Respironics Growth Fueled by Sleep Therapy Products

Pittsburgh, PA - January 25, 2000

Respironics, Inc. today announced financial results for the three months and six months ended December 31, 2000.

Net sales for the fiscal year's second quarter totaled a record $104.5 million, a 14 percent increase over the $91.7 million recorded for the same quarter last year. Domestic revenues increased 16 percent, including an increase of 19 percent in sales of domestic sleep therapy products and strong growth in sales of the company's oxygen systems. International sales, fueled by growth in both the home care and hospital markets, were up 8 percent. Strong performance in Asia Pacific and Latin America drove the increase in international sales, while European revenues were down slightly from the prior year.

For the six-month period ended December 31, 2000, net sales increased to $196.6 million, a 14 percent increase, with net income up 44 percent.

"Our strong performance this quarter is proof that we continue to make significant progress in the respiratory marketplace," stated James W. Liken, president and chief executive officer of Respironics. "We experienced strong demand across our home care product line, and we continue to build momentum in the marketplace with our combination of superior product technology and powerful programs which aid in the business growth of our provider customers. Currently, we offer the broadest and deepest line of respiratory products to the home care marketplace. Our respiratory expertise drove our success during the current quarter, and our strategy is to continue to leverage this position into the future," continued Mr. Liken.

"Opportunities continue to emerge for our products and programs in the international marketplace as well," commented Mr. Liken. "Respironics is participating in an effort to train and certify sleep technicians in Japan, a country in need of trained sleep professionals," continued Mr. Liken. This effort will be carried out through the Sleep and Respiratory Academy - Japan and will offer working technicians an opportunity to become certified sleep technicians by attending evening and weekend classes. "We believe that training these professionals will be key to penetrating the opportunities in the Japanese sleep disorders market," said Mr. Liken.

"In addition, during the month of December, Respironics released the new REMstar(R) Nova(TM) CPAP (Continuous Positive Airway Pressure) device to the German sleep market. We have received very positive feedback from the marketplace on the new REMstar Nova; this unit represents the company's first offering from our new technology platform for sleep apnea units. The new platform will be the primary basis for the company's worldwide offering of sleep apnea products and is the company's most advanced technology to date for the sleep disordered breathing market," Mr. Liken added.

Respironics, a recognized resource in the medical device market, provides innovative products and unique programs to health care providers while helping them to grow and manage their business efficiently. The company's focus is on home care, hospital and international markets providing programs that manage sleep disordered breathing, chronic obstructive pulmonary disease, asthma, infant care and restrictive lung disorders. Globally positioned, the company employs nearly 1,900 individuals worldwide and has manufacturing facilities in several domestic and international locations. Further information on Respironics can be found on its website: www.respironics.com.