r3qtr20098k102109.htm

Exhibit 99.1

FOR MORE INFORMATION, CONTACT:

Investors:

Adam Rodriguez

Office: 210-255-6197

Wireless: 210-861-7969

adam.rodriguez@kci1.com

Media:

Kevin Belgrade

Office: 210-255-6232

Wireless: 210-216-1236

kevin.belgrade@kci1.com

KINETIC CONCEPTS REPORTS FINANCIAL RESULTS

FOR THIRD QUARTER AND FIRST NINE MONTHS OF 2009

Third Quarter Highlights

- Worldwide V.A.C. Therapy revenue of $360.6 million, up 2% on a constant currency basis

- North American V.A.C. Therapy revenue of $270.8 million, up 1% from the prior-year period on a constant currency basis

- Regenerative Medicine revenue of $71.8 million, up 17% from the prior-year period

- Therapeutic Support Systems revenue of $72.1 million, down 10% on a constant currency basis

- Diluted earnings per share of $0.91 on a reported basis, $1.08 on a non-GAAP basis adjusted for non-cash acquisition- related items

San Antonio, Texas, October 21, 2009 – Kinetic Concepts, Inc. (NYSE: KCI) today reported third quarter 2009 total revenue of $504.4 million, compared to $503.3 million reported for the third quarter of 2008. Total revenue for the first nine months of 2009 was $1.466 billion, up 6% from the prior-year period. Foreign currency exchange movements negatively impacted total revenue for the third quarter and first nine months of 2009 by approximately 1% and 3%, respectively, compared to the corresponding periods of the prior year.

Net earnings for the third quarter of 2009 were $64.6 million, or $0.91 per diluted share, compared to $53.9 million, or $0.75 per diluted share, for the third quarter of 2008, representing increases of 20% and 21%, respectively, from the prior-year periods.

“In the third quarter, we delivered revenue and earnings growth despite the impact of ongoing competitive and economic pressures,” said Catherine M. Burzik, President and Chief Executive Officer of KCI. “We also made progress in the quarter on several key strategic initiatives. We received regulatory approval for V.A.C.® Therapy in Japan, launched our open abdominal therapy system, ABTheraTM, and expanded our manufacturing capabilities in Ireland as we prepare for the launch of exciting new products in 2010.”

Revenue Recap – Third Quarter and First Nine Months of 2009 Show Stability

Worldwide revenue from V.A.C. Therapy products was $360.6 million for the third quarter of 2009 and $1.039 billion for the first nine months of 2009, compared to $360.3 million and $1.046 billion, respectively, for the corresponding periods of 2008. Higher unit rental and sales volumes in the period were offset by unfavorable foreign currency exchange rate movements and lower realized pricing. Foreign currency exchange movements unfavorably impacted worldwide V.A.C. Therapy revenue by approximately 1% and 3%, respectively, compared to the third quarter and first nine months of the prior year. On a constant currency basis, the growth in V.A.C. Therapy revenue stemmed from increased market penetration of V.A.C. Therapy, resulting in higher rental and sales unit volumes. North American V.A.C. Therapy revenue of $270.8 million for the third quarter and $791.8 million for the first nine months of 2009 represented increases of approximately 1% compared to the same periods of the prior year due to continued market penetration. Average U.S. rental unit volume during the third quarter and first nine months of 2009 increased approximately 4% and 5%, respectively, over the corresponding periods of 2008, partly offset by a lower average realized price due to unfavorable payer mix, reduced treatment periods and lower Medicare pricing. EMEA/APAC V.A.C. Therapy revenue decreased 1% to $89.7 million for the third quarter and decreased 7% to $247.5 million for the first nine months of 2009 from $90.3 million and $264.6 million, respectively, for the third quarter and first nine months of the prior year. Foreign currency exchange movements unfavorably impacted EMEA/APAC V.A.C. Therapy revenue for the third quarter and first nine months of 2009 by 5% and 12%, respectively, compared to the prior-year periods.

