Results for the $pi + N to Lambda, Sigma + K$ reactions in nuclear matter of Ref. nucl-th/0004011 are presented. To evaluate the in-medium modification of the reaction amplitude as a function of the baryonic density we introduce relativistic, mean-field potentials for the initial, final and intermediate mesonic and baryonic states in the resonance model. These vector and scalar potentials were calculated using the quark meson coupling model. Contrary to earlier work which has not allowed for the change of the cross section in medium, we find that the data for kaon production at SIS energies are consistent with a repulsive $K^+$-nucleus potential.
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