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SUNRISE MEDICAL ANNOUNCES TWO ACQUISITIONS AND ADJUSTS SECOND QUARTER EARNINGS EXPECTATIONS

 SUNRISE MEDICAL ANNOUNCES TWO ACQUISITIONS AND
 ADJUSTS SECOND QUARTER EARNINGS EXPECTATIONS
 TORRANCE, Calif., Jan. 3 /PRNewswire/ -- Sunrise Medical Inc. (NASDAQ: SNMD) announced today that it has signed a definitive contract to acquire Dufco Electronics Inc. of Cambria, Calif., and has closed the acquisition of Ted Hoyer and Company of Oshkosh, Wisc. Both product lines will be immediately integrated into existing Sunrise Medical operating divisions.
 Annual sales of the two businesses total $7 million, but only about $1 million of that would represent an incremental increase to Sunrise revenues since the company is already the exclusive U.S. distributor for Hoyer products and has been purchasing Dufco controllers for sale with some of its Quickie line of power wheelchairs. The aggregate purchase price will be approximately $5 million, with over half the price paid in Sunrise stock and the balance in cash and subordinated notes. It is expected that the primary financial impact of these acquisitions will be to improve Sunrise's operating margin, while also yielding a modest increase in earnings per share.
 Dufco Electronics is engaged in the manufacture of specialty electronics for power wheelchairs and is recognized as the industry leader in adaptive controls for the severely involved quadriplegic. Dufco's primary product, the Multimode (TM) Interface System, provides the disabled user with the ability to maneuver a power wheelchair through the movement of head, chin or hand, or by sipping and puffing through a plastic tube. Dufco sells its product line both through wheelchair manufacturers and directly to dealers for retrofitting to existing chairs. Quickie Designs, Sunrise Medical's custom wheelchair division, currently offers the Multimode specialty control system with its P300 power wheelchair. The acquisition of Dufco will give Quickie the in-house electronics capability to develop advanced, proprietary specialty controllers, further solidifying its power wheelchair product line. Dufco's two principal owners have agreed to sign three year employment agreements with Sunrise, focusing respectively on engineering and product management. The Dufco transaction is expected to be completed on Jan. 7, 1992.
 Ted Hoyer & Co. is a well known manufacturer of patient lifters and accessories. Hoyer manufactures a general lifter for transferring a patient from wheelchair to bed or car and also special lifters designed for bath tub, swimming pool and car top installations. The business also includes a steady revenue stream of replacement slings and other accessory items for the large existing population of Hoyer lifters. Sunrise Medical's Guardian Products division, which manufactures ambulatory and bath safety products, presently distributes Hoyer products in the United States.
 Commenting on these acquisitions, Richard H. Chandler, chairman and president of Sunrise Medical, said, "The Dufco acquisition broadens our electronics capability -- an important step in our becoming a fully integrated manufacturer of power wheelchairs. We already manufacture controllers in the United Kingdom, but this will move us from basic into specialty controllers and add that design and manufacturing know-how to our U.S. manufacturing operation. Dufco will give us the best designed, most reliable interface controls for the severely disabled end-user. Further, we expect the Dufco management team to continue to develop technological improvements in wheelchair controllers in the years ahead.
 "The purchase of the Hoyer line," Chandler continued, "will replace a distributor relationship with a proprietary Sunrise product line and will enhance manufacturing efficiencies, permitting us to sell Hoyer products internationally at competitive prices. This acquisition expands our product line and manufacturing capability in the area of patient handling equipment -- a category which spans the hospital, nursing home and homecare markets and fits well with other Guardian products. We intend to build upon Hoyer's manufacturing base for patient handling equipment in Oshkosh." Second Quarter Earnings Expectations Lowered; Full Year Outlook Remains Unchanged
 Sunrise Medical also announced Friday that second quarter earnings will most likely be lower than current analyst estimates of approximately $.35 per share. A range of $.28 to $.30 per share is now more likely based on lower than expected December sales. Quarterly sales growth is expected to be 9-10 percent, reflecting soft demand at Sunrise Medical Ltd. (United Kingdom) and in therapeutic foam mattress products, both to healthcare and consumer channels. Shipments of rehabilitation products in North America remained quite strong, with wheelchair sales continuing to grow at 20 percent and patient aids at 15 percent. The company expects to announce quarterly earnings on Jan. 23.
 "Our sales growth, while respectable, turned out to be below the mid-teens growth rate we were anticipating," Chandler said. "As a result, it now appears earnings could be at least $.05 below the consensus analysts' estimates for the second quarter. However, we remain comfortable with analysts' full-year earnings estimates of $1.70 to $1.75 per share. We expect our recovery group and U.K. subsidiary to rebound in the second half which is also much stronger seasonally across all of our businesses. The last half will also be aided by contributions from a number of previously announced new products which will begin shipping in the third quarter, along with earnings pick-ups from three recently announced acquisitions -- Dufco, Hoyer and Health Products Inc., announced in December."
 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- 1/3/92
 /CONTACT: Ted N. Tarbet, CFO, or Lisa Riordan, media, 310-328-8018, both of Sunrise Medical; or Susan Noonan of Noonan/Russo Communications, 212-979-9180, for Sunrise Medical/
 (SNMD) CO: Sunrise Medical Inc. ST: California IN: MTC SU: TNM


SE-DM -- LA010 -- 6623 01/03/92 17:47 EST
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