Total revenue from our Regenerative Medicine, or LifeCell, division was $71.8 million and $209.0 million for the third quarter and first nine months of 2009, respectively. Third quarter Regenerative Medicine revenue increased 17% as compared to the same period one year ago. Sales of Strattice, our porcine-based regenerative tissue matrix, generated $23.9 million of total sales in the quarter, or 33% of total Regenerative Medicine revenue for the period.

Worldwide Therapeutic Support Systems (“TSS”) revenue was $72.1 million for the third quarter and $217.5 million for the first nine months of 2009, compared to $81.8 million and $250.1 million, respectively for the same periods one year ago, due primarily to lower rental and sales volumes in the United States resulting from the economic downturn and capital constraints on acute care facilities combined with unfavorable foreign currency exchange movements. North American revenue from TSS was $46.5 million for the third quarter of 2009, a 16% decrease from the prior-year period, due primarily to lower hospital census and customer capital constraints. North American TSS revenue for the first nine months of 2009 was $141.8 million, down 15% from the prior year revenue of $167.7 million. EMEA/APAC TSS revenue of $25.5 million and $75.6 million for the third quarter and first nine months of 2009, decreased 4% and 8%, respectively, compared to the corresponding periods of 2008. On a constant currency basis, EMEA/APAC TSS revenue increased 1% for the third quarter and 2% for the first nine months of 2009, compared to the same periods in the prior year.

Total North American revenue was $388.6 million for the third quarter and $1.142 billion for the first nine months of 2009, an increase of 1% and 10%, respectively, from the prior-year periods due primarily to the acquisition of LifeCell in May 2008. Total EMEA/APAC revenue was $115.8 million for the third quarter of 2009 and $324.0 million for the first nine months of 2009, representing decreases of 1% and 7%, respectively, compared to the prior-year periods due primarily to unfavorable foreign currency exchange rate movements. Foreign currency exchange rate movements unfavorably impacted EMEA/APAC revenue by 5% in the third quarter and by 11% in the first nine months of 2009 compared to the prior-year periods.

Profit Margins Improve on Mix and Productivity Initiatives

Gross profit for the third quarter and first nine months of 2009 was $274.9 million and $782.8 million, respectively, representing increases of 8% and 13% from the corresponding periods of the prior year. Gross profit margin was approximately 55% for the third quarter of 2009, an increase of approximately 400 basis points from the same period one year ago. The gross profit margin increase was due primarily to increased field service operations productivity and higher gross margins associated with the Regenerative Medicine business unit.

Third quarter selling, general and administrative (“SG&A”) expenses increased approximately $16.4 million, or 15%, over the third quarter of 2008. SG&A increases included higher legal expenses associated with pending litigation matters, higher share-based compensation expense, increased costs associated with the Company’s upcoming market entry in Japan, higher marketing expenses related to new product launches and global business transformation initiatives.

Research and development expenses for the third quarter of 2009 increased 13% from the prior-year period to $24.7 million, due in part to increased activity related to the development of our next generation of advanced wound care products. Total research and development expenses represented approximately 5% of revenue for the current period. In July, the Company launched its next innovation for the care of the open abdomen, ABThera, which has received strong clinical reviews in its initial applications.

Other Income/Expense Reflects Continued Deleveraging Progress

Third quarter 2009 interest expense decreased to $25.7 million, from $29.9 million in the same period of the prior year, due to scheduled and voluntary debt payments made over the last twelve months. Long-term debt outstanding as of September 30, 2009 consisted of a senior secured term loan of $800.0 million due 2013 and $690.0 million of 3.25% senior convertible notes due 2015.

During the first quarter of 2009, the Company adopted required accounting standards related to the accounting for certain convertible debt instruments. The standards specify that issuers of such instruments should account separately for the liability and equity components in a manner that reflects the entity’s estimated non-convertible borrowing rate at the date of issuance. As a result of the Company’s adoption of these standards, we recorded $3.1 million, or $0.05 per diluted share, of additional after-tax non-cash interest expense during the third quarter of 2009. The required retroactive application of these standards also resulted in additional after-tax, non-cash interest expense for the third quarter of the prior year of $2.8 million, or $0.03 per diluted share.

