Synthes Reports First Nine Months and Third Quarter 2011 Sales Growth of 10% and 11%, respectively

Third Quarter 2011
Consolidated sales of US$ 1,007.0 million increased 11.0% (6.6% in LC) vs. PY.

Global quarterly revenue achieved the billion dollar milestone for the first time in the Company's history.

Sales growth gained momentum outside the U.S., fueled by strong double-digit growth in LC in CMF, Power Tools, Asia Pacific and Latin America, and solid single-digit growth in Trauma and Spine compared to Q2 2011.

Mid single-digit growth in North America despite ongoing weak macroeconomic conditions, coupled with pricing dynamics, which continued to challenge the business.

In Europe, strong sales growth was achieved in a more challenging market environment, primarily due to well-coordinated important new product launches along with the successful ongoing integration of Anspach power tools into our portfolio.

Asia Pacific realized accelerated sales growth momentum with continued solid double-digit sales growth and market share gains.

Rest of World sales experienced growth despite the one-time effect of the Middle Eastern tender order delivery in PY.

Michel Orsinger, President and CEO of Synthes, commented on the performance: Synthes sales performance maintained good momentum and reached new record levels in the third quarter of 2011 despite continued economic pressure in our largest, more mature markets. Synthes is well positioned to continue to adapt to and surpass the on-going challenges. We will fully utilize our current internal capabilities and talents to continue to deliver the superlative service that our customers expect from Synthes.

Regional Performance (Third Quarter 2011)
In North America, Synthes continued to deliver growth in Trauma despite a weak economic environment and an industry undergoing structural changes resulting in ongoing pricing pressures. In Trauma, Synthes continued to experience success with the VA-LCP Forefoot/Midfoot System, act on opportunities to improve patient care through successful new product launches, and increase market share through focused sales strategies and strategic partnerships. The company is excited about opportunities to further leverage Trauma's strengths, namely Synthes' relationships with surgeons and operating room personnel, product innovations and quality educational offerings. In CMF, the Thoracic Products, diversification into new lines, the strong Matrix facial plating platform, and MatrixNEURO System continued to produce double-digit sales growth. In Spine, worldwide sales growth performance was satisfactory given that this market continues to be challenged by difficult conditions including declining procedural volumes, pricing pressures and reimbursement hurdles for the coverage of certain degenerative disc disease indications. Synthes continued the expansion of its pedicle screw business fueled by the successful rollout of the MATRIX system. Additionally, the launch of the Vertecem Verebroplasty System allows Synthes access to the expanding market of vertebral compression fractures of the vertebral body.

In Europe, Synthes continued to record increased sales in all product groups. Trauma, Spine, CMF and Power Tools product groups continued to outperform market expectations. An innovative product pipeline, across all product groups, and an ongoing aggressive sales force expansion in emerging markets is supporting sustained growth in a soft market with strong price pressures. Additionally, the integration of Anspach into the Synthes sales organization has made good progress.

Asia Pacific achieved strong sales performance fueled by new product introductions in all product groups. Australia and New Zealand continued with growth at or greater than 15%, and high double-digit growth rates were experienced once again in the emerging markets. China, India, and Korea delivered particularly strong performances with sales growth above 20% in LC.

In Rest of World, Synthes grew at a strong double-digit rate in the Latin American region, with major volume contributions in the larger markets of Brazil and Colombia. In Chile we had a successful transition from the distributor model to direct sales by a Synthes-owned organization, with very positive feedback from the customer base on the level of service and support. New product introductions and the continued emphasis that Synthes places on product quality and reliability will continue to strengthen our market leadership position, despite increasing competition and regulatory challenges. The overall growth of this reporting segment was nevertheless reduced because the Middle Eastern tender business of the previous year's third quarter did not re-occur in Q3 2011. These tenders typically take place every two years.

Outlook
Synthes is committed to gaining market share in all four product groups globally, primarily by focusing on new product launches and continued investing in innovation and sales equipment. The company will continue to develop and implement productivity gain initiatives and also continue to adapt the organization in order to address the challenging market environment.

Contact
Synthes GmbH Glutz Blotzheim-Strasse 1-3 4500 Solothurn Tel. 032 720 40 60 Fax 032 720 40 61 verkauf.schweiz@synthes.com