| We are optimistic that these efforts will enable us to continue to build a powerful pan-European organization. A good example of product innovation in Europe that will drive shareholder value is the introduction of Hill-Rom's ZoneAire® Sleep Surface for the company's highly successful Evolution(TM) European hospital bed, which was brought to the market in 1994. Offered as an option or field-upgrade, the ZoneAire surface is a mattress replacement that prevents pressure ulcers in six patient zones. Prior to this innovation, prevention and treatment products in Europe consisted of cumbersome, full-frame therapy beds or mattress overlays. A prevention product such as the ZoneAire surface, which can retrofit the thousands of Evolution beds currently on the market, is very attractive to customers. The electronics and compressor of the ZoneAire surface were ingeniously integrated into the Evolution bed frame without compromising the bed's unique look and feel. This is a bed that has the best of European and U.S. features. In addition, a new "breathable" mattress cover provides greater patient comfort while reducing friction and shear.
Engineering of the Evolution bed with ZoneAire surface was accomplished in record time by Hill-Rom product development teams working interactively in the U.S., Germany and France. We look for this product to continue to capture even greater market share in Europe and to address the high-end segment of long-term care. Hill-Rom Europe will also create value with improved products for the growing long-term care market. The Harmonie(TM) bed line, produced in France, has several new ergonomic features to assist both the resident and caregiver. The combination of |
caregiver. The combination of "auto-contour" and sliding backrest features prevent the resident from sliding down and towards the foot of the bed as the head rises. This results in reduced nurse calls, greater caregiver efficiency and improved resident comfort and breathing capacity. An improved bed control system makes it easier for the resident to adjust the bed and reduces his or her reliance on the caregiver. These are but a few of the differentiated features that were developed to increase market share in the European long-term care market. As a whole, Hill-Rom had a turn-around year in 1996. The company priorities for 1997 are to fortify and significantly improve these results through: aggressive Continuous Improvement; increased customer satisfaction; a turnaround of European operations; and the further execution of Hill-Rom's global mission: to help patients, the elderly and their caregivers. Medeco Increases Customer Focus Through Direct Distribution Near the end of the 1996 fiscal year, Medeco President Tim Layton and the people who work with him took one of the most significant actions in the history of the lock industry. The company announced that, effective January 13, 1997, it was converting to direct distribution of its door security products to its retail locksmith customers. Medeco had relied on a network of distributors throughout the U.S. and Canada, but due to its aggressive Continuous Improvement efforts, which significantly quickened product delivery times, the company converted to direct distribution. This action is driving shareholder value because it offers |