Income Tax Rate

The effective income tax rate for the third quarter and first nine months of 2009 was 29.7% and 31.1%, respectively, compared to 33.0% and 43.8% for the prior-year periods. The high effective income tax rate for the first nine months of 2008 resulted from the impact of non-deductible costs associated with our LifeCell acquisition. The decrease in the effective income tax rate for the third quarter and first nine months of 2009 was due primarily to the favorable resolution of certain tax contingencies during the quarter.

Reconciliation to Adjusted Diluted Earnings per Share

Diluted earnings per share, on a non-GAAP basis, adjusted for certain non-cash acquisition-related expenses and restructuring charges, were as follows:

	Three months ended		Nine months ended
	September 30, 2009		September 30, 2009

Diluted EPS – GAAP basis	$	0.91	$	2.31
Acquisition-related adjustments:
Amortization of acquired intangibles		0.09		0.27
Debt issuance cost amortization		0.03		0.10
Interest expense – adoption of required
accounting standards for convertible debt		0.05		0.12
Restructuring charges		--		0.09

Adjusted diluted EPS – non-GAAP basis	$	1.08	$	2.89

Financial Position Again Demonstrates Liquidity and Strength

Total cash at quarter-end was $270.1 million, an increase of $22.3 million from year-end 2008. During the third quarter of 2009, the Company made scheduled and voluntary senior credit facility repayments totaling $50.0 million from cash-on-hand. Operating cash flow less net capital expenditures for the first nine months of 2009 was $208.4 million, an increase of $32.5 million, or 18%, from the same period one year ago, due to higher earnings and lower capital expenditures. Total long-term debt outstanding at September 30, 2009 was $1.351 billion on a GAAP-basis, including the discount associated with our adoption of required accounting standards, and $1.490 billion on an economic, or debt-instrument, basis. The long-term debt balances in our condensed consolidated balance sheets reflect the discount associated with applying the estimated non-convertible borrowing rate upon the issuance of the convertible notes. The total discount will accrete over the term of the notes. As of September 30, 2009 and December 31, 2008, these convertible notes had balances of $551.1 million and $536.4 million, respectively, within our condensed consolidated balance sheets.

Outlook

The Company reaffirms the following guidance, based on current information and expectations as of October 21, 2009 (in millions, except per share data):

			% Change
	FY 2008	FY 2009	from 2008
Total revenue	$1,878	$1,950 – $2,000	4% – 6%
Diluted EPS – GAAP basis	$2.32	$3.19 – $3.34	38% – 44%
Acquisition-related adjustments:
In process research and development	0.86	–
Amortization of acquired intangibles	0.21	0.35
Debt issuance cost amortization	0.08	0.15
Expense from LifeCell inventory step-up	0.13	–
Interest expense – adoption of required
accounting standards for convertible debt	0.10	0.17
Restructuring charges	0.08	0.09

Adjusted Diluted EPS – non-GAAP basis	$3.78	$3.95 – $4.10	4% – 8%

Diluted weighted average shares outstanding	71.8	70.5 – 71.5	(2%) – 0%

The revenue guidance reflects our expectation of continued capital constraints in the hospital setting, resulting in a double-digit decline in TSS revenue, combined with slower international V.A.C. Therapy revenue growth due to additional competitive and economic factors.

Non-GAAP Financial Information

Within this document, we have included our results for the third quarter and nine months ended September 30, 2009 along with our outlook on a non-GAAP basis to exclude the impact of the specified non-cash expenses set forth above associated with our acquisition of LifeCell in the second quarter of 2008 and the impact of restructuring charges incurred during the first quarter of 2009 and the fourth quarter of 2008. In addition, we have presented supplemental revenue data on a non-GAAP basis to exclude the impact of foreign currency fluctuations between 2008 and 2009. These non-GAAP financial measures do not replace the presentation of our GAAP results and outlook. We have provided this supplemental non-GAAP information because it may provide meaningful information regarding our results and outlook on a basis that better facilitates an understanding of our expected results of operations which may not be otherwise apparent under GAAP. Management uses this non-GAAP financial information, along with GAAP information, for reviewing the operating results of its business segments and for analyzing potential future business trends. In addition, we believe some investors may use this information in a similar fashion. A reconciliation of our GAAP selected financial information for the periods presented to the non-GAAP selected financial information provided is included herein.

