Invacare Corporation

Overview

Invacare Corporation (Invacare) is a global manufacturer and distributor of non-acute healthcare products. The Company designs, manufactures and distributes a line of healthcare products for the non-acute care environment, including the home healthcare, retail and extended care markets.

Its products include standard manual wheelchairs, motorized and lightweight prescription wheelchairs, seating and positioning systems, motorized scooters, patient aids, home care beds, low-air-loss therapy products and respiratory products. Invacare also distributes medical equipment and related supplies manufactured by other companies. The Company's products are sold to over 25,000 home healthcare and medical equipment provider locations in the United States, Australia, Canada, Europe and New Zealand, with the remainder of its sales being primarily to government agencies and distributors.

During the year ended December 31, 2005, Invacare acquired Australian Healthcare Equipment Pty. Ltd., a manufacturer of beds, related furniture and pressure care products for home care and non-acute institutional care; Altimate Medical, Inc., a manufacturer of standing frames and mobility aids for the rehabilitation market, and Medical Support Systems Holdings Limited, a manufacturer of foam pressure-reducing products for the healthcare market.

North America Operations

The Company's North American operations are aligned into five primary product groups: rehab products, standard products, respiratory products, distributed products and continuing care. In Canada, the Company primarily sells Invacare products manufactured in the United States.

The rehab product line comprises power wheelchairs, custom manual wheelchairs, personal mobility products, and seating and positioning products. Invacare manufactures a line of power wheelchairs for individuals who require independent powered mobility. The range includes products that can be significantly customized to meet an individual's specific needs, as well as products that are versatile and meet a range of individual requirements. Power wheelchair lines are marketed under the Invacare Storm Series and Xterra brand names, and include a range of powered mobility products. Invacare manufactures and markets a range of custom manual wheelchairs for everyday, sports and recreational uses. These lightweight chairs are marketed under the Invacare and Invacare Top End brand names. In 2005, Invacare introduced the At'm Quick Transport, an upgrade to the Invacare At'm Take Along Chair, which is the next evolution in portable mobility. Invacare markets seat cushions, back supports and accessories under three series. Invacare Essential Series provides simple seating solutions for comfort, fit and function. Invacare Infinity Series includes versatile modular seating, providing optimal rehab solutions. Invacare PinDot Series offers custom seating solutions personalized for challenged clients. The Company has also expanded its product line of seating products and wheelchairs for the pediatric market.

The standard product line includes manual wheelchairs, personal care products, home care beds, low-air-loss therapy products and patient transport products. Invacare's manual wheelchairs are sold for use inside and outside the home, institutional settings and public places. Its clients include people who are chronically or temporarily disabled and require basic mobility performance with little or no frame modification. Invacare manufactures and/or distributes a line of personal care products, including ambulatory aids, such as crutches, canes, walkers and wheeled walkers. The Company manufactures and distributes a range of manual, semi-electric and fully electric beds for home use under the Invacare brand name. Home care bed accessories include bedside rails, mattresses, overbed tables, trapeze bars and traction equipment. Invacare manufactures and markets a line of mattress overlays and replacement products, under the Invacare brand name. These products, which use air flotation to redistribute weight and move moisture away from patients, assist in the total care of those who are immobile and spend most of the time in bed.

Invacare manufactures and/or distributes home respiratory products, including oxygen concentrators, nebulizer compressors and respiratory disposables, sleep therapy products and portable compressed oxygen systems. Invacare home respiratory products are marketed under the Invacare brand name. The Invacare Venture HomeFill II Oxygen Compressor enables people to safely and easily make compressed oxygen in their home and store it in cylinders for future use.

The Company distributes numerous lines of branded medical supplies, including ostomy, incontinence, diabetic, wound care and miscellaneous home medical products, as well as home medical equipment aids for daily living. During the year ended December 31, 2004, Invacare introduced its own private-label brand of certain medical supplies.

Invacare, operating as Invacare Continuing Care Group, is a manufacturer and distributor of beds and furnishings for the long-term care markets. In addition, certain home medical equipment also is sold through this channel.

The Company also manufactures, markets and distributes many accessory products, including spare parts, wheelchair cushions, arm rests, wheels and respiratory parts. In some cases, the Company's accessory items are built to be interchangeable so that they can be used to replace parts on products manufactured by others.

Asia/Pacific Operations

The Company's Asia/Pacific operations consist of Invacare Australia, which imports and distributes the Invacare range of products and manufactures and distributes the Rollerchair range of custom power wheelchairs and Pro Med lifts, DecPac ramps and Australian healthcare equipment beds, furniture and pressure care products; Dynamic Controls, a New Zealand manufacturer of electronic operating components used in power wheelchairs and scooters; Invacare New Zealand, a manufacturer of wheelchairs and beds, and a distributor of a range of home medical equipment, and Invacare Asia Sales, which imports and distributes home medical equipment to the Asia markets.

European Operations

The Invacare European operations operate as a common market company with sales throughout Europe. Invacare manufactures and/or assembles both manual and power wheelchair products at Invacare UK Ltd. in the United Kingdom, Invacare Poirier S.A.S. in France, Invacare (Deutschland) GmbH in Germany, and Ulrich Alber Gmgh in Germany. Manual wheelchair products are also manufactured and/or assembled at Invacare Portugal, Invacare AG in Switzerland (the Kuschall Range) and Invacare Rea AB in Sweden. Beds and patient lifts are manufactured at EC-Hong A/S in Denmark. Personal care products are manufactured at Aquatec GmbH in Germany and Dolomite AB in Sweden.