January 26, 2007

Look no further than the revenue growth of sleep product manufacturers to see evidence of the thriving sleep industry. Respironics Inc, Murrysville, Pa, achieved net sales for the second quarter totaling $288.7 million, up 12% over the $257.9 million achieved in the second quarter a year ago.

One of the main drivers of the company’s success came from the gains it posted in its diagnostics sector. The company’s Alice® 5 Sleep Diagnostics System posted $4.4 million of domestic revenues in the second quarter representing a 22% year-over-year growth. The company also saw increases in its international revenues and within its hospital group.

Further notable is that the increase in the company’s sleep therapy revenues was achieved during a quarter when it completed its planned transition to the new M-Series platform of positive airway pressure devices. “We completed the planned transition to our new family of sleep therapy products during our second quarter, and our M-series of devices is now fully launched,” said John Miclot, president and CEO. “During the quarter our global sleep therapy revenues increased by approximately 16% year-over-year while we completed the transition to the M-Series.”

Looking Ahead

In order to build on its success, Respironics is launching the My Life™ series of masks. OptiLife™, the first in the mask series, was designed to be the easiest-to-use interface for delivering positive airway therapy for the treatment of OSA.

“We have continued to increase our investment in research and development in the sleep therapy area, and we recently released our OptiLife mask, our newest patient interface offering,” Miclot said. “This new pillows-based mask seals easily and effectively, is very lightweight, and enhances patient comfort. We look forward to the full roll-out of this mask to both providers and sleep labs over the next several quarters.”

Regarding the company’s outlook for 2007, Respironics forecasts revenue expectations at approximately $1,175 million to $1,190 million.

More information about Respironics and its products can be found on the company’s Web site at www.respironics.com