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1Q:06 Final Performance Summary BY HUYEN NGUYEN, MAY 25, 2006

Final results for the 26 publicly-traded orthopedic companies* in 1Q:06 showed that orthopedic sales for first quarter increased by 9.2%, as reported. Now that Medtronic has reported its spine revenues, total aggregated sales for those 26 companies came in at $6.3 billion compared to $5.7 billion in 1Q:05.

During the quarter, currency exchange has a materially negative impact on these results. The table below depicts the top seven orthopedic companies generating 88% of sales, or $5.5 billion of the aggregated $6.3 billion. The other 19 public-traded orthopedic companies took in $723 million of sales in 1Q:06. Stripping out the negative currency exchange rate, we estimate first quarter growth would have been at least 11% or low double digit rate. Taking into account for constant currency consideration, we estimate that the orthopedic device market will be growing 12% for the remainder of the year.

Top Seven Ortho Cos. Sales Growth (%)
  Company As
Reported
Constant
Currency
Diff.
Medtronic Spine Division 16.9% 18.0% 1.0%
Synthes 14.6% 17.4% 2.8%
Stryker 9.8% 12.3% 2.5%
DePuy (JNJ) 4.6% 8.0% 3.0%
Biomet 5.0% 8.0% 3.0%
Zimmer Holdings 3.9% 7.0% 3.0%
Smith and Nephew plc 2.4% 6.0% 3.6%
Total Average Growth 8.2% 11.0% 2.7%


  1Q:06 vs. 1Q:05 As Reported Revs ($mm)
      Company 1Q:06 1Q:05 % Chg
1 - Medtronic Spine Division 582.0 498.0 17%
2 - Synthes 576.4 502.9 15%
3 - Stryker 1320.9 1202.5 10%
4 - Biomet 506.3 482.0 5%
5 - DePuy (JNJ) 1039.0 993.0 5%
6 - Zimmer Holdings 860.4 828.5 4%
7 - Smith and Nephew plc 643.0 628.0 2%
     Other 723.5 588.1 23%
Top Seven 5,528 5,135 8%
Total Aggregated Sales 6,252 5,723 9%

* Stryker, DePuy, Zimmer, Smith & Nephew, Medtronic (Spine Division), Synthes, Biomet, Kyphon, Encore, Exactech, Wright Medical, dj Orthopedics, Orthofix, ArthroCare, Ossur, LifeCell, CryoLife, Osteotech, NuVasive, CryoLife, Regeneration Technologies, Orthovita, IsoTis Orthobiologics, Anika, aap Implantate, OrthoLogic

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