Earnings Release Conference Call

As previously announced, we have scheduled an earnings release conference call for 8:30 a.m. Eastern Daylight Time today, Wednesday, October 21, 2009. The dial-in numbers for this conference call are as follows:

Domestic Dial-in Number:		866-336-4900
International Dial-in Number:		+702-696-5179
Conference ID Number:		34042303

This call is being webcast and can be accessed at the Kinetic Concepts, Inc. Web site at http://www.kci1.com/investor/index.asp, by clicking on Webcast – Q3 2009 Kinetic Concepts, Inc. Earnings Conference Call. An archive of the web cast will be available until October 20, 2010 at http://www.kci1.com/investor/index.asp.

KCI's business outlook as of today is expected to be available on KCI's Investor Relations web site. KCI does not currently expect to update this business outlook until the release of KCI's next quarterly earnings announcement, notwithstanding subsequent developments. Although KCI undertakes no duty to update its business outlook, KCI may update the full business outlook or any portion thereof at any time.

About KCI

Kinetic Concepts, Inc. (NYSE:KCI), 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.

The Company employs approximately 6,600 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 including, among other things, management's outlook, estimates of future performance, revenue, earnings per share, growth objectives and weighted average shares outstanding. The forward-looking statements contained herein are based on our current expectations and are subject to a number of risks and uncertainties that could cause us to fail to achieve our current financial projections and other expectations, such as changes in the demand for V.A.C. Therapy resulting from increased competition, the seasonal slowing of V.A.C. Therapy unit growth in the fourth and first quarter of each year, changes in payer reimbursement policies and our ability to protect our intellectual property rights. All information set forth in this release and its attachments is as of October 21, 2009. We undertake no duty to update this information. More information about potential factors that could cause our results to differ or adversely affect our business and financial results is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and in our quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2009 and June 30, 2009, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." These reports are on file with the SEC and available at the SEC's website at www.sec.gov. Additional information may also be set forth in those sections in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009, which will be filed with the SEC in early November 2009.

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)

	Three months ended September 30,								Nine months ended September 30,
							%								%
	2009			2008			Change		2009			2008			Change
Revenue:
Rental	$	298,577		$	305,205		(2.2	)%	$	872,955		$	906,393		(3.7	)%
Sales		205,820			198,094		3.9			592,872			479,046		23.8

Total revenue		504,397			503,299		0.2			1,465,827			1,385,439		5.8

Rental expenses		169,555			182,392		(7.0	)		505,264			538,669		(6.2	)
Cost of sales		59,940			66,542		(9.9	)		177,745			152,220		16.8

Gross profit		274,902			254,365		8.1			782,818			694,550		12.7

Selling, general and administrative expenses		125,838			109,420		15.0			365,045			309,814		17.8
Research and development expenses		24,669			21,884		12.7			68,071			53,279		27.8
Acquired intangible asset amortization		10,160			10,189		(0.3	)		30,476			14,843		105.3
In-process research and development		-			-		-			-			61,571		-

Operating earnings		114,235			112,872		1.2			319,226			255,043		25.17

Interest income and other		158			835		(81.1	)		646			4,997		(87.1	)
Interest expense		(25,728	)		(29,943	)	(14.1	)		(80,449	)		(49,062	)	64.0
Foreign currency gain (loss)		3,183			(3,253	)	-			(3,896	)		(2,740	)	42.2

Earnings before income taxes		91,848			80,511		14.1			235,527			208,238		13.1

Income taxes		27,279			26,600		2.6			73,156			91,185		(19.8	)

