Approval of Air-Shields Acquisition Extends Draeger Medical Portfolio into U.S. Neonatal Market.

LUEBECK, Germany & BATESVILLE, Ind. -- Draeger Medical AG & Co. KGaA announced today that it has completed the legal takeover of the infant care business of Hill-Rom, Inc., which operated under the name Air-Shields.

The legal approval and the transfer of the Air-Shields business to Draeger Medical clear the way to begin operations as of today. Air-Shields, which produces warming beds, incubators and accessories, recorded revenues of more than $50 million (EUR 41 million) in 2003, over 50 percent of which came from the U.S. market. Founded in 1939, Air-Shields is a world market leader in the neonatal care sector. The company is based in Hatboro, Pennsylvania (USA), and employs more than 200 people.

As of July 1, a new division for perinatal care will be established in Hatboro, PA. Air-Shields will be completely integrated into Draeger Medical's processes by the end of the first quarter of 2005. For 2004, the company expects additional global revenue of around $25 million (EUR 20 million).

According to Dr. Wolfgang Reim, President and CEO of Draeger Medical, "The Air-Shields acquisition is a milestone in terms of expanding Draeger Medical's portfolio. We will gain access to the important U.S. neonatal market and can bring enhanced innovation into this clinical area. We will be able to offer customers comprehensive solutions combined with patient monitoring and ventilation for neonates. Clinical staff will benefit from these integrated CareArea(TM) solutions through increased quality of therapy and reductions in process costs."

Draeger Medical received the approval of the British Competition Commission to acquire Air-Shields business a few days ago, on June 21, 2004. The authorities in three other European countries had previously approved the acquisition. The British and Portuguese approvals were given under certain conditions. In Great Britain, among other things, the company is obliged to keep prices stable for three years for the warming therapy product range and to continue to offer the current warming therapy product and service range for the same period. In Portugal, conditions include the obligation to sell the company's joint warming therapy portfolio in parallel by an additional, independent sales channel for three years.

Draeger Medical is one of the world's leading manufacturers of medical "technology for life." As the largest division of Draegerwerk AG (founded in 1889), Draeger Medical AG & Co. KGaA is a 65:35 joint venture company between Draegerwerk AG and Siemens AG. The Company offers products, integrated systems and services throughout the entire patient care process in all CareAreas(TM) - Emergency Care, OR/Anesthesia, Critical Care, Perinatal Care and Home Care. With headquarters in Luebeck, Germany, Draeger Medical AG & Co. KGaA employed approximately 5,400 people worldwide throughout 2003, over 50 percent of whom work in Customer Sales & Services. R&D and production are located in Luebeck, Germany; Best, Netherlands; Telford, PA, and Danvers, MA, USA; and Shanghai, China. The Company has sales and service subsidiaries in more than 40 countries and is represented in more than 190. In fiscal year 2003 (= calendar year), the Company increased its net sales by around 8 percent to reach EUR 917,7 million (up from EUR 848,3 million), and posted an EBIT (before one-time joint venture expenses) of EUR 91,4 million in 2003 (up from EUR 76,6 million). Draeger Medical AG & Co. KGaA continues to outpace the market with a growth rate of around 7 percent per year. The Company increased its EBIT from EUR 9,1 million in 2000 to EUR 91,4 million in 2003, marking the first three years of its business turnaround. Draeger Medical AG & Co. KGaA provides innovative solutions that are the result of a close dialog with customers, more than a century of experience in the market, and continuous investment in R&D. The Company's goal is to not only improve the quality of patient care, but also clinical processes, in order to assist in health care cost savings. Additional information is available on the Company's Web site at www.draeger-medical.com.

Hillenbrand Industries Inc.

Hillenbrand, headquartered in Batesville, Indiana, is a publicly traded holding company for three major wholly owned businesses serving the funeral services and health care industries. Hill-Rom Company is a recognized manufacturer of equipment for the health care industry and a provider of associated services for wound, pulmonary and circulatory care. It is also a provider of medical equipment outsourcing and asset management services. Batesville Casket is a leading manufacturer and supplier of burial caskets, cremation products and related services to licensed funeral homes. On February 13, 2004, Hillenbrand announced a definitive agreement to sell Forethought to FFS Holdings, Inc. Forethought Financial Services is a leading provider of insurance and trust-based financial products and services for pre-planning funeral services.