Form: 8-K

Current report filing

March 2, 2001

PRESS RELEASE DATED 2/19/2001

Published on March 2, 2001


EXHIBIT 99.1

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RESMED ACQUIRES SHARES OF LEADING GERMAN SLEEP COMPANY, MAP GMBH
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SAN DIEGO, California, February 19, 2001...ResMed Inc. (NYSE:RMD) announced
today that it has acquired all of the outstanding shares of MAP Medizin-
Technologie GmbH, Munich, Germany. The total transaction is valued at DEM 146
million (approximately US$ 69 million) to be paid in cash and the assumption of
debt. MAP, with revenues in excess of DEM 52 million (approximately US$ 25
million) for the year ended December 31, 2000, designs, manufactures and
distributes medical devices for the diagnosis and treatment of sleep-disordered
breathing (SDB) with a particular focus on obstructive sleep apnea. MAP has
built a leadership position in the German market and has expanded to surrounding
countries where it has subsidiaries in Austria, Holland, Switzerland, and
France. MAP has approximately 180 employees.

Christopher Roberts, Ph.D., Executive Vice-President of ResMed Inc., commented:
"Germany is the second largest SDB market in the world, and MAP is the market
leader in Germany with both its diagnostic and treatment devices. We are very
pleased that MAP will be joining forces with us. MAP's strengths in R&D, sales
and marketing complement those of ResMed and will strengthen ResMed's market
leadership position in Europe. The acquisition of MAP represents a significant
step forward in ResMed's global strategy and will assist ResMed's European
expansion."

Dr. Roberts further commented: "We are delighted that Dr. Stefan Madaus, CEO,
Herr Harald Voegele, COO, and Caspar Graf Stauffenberg, CFO, will continue on in
those capacities. We believe this is the basis for a successful integration of
the two companies."

Dr. Madaus stated: "The MAP team is looking forward to working with a
successful, truly global company. We believe that we will now have the
resources to make an even stronger contribution with innovative devices for the
diagnosis and treatment of sleep-disordered breathing."

"The MAP management team is to be congratulated for having taken the company to
the number one position in Germany in just six years and we are delighted to
partner with them," said ResMed Chairman and Chief Executive Officer, Peter
Farrell, Ph.D. "This acquisition comes at the right time for us when we are
looking at opening up new areas of business in both the diagnosis and treatment
of sleep-disordered breathing in patients with chronic obstructive pulmonary
disease, congestive heart failure and post stroke."

The acquisition of MAP is to be paid in two installments: an initial payment of
DEM 28.75 million (approximately US$ 13.5 million), with the balance of DEM
86.25 million (approximately US$ 41 million) due within 90 days. Total debt to
be assumed is approximately DEM 31 million (approximately US$ 14.5 million). The
transaction, excluding certain costs associated with it, is considered non-
dilutive during the remainder of ResMed's fiscal year ending June 30, 2001. As
part of the transaction and as a consequence of MAP's extensive research and
development activities, ResMed expects to take a charge for purchased in-
progress R&D within its March quarter results. ResMed anticipates funding the
acquisition through a combination of debt and cash.

ResMed is a leading developer, manufacturer, and marketer of medical equipment
for the diagnosis and treatment of sleep-disordered breathing, selling a
comprehensive range of products in over 50 countries. ResMed made the Forbes'
list of 200 Best Small Companies in America for four consecutive years; in 2000,
ResMed was ranked #34 up from #172 in 1997. In both 1999 and 2000, ResMed was
listed as one of Business Week's Hundred Hot Growth Companies and was named by
FORTUNE magazine as one of America's One Hundred Fastest Growing Companies.

Further information can be obtained by contacting Walter Flicker, Corporate
Secretary, at ResMed Inc., San Diego, (858) 746 2400 ext. 2211 or by visiting
the Company's multilingual web site at www.resmed.com.

Statements contained in this release which are not historical facts, including
but not limited to statements concerning the financial impact of the
acquisition, are "forward-looking" statements as contemplated by the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements,
including statements regarding the Company's future revenue and earnings
projections and the development of new markets for the Company's products, are
subject to risks and uncertainties, which could cause actual results to differ
materially from those projected or implied in the forward looking statements.
Such risks and uncertainties are discussed in the Company's Annual Report on
Form 10-K for its most recent fiscal year.


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