Net earnings	$	64,569		$	53,911		19.8	%	$	162,371		$	117,053		38.7	%

Net earnings per share:
Basic	$	0.92		$	0.75		22.7	%	$	2.32		$	1.63		42.3	%

Diluted	$	0.91		$	0.75		21.3	%	$	2.31		$	1.62		42.6	%

Weighted average shares outstanding:
Basic		70,150			71,831					70,035			71,756

Diluted		70,666			72,130					70,425			72,110

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)


	September 30,		December 31,
	2009		2008
Assets:
Current assets:
Cash and cash equivalents	$	270,054	$	247,767
Accounts receivable, net		410,738		406,007
Inventories, net		111,615		109,097
Deferred income taxes		23,921		19,972
Prepaid expenses and other		36,684		34,793

Total current assets		853,012		817,636

Net property, plant and equipment		290,272		303,799
Debt issuance costs, less accumulated amortization of
$19,391 at 2009 and $7,896 at 2008		38,800		50,295
Deferred income taxes		10,924		8,635
Goodwill		1,328,881		1,337,810
Identifiable intangible assets, net		458,586		472,547
Other non-current assets		13,140		12,730

	$	2,993,615	$	3,003,452

Liabilities and Shareholders' Equity:
Current liabilities:
Accounts payable	$	72,349	$	53,765
Accrued expenses and other		214,687		258,666
Current installments of long-term debt		114,286		100,000
Income taxes payable		616		-

Total current liabilities		401,938		412,431

Long-term debt, net of current installments and discount		1,236,802		1,415,443
Non-current tax liabilities		30,268		26,205
Deferred income taxes		224,319		239,621
Other non-current liabilities		5,390		6,382

		1,898,717		2,100,082

Shareholders' equity:
Common stock; authorized 225,000 at 2009 and 2008,
issued and outstanding 71,088 at 2009 and 70,524 at 2008		71		71
Preferred stock; authorized 50,000 at 2009 and 2008; issued and
outstanding 0 at 2009 and 2008		-		-
Additional paid-in capital		793,093		765,645
Retained earnings		291,019		128,648
Accumulated other comprehensive income, net		10,715		9,006

Shareholders' equity		1,094,898		903,370

	$	2,993,615	$	3,003,452

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Nine months ended September 30,
	2009			2008
Cash flows from operating activities:
Net earnings	$	162,371		$	117,053
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation, amortization and other		114,672			86,649
Provision for bad debt		7,602			5,986
Amortization of deferred gain on sale of headquarters facility		(803	)		(803	)
Amortization of convertible debt discount		14,645			8,081
Write-off of deferred debt issuance costs		2,348			860
Share-based compensation expense		22,977			19,678
Excess tax benefit from share-based payment arrangements		(515	)		(258	)
Write-off of in-process research and development		-			61,571
Change in assets and liabilities, net of business acquired:
Increase in accounts receivable, net		(14,419	)		(19,879	)
Increase in inventories, net		(2,725	)		(8,297	)
Increase in prepaid expenses and other		(1,505	)		(9,712	)
Increase (decrease) in deferred income taxes, net		(5,212	)		68,105
Increase (decrease) in accounts payable		18,484			(8,230	)
Decrease in accrued expenses and other		(46,415	)		(49,603	)
Increase in tax liabilities, net		978			554

Net cash provided by operating activities		272,483			271,755

Cash flows from investing activities:
Additions to property, plant and equipment		(66,019	)		(83,748	)
Decrease (increase) in inventory to be converted into equipment
for short-term rental		1,969			(12,100	)
Dispositions of property, plant and equipment		4,298			4,638
Business acquired in purchase transaction, net of cash acquired		(173	)		(1,745,522	)
Increase in identifiable intangible assets and other non-current assets		(18,206	)		(3,753	)

Net cash used by investing activities		(78,131	)		(1,840,485	)

Cash flows from financing activities:
Proceeds from revolving credit facility		20,000			75,000
Repayments of long-term debt, revolving credit facility and
capital lease obligations		(198,990	)		(25,193	)
Excess tax benefit from share-based payment arrangements		515			258
Proceeds from exercise of stock options		784			2,431
Purchase of immature shares for minimum tax withholdings		(242	)		(886	)
Proceeds from the purchase of stock in ESPP and other		3,336			2,346
Acquisition financing:
Proceeds from senior credit facility		-			1,000,000
Proceeds from convertible senior notes		-			690,000
Repayment of long-term debt		-			(68,000	)
Proceeds from convertible debt warrants		-			102,458
Purchase of convertible debt hedge		-			(151,110	)
Payment of debt issuance costs		-			(60,704	)

