DeVilbiss Healthcare Changes North American 5 Liter Concentrator Warranty Policy

Somerset, PA. - December 15, 2010

DeVilbiss Healthcare (“DeVilbiss”) announced today that it is reducing the warranty on the 5 Liter Compact Concentrator 525 Series (525DS) from 5 years to 3 years on new products sold on or after January 4, 2011 in North America.

This policy change was precipitated by continual reimbursement reductions and regulatory changes that have resulted in increased oxygen concentrator price erosion in the industry.

“DeVilbiss could not sustain our current concentrator business without drastic changes,” Craig Haba, Vice President of Sales and Marketing for Respiratory Solutions of DeVilbiss Healthcare said. “The extreme changes in the oxygen industry over the last several years are affecting providers and manufacturers alike. We all have been forced to alter our businesses and processes.”

In addition to a reduction in warranty, DeVilbiss Healthcare will also institute a 5% price increase on selected service and repair parts used in the oxygen product line. This price increase on product sold on or after January 4, 2011is needed to offset component cost increases that have not been passed on to customers over the last several years.

“We understand the pressures that are being placed on our oxygen provider partners and we have done our best to absorb the steady incremental price increases. Unfortunately, we can’t keep that up if we want to maintain a sustainable business model in Oxygen. ”

DeVilbiss is currently exploring the opportunity to consolidate their warranty repair service process. Further information will be communicated in the near future regarding these changes.

About DeVilbiss Healthcare

DeVilbiss Healthcare is a world leader in the design, manufacture, and marketing of respiratory medical products that address the respiratory needs of patients in institutional and homecare settings. Primary product lines include sleep, pulmonary drug delivery, ambulatory oxygen solutions, and other respiratory devices. DeVilbiss products are manufactured in the United States, Europe and Asia and are distributed in more than 100 countries around the world. The Company is headquartered in Somerset, PA.