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 News Release - March 30, 2009

KCI Announces Plans to Optimize Operations

SAN ANTONIO--(HSMN NewsFeed)--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.


Source: Kinetic Concepts

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