Net cash provided (used) by financing activities		(174,597	)		1,566,600

Effect of exchange rate changes on cash and cash equivalents		2,532			(18,627	)

Net increase (decrease) in cash and cash equivalents		22,287			(20,757	)
Cash and cash equivalents, beginning of period		247,767			265,993

Cash and cash equivalents, end of period	$	270,054		$	245,236

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Reconciliation from GAAP to Non-GAAP
Supplemental Revenue Data
(in thousands)
(unaudited)


	Three months ended September 30,
	2009									GAAP		Constant
						Constant		2008		%		Currency %
	GAAP		FX Impact			Currency		GAAP		Change		Change (1)

Total Revenue:
V.A.C.
North America	$	270,848	$	649		$	271,497	$	269,965	0.3	%	0.6	%
EMEA/APAC		89,732		4,625			94,357		90,324	(0.7	)	4.5

Total V.A.C.		360,580		5,274			365,854		360,289	0.1		1.5

Regenerative Medicine
North America		71,248		(50	)		71,198		61,233	16.4		16.3
EMEA/APAC		519		(54	)		465		-	-		-

Total Regenerative Medicine		71,767		(104	)		71,663		61,233	17.2		17.0

Therapeutic Support Systems
North America		46,542		431			46,973		55,082	(15.5	)	(14.7	)
EMEA/APAC		25,508		1,346			26,854		26,695	(4.4	)	0.6

Total Therapeutic Support Systems		72,050		1,777			73,827		81,777	(11.9	)	(9.7	)

Total North America revenue		388,638		1,030			389,668		386,280	0.6		0.9
Total EMEA/APAC revenue		115,759		5,917			121,676		117,019	(1.1	)	4.0

Total Revenue	$	504,397	$	6,947		$	511,344	$	503,299	0.2	%	1.6	%

V.A.C.:
North America revenue
Rental	$	193,337	$	316		$	193,653	$	192,799	0.3	%	0.4	%
Sales		77,511		333			77,844		77,166	0.4		0.9

Total North America revenue		270,848		649			271,497		269,965	0.3		0.6

EMEA/APAC revenue
Rental		43,214		2,542			45,756		44,588	(3.1	)	2.6
Sales		46,518		2,083			48,601		45,736	1.7		6.3

Total EMEA/APAC revenue		89,732		4,625			94,357		90,324	(0.7	)	4.5

Total rental revenue		236,551		2,858			239,409		237,387	(0.4	)	0.9
Total sales revenue		124,029		2,416			126,445		122,902	0.9		2.9

Total – V.A.C. Revenue	$	360,580	$	5,274		$	365,854	$	360,289	0.1	%	1.5	%

Regenerative Medicine Revenue:
North America sales revenue	$	71,248	$	(50	)	$	71,198	$	61,233	16.4	%	16.3	%
EMEA/APAC sales revenue		519		(54	)		465		-	-		-

Total – Regenerative Medicine Revenue	$	71,767	$	(104	)	$	71,663	$	61,233	17.2	%	17.0	%

Therapeutic Support Systems Revenue:
North America revenue
Rental	$	41,325	$	361		$	41,686	$	46,461	(11.1	) %	(10.3	) %
Sales		5,217		70			5,287		8,621	(39.5	)	(38.7	)

Total North America revenue		46,542		431			46,973		55,082	(15.5	)	(14.7	)

EMEA/APAC revenue
Rental		20,701		957			21,658		21,357	(3.1	)	1.4
Sales		4,807		389			5,196		5,338	(9.9	)	(2.7	)

Total EMEA/APAC revenue		25,508		1,346			26,854		26,695	(4.4	)	0.6

Total rental revenue		62,026		1,318			63,344		67,818	(8.5	)	(6.6	)
Total sales revenue		10,024		459			10,483		13,959	(28.2	)	(24.9	)

Total – Therapeutic Support Systems Revenue Revenue	$	72,050	$	1,777		$	73,827	$	81,777	(11.9	) %	(9.7	) %


(1) Represents percentage change between 2009 Non-GAAP, Constant Currency, revenue and 2008 GAAP revenue.

