Hillenbrand Industries Announces Termination of Yorktowne Negotiations

BATESVILLE, Ind., July 24, 2007 – Hillenbrand Industries, Inc. (NYSE: HB) announced that its Batesville Casket Company business unit recently completed its due diligence related to the possible acquisition of Yorktowne Caskets, Inc., based in York, Pa., and has concluded that moving forward with acquisition negotiations would not be in the best interest of Hillenbrand's shareholders. Batesville subsequently learned that Yorktowne had sold an undetermined portion of its assets to Matthews International.

"While we regret not being able to move ahead with the acquisition of Yorktowne, we are eager to meet the needs of funeral directors and the families they serve through the binding supply agreement finalized earlier this year and normal Batesville Casket Company channels," stated Kenneth A. Camp, President and CEO of Batesville Casket Company.