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Respironics to Build New Manufacturing Facility for Production of Sleep Therapy Devices; Expands Footprint in Westmoreland County


MURRYSVILLE, Pa., July 26, 2007 -- Respironics, Inc. (Nasdaq: RESP) today announced plans to build a $32 million manufacturing facility focused on the production of its sleep therapy devices. Situated on 56 acres at Westmoreland Business & Research Park, in Upper Burrell Township, the new 165,000-square-foot facility will be located approximately seven miles from the Company�s Corporate Headquarters and its current Sleep and Home Respiratory manufacturing facility in Murrysville, Pennsylvania.

The need for a dedicated world class plant for sleep therapy products is owed to sizable growth in the global sleep market, estimated to be growing at 15% to 20%, coupled with Respironics' widening portfolio of medical devices designed to address market needs in the overall sleep and respiratory markets globally. Since the current plant was constructed in 1990, Respironics has grown to a $1.2 billion company with a presence in more than 131 countries. It operates manufacturing sites in Pennsylvania, California, Georgia, Connecticut, Oregon and abroad.

"This new facility will enable us to further the development of our center of excellence manufacturing strategy by focusing on products to support our Obstructive Sleep Apnea (OSA) business, a core growth driver of the Company," said John L. Miclot, President and Chief Executive Officer. "It also offers us many other benefits including the potential for high volume material logistics and production and optimization of process efficiencies," Miclot added.

The Company pioneered sleep therapy with the commercialization of continuous positive airway pressure (CPAP), a proven treatment for OSA. The National Sleep Foundation reports more than 18 million Americans suffer from this chronic condition. An apneic event occurs when breathing is interrupted during sleep, sometimes for as long as 10-30 seconds and as often as 400 times a night.

Respironics will finalize plans for the new facility over the next several months with completion expected in approximately 14 to 16 months. The current manufacturing site in Murrysville will be used as a multi-purpose facility and will continue to produce certain devices including ventilation and neonatal products used in the hospital and homecare markets.

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The new manufacturing site is one of several recent facility enhancements by Respironics to accommodate its growing operations and workforce. The company currently employs more than 1,700 associates in Western Pennsylvania and nearly 5,000 worldwide.

This new 165,000-square-foot facility will be located in the fourth phase of development at the Westmoreland Business & Research Park and can be expanded to 225,000-square-feet in the future. The 545-acre industrial park is currently home to 18 companies employing more than 2,200 workers. Respironics� initial associate level at this facility will be 575 with anticipated growth of 20% in five years.

"With today�s global economy and the competitive nature of manufacturing, we recognize the need to have developed industrial sites immediately available for expanding businesses," said Westmoreland County Commissioner Chairman Tom Balya. "We are very excited to assist Respironics with its growth and facility expansion in Westmoreland County."

In 2007, Respironics marked the arrival of a new state-of-the-art facility in the United Kingdom for its European operations and Respiratory Drug Delivery (RDD) business and established a Center for Excellence in Aerosol Research.

At its U.S. headquarters, Respironics expanded the footprint of its main campus with three nearby properties. It relocated its Sleep and Home Respiratory group to its new headquarters on Rt. 286 in Monroeville and is putting the finishing touches on a 30,000-square-foot call center in Plum Borough. It also is developing new office space in Monroeville for its Children�s Medical Ventures business, which provides developmentally supportive products and services for premature babies, healthy newborns and older hospitalized infants.

Respironics stated that it will not be changing its financial guidance or outlook based on this announcement.

Respironics is a leading developer, manufacturer and distributor of innovative products and programs that serve the global sleep and respiratory markets. Focusing on emerging market needs, the Company is committed to providing valued solutions to help improve outcomes for patients, clinicians and healthcare providers. Respironics markets its products in 131 countries and employs over 4,900 associates worldwide. Further information can be found on the Company�s Web site: www.respironics.com.


FORWARD-LOOKING STATEMENT

This document contains forward-looking statements, including statements relating to, among other things, developments in the healthcare industry; the success of the Company�s marketing, sales, and promotion programs; future sales, acceptance, and quality of the Company�s products and programs; the results of clinical trials; the timing and success of new product introductions; new product development; anticipated cost savings; FDA and other regulatory requirements, enforcement actions, product recalls or related field actions; future results from acquisitions and strategic investments; growth rates in foreign markets; regulations and other factors affecting operations and sales outside the United States; foreign currency fluctuations; the effects of a major natural disaster, cyber-attack or other catastrophic event that results in the destruction or disruption of any critical business or information technology systems; customer consolidation and concentration; increasing price competition and other competitive factors in the manufacture, distribution, and sale of products; interest rate fluctuations; expiration of intellectual property rights; intellectual property and related litigation; other litigation; future levels of earnings and revenues; the number of equity awards granted to employees and changes in the Company�s stock price; and third party reimbursement; all of which are subject to change. Actual results may differ materially from those described in any forward-looking statements. Additional information on potential factors that could affect the Company�s financial results are included in the reports filed with the SEC, including the reports on Form 10-K, 10-Q and 8-K.


© 2007 Respironics, Inc. and its affiliates. All rights reserved.

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