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Reconciliation from GAAP to Non-GAAP
Supplemental Revenue Data
(in thousands)
(unaudited)


	Nine months ended September 30,
	2009									GAAP		Constant
						Constant		2008		%		Currency %
	GAAP		FX Impact			Currency		GAAP		Change		Change (1)

Total Revenue:
V.A.C.
North America	$	791.837	$	4,261		$	796,098	$	781,884	1.3	%	1.8	%
EMEA/APAC		247,490		30,620			278,110		264,613	(6.5	)	5.1

Total V.A.C.		1,039,327		34,881			1,074,208		1,046,497	(0.7	)	2.6

Regenerative Medicine
North America		208,132		(50	)		208,082		88,836	134.3		134.2
EMEA/APAC		913		(64	)		849		-	-		-

Total Regenerative Medicine		209,045		(114	)		208,931		88,836	135.3		135.2

Therapeutic Support Systems
North America		141,817		2,941			144,758		167,705	(15.4	)	(13.7	)
EMEA/APAC		75,638		8,643			84,281		82,401	(8.2	)	2.3

Total Therapeutic Support Systems		217,455		11,584			229,039		250,106	(13.1	)	(8.4	)

Total North America revenue		1,141,786		7,152			1,148,938		1,038,425	10.0		10.6
Total EMEA/APAC revenue		324,041		39,199			363,240		347,014	(6.6	)	4.7

Total Revenue	$	1,465,827	$	46,351		$	1,512,178	$	1,385,439	5.8	%	9.1	%

V.A.C.:
North America revenue
Rental	$	566,274	$	2,248		$	568,522	$	562,982	0.6	%	1.0	%
Sales		225,563		2,013			227,576		218,902	3.0		4.0

Total North America revenue		791,837		4,261			796,098		781,884	1.3		1.8

EMEA/APAC revenue
Rental		120,472		15,773			136,245		130,966	(8.0	)	4.0
Sales		127,018		14,847			141,865		133,647	(5.0	)	6.1

Total EMEA/APAC revenue		247,490		30,620			278,110		264,613	(6.5	)	5.1

Total rental revenue		686,746		18,021			704,767		693,948	(1.0	)	1.6
Total sales revenue		352,581		16,860			369,441		352,549	-		4.8

Total – V.A.C. Revenue	$	1,039,327	$	34,881		$	1,074,208	$	1,046,497	(0.7	) %	2.6	%

Regenerative Medicine Revenue:
North America sales revenue	$	208,132	$	(50	)	$	208,082	$	88,836	134.3	%	134.2	%
EMEA/APAC sales revenue		913		(64	)		849		-	-		-

Total – Regenerative Medicine Revenue	$	209,045	$	(114	)	$	208,931	$	88,836	135.3	%	135.2	%

Therapeutic Support Systems Revenue:
North America revenue
Rental	$	125,828	$	2,383		$	128,211	$	144,784	(13.1	) %	(11.4	) %
Sales		15,989		558			16,547		22,921	(30.2	)	(27.8	)

Total North America revenue		141,817		2,941			144,758		167,705	(15.4	)	(13.7	)

EMEA/APAC revenue
Rental		60,381		7,049			67,430		67,661	(10.8	)	(0.3	)
Sales		15,257		1,594			16,851		14,740	3.5		14.3

Total EMEA/APAC revenue		75,638		8,643			84,281		82,401	(8.2	)	2.3

Total rental revenue		186,209		9,432			195,641		212,445	(12.3	)	(7.9	)
Total sales revenue		31,246		2,152			33,398		37,661	(17.0	)	(11.3	)

Total – Therapeutic Support Systems Revenue Revenue	$	217,455	$	11,584		$	229,039	$	250,106	(13.1	) %	(8.4	) %


(1) Represents percentage change between 2009 Non-GAAP, Constant Currency, revenue and 2008 GAAP revenue.

