced details regarding Project Fuel, a multi-phased
initiative to improve the company's margins and fuel its growth. Project Fuel
will capitalize on the company's potential to increase shareholder value and
improve operational efficiency by optimizing its product line, evaluating
non-strategic assets and streamlining its organizational structure.

In conjunction with these actions, which are slated to occur over the next 24
months, Hospira expects to reduce its global workforce by approximately 10
percent and deliver annual cost savings of approximately $110 million to $140
million.

"To maximize our opportunities for growth and sustainable shareholder value,
Hospira is taking a number of important steps to simplify our business,
strengthen our financial position and establish a strong foundation for our
future," said Christopher B. Begley, chairman and chief executive officer,
Hospira. "By reducing costs and improving efficiencies, we can free up more
dollars to invest for profitable growth and shareholder returns. And with a
streamlined, focused organization, we will reduce complexity, improve
performance and be better positioned to advance our significant
opportunities."

Optimizing the product line
Hospira's global product line encompasses thousands of list numbers, or SKUs,
many of which represent multiple presentations of the same drug compound and
serve the same medical need. By simplifying presentation choices, Hospira can
better meet the needs of its customers with a focused, yet robust, portfolio.
In addition to improving inventory management and manufacturing efficiency,
Hospira expects the streamlined product line to produce indirect cost
reductions through associated decreases in functional support. Importantly,
customers will also realize enhanced service levels and value, while
continuing to benefit from product choice across the continuum of care.

Evaluating non-strategic assets
Hospira's Specialty Injectable Pharmaceuticals (SIP) and Medication Management
Systems (MMS) product lines have been established as key growth drivers,
delivering strong performance and providing significant opportunity for future
growth. As a result, the company is now able to turn its attention to
rationalizing non-strategic assets that detract from the company's overall
growth trajectory and margin expansion opportunities.

Streamlining the organizational structure
Evolving Hospira's organizational structure is another key step in optimizing
its performance and in continuing to ensure Hospira delivers on its global
growth promise. Hospira has identified, and is pursuing, significant
opportunities to improve efficiencies and performance in several functional
areas, including global procurement, finance and information technology.
Efforts will include de-layering the company's management structure,
consolidating certain functions and heightening the focus on process
improvement to reduce complexity and redundancy, accelerate decision making
and raise overall productivity.

Workforce impact
The net projected reduction associated with these collective actions
represents approximately 10 percent of the company's global workforce, with
the majority of reductions occurring in the next 12 months. Hospira will help
prepare employees for the transitions through the provision of assistance
packages.

"Every day our employees make valuable contributions to Hospira, our customers
and the patients we collectively serve," said Begley. "We understand the
impact these decisions have on our employees and their families, especially
during tough economic times. Our actions, while difficult, are designed to
benefit all of our stakeholders by ensuring a strong foundation for our
future."

Financial information
In connection with these actions, Hospira estimates it will incur total
pre-tax charges in the range of $140 million to $160 million, of which
approximately $90 million to $100 million will be incurred during 2009. The
total charges for the project include cash costs of approximately $120
million, primarily related to restructuring costs, including
employee-separation and other costs, as well as process optimization
implementation costs. Approximately $30 million of non-cash costs is related
to various potential asset write-downs. Hospira expects these actions will
deliver annualized pre-tax savings of approximately $8 million to $10 million
in 2009 and approximately $110 million to $140 million on an annualized
run-rate basis, which it expects to reach by the second quarter of 2011.

Webcast
A 30-minute conference call for investors and media will be held at 9 a.m.
Central time on Tuesday, March 24, 2009. A live webcast of the conference call
will be available at www.hospirainvestor.com. Listeners should log on
approximately 10 minutes in advance to ensure proper computer setup for
receiving the webcast. A replay will be available on the Hospira Web site for
30 days following the call.

About Hospira
Hospira, Inc. is a global specialty pharmaceutical and medication delivery
company dedicated to Advancing Wellness(TM). As the world leader in specialty
generic injectable pharmaceuticals, Hospira offers one of the broadest
portfolios of generic acute-care and oncology injectables, as well as
integrated infusion therapy and medication management solutions. Through its
products, Hospira helps improve the safety, cost and productivity of patient
care. The company is headquartered in Lake Forest, Ill., and has more than
14,000 employees. Learn more at www.hospira.com.

Private Securities Litigation Reform Act of 1995 -- A Caution Concerning
Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including projections of
certain measures of Hospira's results of operations, projections of certain
charges and expenses, and other statements regarding Hospira's goals and
strategy. Hospira cautions that these forward-looking statements are subject
to risks and uncertainties that may cause actual results to differ materially
from those indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect Hospira's
operations and may cause actual results to be materially different from
expectations include the risks, uncertainties and factors discussed under the
headings "Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Hospira's latest Annual Report on Form
10-K filed with the Securities and Exchange Commission, which is incorporated
by reference. Hospira undertakes no obligation to release publicly any
revisions to forward-looking statements as the result of subsequent events or
developments.

SOURCE Hospira, Inc.

Media, Stacey Eisen, +1-224-212-2276, or Financial Community, Karen King,
+1-224-212-2711, both of Hospira, Inc.