KCI Announces Plans to Optimize Operations

* Reuters is not responsible for the content in this press release.

Mon Mar 30, 2009 4:30pm EDT

SAN ANTONIO--(Business Wire)--
Kinetic Concepts, Inc. (NYSE:KCI) announced today cost reduction initiatives to
improve the company`s cost structure and maximize its growth potential. The
initiatives will enhance the company`s potential to increase shareholder value
and improve operational efficiency and effectiveness by streamlining its
organizational structure and workforce and evaluating expenditures. 

"During this global economic downturn, we believe it is prudent to further
streamline our organization and reduce expenses to enable our vision of
continued global expansion and investment in research and development," said
Catherine Burzik, KCI`s President and Chief Executive Officer. 

Streamlined Organizational Structure

As part of its multi-pronged cost reduction efforts, KCI has created a Global
Shared Services Team (GSST). A major undertaking designed to improve the
company`s overall productivity and performance, the GSST will help optimize
KCI`s resources through improved process design and organizational structure. 

"Ensuring the right processes, organization and technology initiatives are in
place will improve our efficiency and effectiveness," said Burzik. KCI estimates
the GSST initiatives will yield approximately $100 million in annualized savings
by the end of 2011. 

Workforce Impact

In addition to the above measures, KCI has done a thorough evaluation across all
levels of its workforce. As a result of this evaluation, and combined with
changes previously announced in the 4th quarter of 2008, KCI expects to reduce
its global workforce by approximately four percent, or approximately 300
employees. We anticipate that these activities will result in a first quarter
2009 charge of approximately $7-10 million before income taxes. Additional
details will be provided during our regularly scheduled first quarter earnings
conference call. 

"This decision was not made lightly and we view this as an essential step to
ensure our future success," said Burzik. "We are confident that our decision
will result in a global workforce that will leave us well-positioned with the
appropriate expertise and initiative to achieve our vision for all stakeholders
now and in the future." 

About KCI

Kinetic Concepts, Inc. is a leading global medical technology company devoted to
the discovery, development, manufacture and marketing of innovative,
high-technology therapies and products for the wound care, tissue regeneration
and therapeutic support system markets. Headquartered in San Antonio, Texas,
KCI's success spans more than three decades and can be traced to a history
deeply rooted in innovation and a passion for significantly improving the
healing - and the lives - of patients around the world. 

KCI's three primary businesses include: 

Advanced Wound Care - Includes KCI's proprietary Vacuum Assisted Closure, or
V.A.C. Therapy System, which has been clinically demonstrated to promote wound
healing through unique mechanisms of action while reducing the overall cost of
treating patients with complex wounds. 

Regenerative Medicine - Represented by KCI's LifeCell business and includes
tissue-based products for use in reconstructive, orthopedic and urogynecologic
surgical procedures to repair soft tissue defects. 

Therapeutic Support Systems - Includes specialty hospital beds, mattress
replacement systems and overlays designed to address pulmonary complications
associated with immobility, to reduce skin breakdown and assist caregivers in
the safe and dignified handling of patients of size. 

The company employs approximately 7,000 people and markets its products in more
than 20 countries. For more information about KCI, and how its products are
changing the practice of medicine, visit www.kci1.com. 

Forward-Looking Statements

This press release contains forward-looking statements regarding the expected
benefits and cost savings of the Company`s organizational changes.
Forward-looking statements may contain words such as believes, expects,
anticipates, estimates, projects, intends, should, seeks, future, continue, or
the negative of such terms, or other comparable terminology. Forward-looking
statements are subject to risks, uncertainties, assumptions and other factors
that are difficult to predict and that could cause actual results to vary
materially from those expressed in or indicated by them. Additional risks and
factors are identified in KCI's filings with the U.S. Securities Exchange
Commission (the SEC), including its Annual Report on Form 10-K for the fiscal
year ending December 31, 2008 which is available on the SEC's Web site at
http://www.sec.gov. KCI undertakes no obligation to revise or update any
forward-looking statement, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise. 



Kinetic Concepts, Inc., San Antonio
Investor Relations:
Adam Rodriguez, 210-255-6197
adam.rodriguez@kci1.com
or
Media Relations:
Jim Cravens, 210-255-6456
jim.cravens@kci1.com
or
Roger Bennett, +31-204-260-014
rbennett@kci-medical.com

Copyright Business Wire 2009

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