KINETIC CONCEPTS, INC. AND SUBSIDIARIES
Selected Financial Information - GAAP to Non-GAAP Reconciliation
(in thousands, except per share data)
(unaudited)


Three months ended September 30,
							Interest
							Expense -
					Debt		Adoption of
			Amortization		Issuance		Required		Restructuring
	2009		of Acquired		Cost		Accounting		and Other		Adjusted		Adjusted		%
	GAAP		Intangibles		Amortization		Standards		Charges		2009		2008		Change

Operating earnings	$	114,235	$	10,160	$	-	$	-	$	-	$	124,395	$	130,060	(4.4	)%
Net earnings	$	64,569	$	6,248	$	2,293	$	3,060	$	-	$	76,170	$	69,229	10.0	%
Diluted earnings per share	$	0.91	$	0.09	$	0.03	$	0.05	$	-	$	1.08	$	0.96	12.5	%


Nine months ended September 30,
							Interest
							Expense -
					Debt		Adoption of
			Amortization		Issuance		Required		Restructuring
		2009	of Acquired		Cost		Accounting		and Other		Adjusted		Adjusted		%
	GAAP		Intangibles		Amortization		Standards		Charges			2009		2008	Change

Operating earnings	$	319,226	$	30,476	$	-	$	-	$	9,356	$	359,058	$	341,619	5.1	%
Net earnings	$	162,371	$	18,742	$	7,069	$	9,007	$	6,301	$	203,490	$	202,539	0.5	%
Diluted earnings per share	$	2.31	$	0.27	$	0.10	$	0.12	$	0.09	$	2.89	$	2.81	2.8	%




Three months ended September 30,
							Interest
							Expense -
					Debt		Adoption of						In-Process
			Amortization		Issuance		Required		Restructuring				Research
	2008		of Acquired		Cost		Accounting		and Other		Inventory		and		Adjusted
	GAAP		Intangibles		Amortization		Standards		Charges		Write-up		Development		2008

Operating earnings	$	112,872	$	10,189	$	-	$	-	$	-	$	6,999	$	-	$	130,060
Net earnings	$	53,911	$	6,266	$	1,914	$	2,834	$	-	$	4,304	$	-	$	69,229
Diluted earnings per share	$	0.75	$	0.09	$	0.03	$	0.03	$	-	$	0.06	$	-	$	0.96


Nine months ended September 30,
							Interest
							Expense -
					Debt		Adoption of						In-Process
			Amortization		Issuance		Required		Restructuring				Research
		2008	of Acquired		Cost		Accounting		and Other		Inventory		and		Adjusted
	GAAP		Intangibles		Amortization		Standards		Charges		Write-up		Development			2008

Operating earnings	$	255,043	$	14,843	$	-	$	-	$	-	$	10,162	$	61,571	$	341,619
Net earnings	$	117,053	$	9,128	$	3,567	$	4,970	$	-	$	6,250	$	61,571	$	202,539
Diluted earnings per share	$	1.62	$	0.13	$	0.05	$	0.07	$	-	$	0.09	$	0.85	$	2.81

Texas	0001-09913	74-1891727
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

8023 Vantage Drive San Antonio, Texas		78230
(Address of principal executive offices)		(Zip Code)

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Exhibit No.	Description
99.1	Press Release dated “October 21, 2009, entitled "Kinetic Concepts Reports Financial Results For Third Quarter and First Nine Months of 2009."

	KINETIC CONCEPTS, INC. (REGISTRANT)

October 21, 2009	By:	/s/ Martin J. Landon
	Name:	Martin J. Landon
	Title:	Executive Vice President and Chief Financial Officer

Exhibit No.	Description
99.1	Press Release dated October 21, 2009, entitled "Kinetic Concepts Reports Financial Results For Third Quarter and First Nine Months of 2009."