News | March 26, 1999

STERIS CORPORATION TO EXPAND STERIS 20 PRODUCTION

MENTOR, Ohio, March 26 /PRNewswire/ -- STERIS Corporation (NYSE: STE) today announced plans to expand production of STERIS 20(TM) Sterilant Concentrate, its proprietary single use chemical sterilant component of the STERIS SYSTEM 1(R) Sterile Processing System, because of continued strong domestic and growing international market demand. Currently, the Company produces STERIS 20 in its Mentor, Ohio chemical packaging facility.

STERIS will add STERIS 20 production capabilities to the Company's extensive chemical operations in St. Louis, Missouri. A new production facility will also be established in Auburn (Sydney), Australia. The combined expansion will more than triple current capacity while reducing the supply risks from an unexpected disruption of production.

STERIS recently completed an extensive site selection process before choosing the production expansion locations. Australia was chosen for the first STERIS 20 plant outside the United States because of the Company's solid Australian market position and the geographic proximity to growing Asian markets.

Several potential sites for a new facility west of the Mississippi River were considered for the United States production expansion. Two highly attractive new site locations were thoroughly evaluated. The Company subsequently decided to modify its St. Louis facilities to accommodate STERIS 20 production rather than establish a completely new facility.

The Company will leverage the existing management support infrastructure while adding several new jobs to the outstanding direct labor workforce already in place. STERIS 20 produced in St. Louis will be directed primarily to Customers in the Western United States.

Commenting on the expansion projects, Bill R. Sanford, Chairman, President, and CEO, stated, "Customer demand for STERIS 20 Sterilant Concentrate has increased every quarter since STERIS SYSTEM 1, our site-of-use low temperature sterile processing system, was introduced in 1989. The current rate of growth in STERIS 20 sales is well in excess of our overall business growth, and we expect that to continue. STERIS SYSTEM 1 sales are proceeding at a record pace this quarter. Each new SYSTEM 1 creates additional long-term demand for the single use STERIS 20 consumable. In addition, the rapid development and adoption of new minimally invasive procedures requiring sterilization of heat sensitive medical devices is increasing the usage of STERIS 20 at existing installations."

Mr. Sanford continued, "We have previously expanded our highly automated Ohio production facilities on several occasions. The additional production facilities will provide greater capacity, flexibility, and backup, while reducing shipping times to Customers. We would expect to add STERIS 20 production facilities in other parts of the world, particularly Europe, as demand continues to grow."

STERIS Corporation is a leading provider of infection prevention, contamination prevention, microbial reduction, and surgical support systems, products, services, and technologies to health care, scientific, research, food, and industrial Customers throughout the world. The Company has over 4,500 Associates (employees) worldwide, including more than 1,700 direct sales, service, and field support personnel. Customer Support facilities are located in major global market centers with production operations in the United States, Canada, Germany, Finland, and Sweden.

This press release contains statements concerning certain trends and other forward-looking information affecting or relating to the Company and its industry that are intended to qualify for the protections afforded "forward- looking statements" under the Private Securities Litigation Reform Act of 1995. There are many important factors that could cause actual results to differ materially from those in the forward-looking statements. Many of these important factors are outside STERIS's control. Changes in market conditions, including competitive factors and changes in government regulations, could cause actual results to differ materially from the Company's expectations. No assurance can be provided as to any future financial results. Other potentially negative factors that could cause actual results to differ materially from those in the forward-looking statements include (a) the possibility that the continuing integration of acquired businesses will take longer than anticipated, (b) the potential for increased pressure on pricing that leads to erosion in profit margins, (c) the possibility that market demand will not develop for new technologies, products, and applications, (d) the potential effects of fluctuations in foreign currencies, and (e) the possibility of reduced demand, or reductions in the rate of growth in demand, for the Company's products. SOURCE STERIS Corporation

-0-                             03/26/99 /CONTACT:  Gerard J. Reis, 
Vice President Associate and Business Relations of STERIS, 
440-354-2600/ 

(STE)
CO: STERIS Corporation ST: Ohio, Missouri, Australia IN: HEA MTC
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