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KCI issues major contract update.

SAN ANTONIO, Texas--(BUSINESS WIRE)--Nov. 27, 1996--Kinetic Concepts, Inc. (NASDAQ:KNCI) announced today that the company has been advised by Premier Purchasing Partners, L.P. that its bid to be the primary supplier for the newly combined group has been awarded to another vendor.

Although the Premier Group today represents approximately 10% of KCI's revenue, it is expected that a portion of this revenue will be retained. Because KCI currently supplies approximately 30%-35% of Premier's business and facilities within the group are not committed to do business with the group's primary vendor, it is difficult to predict the ultimate effect of the new agreement on revenues and operating profits.

Raymond R. Hannigan, KCI's Chief Executive Officer stated, "We remain confident that the company will meet its overall growth expectations for 1997. Our track record in building and maintaining hospital relationships indicates that we will be able to aggressively compete for much of the group's business."

Kinetic Concepts develops and markets innovative therapeutic healing systems that address skin breakdown, circulatory problems, and pulmonary complications associated with patient immobility. The company's healing systems include specialty beds, mattress replacement systems, and related medical devices. Kinetic Concepts serves hospitals, long-term and home care settings both in the U.S. and abroad.

This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to, projections of future operating results, market penetration and the financial condition of the company. Certain risk factors that may impact the forward-looking statements set forth herein are detailed from time-to-time in the Company's Securities and Exchange Commission filings.

CONTACT: Kinetic Concepts, Inc., San Antonio

Bianca A. Rhodes, 210/524-9000
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Publication:Business Wire
Date:Nov 27, 1996
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