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SUNRISE MEDICAL ACQUIRES HEALTH PRODUCTS INC., AIR FLOATATION THERAPY PRODUCTS COMPANY

 SUNRISE MEDICAL ACQUIRES HEALTH PRODUCTS INC.,
 AIR FLOATATION THERAPY PRODUCTS COMPANY
 TORRANCE, Calif., Dec. 9 /PRNewswire/ -- Sunrise Medical Inc. (NASDAQ: SNMD) announced today that it has acquired Health Products Inc. (HPI) of Houston, for a combination of cash and stock. HPI is engaged in the manufacture, distribution, rental and service of Orthoderm Therapy Products, a line of air floatation therapy beds and retrofit mattress products. HPI sells and rents its products through a network of independent distributors and one company-owned outlet in Miami. Manufacturing facilities are located in Houston and Miami. Founded in 1987, HPI's annual revenues are approximately $3 million.
 The purchase price for HPI was not disclosed. Sunrise Medical did announce, however, that the earnings impact would be non- dilutive, and that the stock portion of the purchase price involved the issuance of approximately 64,000 shares of Sunrise stock. Those shares were a part of a shelf registration of 500,000 shares which was recently filed with the SEC to cover this and other acquisitions which Sunrise expects to make over the next few years.
 The Orthoderm product line consists of three main products: the Orthoderm CAT Bed, a low air loss therapeutic bed aimed at the hospital market which also comes with built-in scale for critically ill patients; the Orthoderm Therapy Bed, a simpler version designed for the home market; and the Orthoderm Convertible, a portable air suspension product which replaces a conventional mattress and converts any bed to low air loss therapy. All of these products use the same patented air manifold device which permits a highly cost effective design for air suspension therapy products. The Orthoderm Convertible in particular has gained rapid market acceptance since its introduction in 1989.
 The Orthoderm product line will be integrated immediately into Bio Clinic Corp., Sunrise Medical's division specializing in the manufacture and distribution of pressure reduction and relief devices. HPI's four principals have assumed management positions with Bio Clinic, focusing respectively on the design, manufacturing, marketing and distribution of air therapy products.
 "The Orthoderm product line complements perfectly Bio Clinic's existing range of pressure management products, giving us the broadest line of products of this type available from any manufacturer," stated Richard H. Chandler, chairman and president of Sunrise Medical Inc. "Our Bio Medx air suspension system was designed with sophisticated electronics aimed at the hospital market, whereas the Orthoderm Convertible uses a much simpler, lower cost design which is well suited for nursing homes and home care. Both products are portable and retrofit to any bed, regardless of the type or setting. The two Orthoderm low air loss bed products round out Bio Clinic's line for customers who insist on buying or renting an entire therapeutic bed. Finally, the HPI service center in Miami, which is very profitable, will give us our first experience with a company-owned distribution center for selling or renting the full line of Bio Clinic/Orthoderm products.
 "HPI's growth has been constrained by two factors," Chandler continued, "a shortage of capital to finance its growing fleet of rental units and the lack of a salesforce to call on healthcare institutions. Its distribution only covers about 20 percent of the United States, with little export sales. Sunrise Medical's strong balance sheet and Bio Clinic's nationwide salesforce specializing in pressure management products will correct these deficiencies immediately, providing a new stimulus to Orthoderm sales as distribution is extended nationally. Despite its small size, HPI has been an exceptionally profitable company."
 "HPI is a very timely acquisition for Sunrise Medical providing both strategic and financial benefits," explained Chandler. "It represents a key element in our accelerated thrust into air therapy products, clearly the modality of choice in the wound management market of the nineties. We want to position ourselves with the most cost effective products to meet each segment of the pressure management market, allowing health care providers to save significant dollars while maintaining the same quality of patient care."
 Sunrise Medical designs, manufactures and markets internationally medical products used in the rehabilitation and recovery phases of patient care. Products include custom manual and electric wheelchairs, ambulatory and bath safety aids, patient-room beds and furnishings, and therapeutic mattresses for the management of pressure sores. Sunrise products are designed to meet the special needs of three groups of people: the disabled, the elderly and the recovering patient.
 -0- 12/9/91 R
 /CONTACT: Ted N. Tarbet (financial), CFO, or Lisa Riordan (media), both of Sunrise Medical Inc., 310-328-8018; or Susan Noonan of Noonan/Russo Communications, 212-979-9180, for Sunrise Medical Inc./
 (SNMD) CO: Sunrise Medical Inc. ST: California IN: HEA SU: PDT


EH-DM -- LA010 -- 0599 12/09/91 13:43 EST
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Publication:PR Newswire
Date:Dec 9, 1991
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