Hillenbrand Releases Investor Roadshow Materials and Updated Financial Guidance Related to Separation Of Hill-Rom and Batesville Casket

Friday, March 14, 2008 General News
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BATESVILLE, Ind., March 13 HillenbrandIndustries, Inc. (NYSE: HB) filed materials with the Securities and ExchangeCommission (SEC) associated with investor communications related to theupcoming separation of its two operating companies: Hill-Rom, the company'smedical technology business, and Batesville Casket, the company's death carebusiness. The separation is expected to be completed by the end of Marchpending final clearance of the Form 10 of Batesville Holdings, Inc., to be theparent company for Batesville Casket, originally filed November 5, 2007 andlast amended on March 13, 2008, and other conditions listed below.

A Form 8-K filing, consisting of presentation materials for each company,is posted on the SEC website at www.sec.gov and also can be viewed on theHillenbrand website at www.hillenbrand.com.


In order to provide investors additional financial information withrespect to Hill-Rom and Batesville on a post-separation basis, our existingoperational guidance has been supplemented to reflect future expectations forthe balance of fiscal 2008 for each business. Updated financial guidance forboth businesses is provided in schedules accompanying this release and in thepresentation materials referenced above.

For fiscal year 2008, Hill-Rom Holdings, which will be the new name ofHillenbrand Industries following the separation, continues to expect revenueof $1.427 - 1.476 billion. Capital sales are expected to be in the range of$0.991 - 1.022 billion while Hill-Rom rental revenues are expected to bebetween $435 - 454 million. Hill-Rom projects GAAP earnings per fully dilutedshare of $1.11 - 1.30, with adjusted earnings per fully diluted share of$1.13 - 1.32. These amounts have been adjusted from previously providedguidance to reflect the impacts of Hill-Rom's new capital structure oninterest expense and to eliminate other income associated with the transfer ofcertain investments to Batesville in conjunction with the separation. Theeffective tax rate has also been adjusted to give effect to the separation,along with the expiration of the research and development tax credit earlierthis year. It is important to note that the above earnings guidance, both ona GAAP and as adjusted basis, exclude the effects of certain one-time costsassociated with the separation, including the modification of equitycompensation awards, costs associated with the repurchase of Hillenbrand debtcontemplated in the transaction and other separation-related costs. Thesecosts have been excluded due to the difficulty in predicting such amounts andthe fact that many of these costs will be reflected as a component ofdiscontinued operations in Hill-Rom's future reporting.

Batesville Holdings, Inc, to be the parent company of Batesville Casket,will change its name to Hillenbrand, Inc. in connection with the separation.For fiscal year 2008, Batesville continues to expect revenue of $668 - 686million, with GAAP earnings per fully diluted share of $1.27 - 1.47, andadjusted fully diluted earnings per share of $1.64 - 1.79. Adjusted fullydiluted earnings exclude the effects of the anticipated equity compensationmodification and other separation-related costs estimated to be $16 - 18million (pre-tax) and anti-trust litigation costs in 2008.

All current and potential investors are encouraged to review theDisclosure Regarding Forward-Looking Statements in this press release as wellas all financial documents filed by Hillenbrand Industries or its subsidiarieswith the SEC. Hillenbrand Industries, Inc. provides earnings per shareguidance on an adjusted basis from continuing operations because the company'smanagement believes that the presentation provides useful information toinvestors. Among other things, it may assist investors in evaluating thecompany's operations period over period -- which is also the basis on whi

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