STATEMENT OF PURPOSE

KCI is a manufacturer and supplier of durable medical equipment and supplies. KCI's operations are subject to numerous federal and state laws and regulations. Many of KCI's sales and rentals are made to individuals who receive their health insurance through Medicare, Medicaid and other federal and state payors.  The laws and regulations governing durable medical equipment and the manufacture or supply of such equipment have become increasingly complex. KCI is committed to conducting all of its business activities in compliance with all applicable laws, rules and regulations. Its management and employees are dedicated to high ethical standards and recognize KCI's duty to conduct its affairs within the bounds of the law.