Healthcare Industry News:  Orthofix 

Devices Orthopaedic

 News Release - February 27, 2006

Orthofix Announces Restructuring of International Operations and Acquisition of International Medical Supplies Distribution GmbH

HUNTERSVILLE, N.C.--(HSMN NewsFeed)--Feb. 27, 2006--Orthofix International N.V. (NASDAQ: OFIX ; the Company) announced today that it is restructuring its International business operations to better serve customers outside the United States. The move will create three distinct business zones: Europe, Asia/Pacific and Emerging Markets, which will be organized to address customer needs and opportunities within specific geographic markets. This realignment will further enhance the Company's ability to focus on core market segments, while also ensuring regional customer requirements are incorporated into the design and distribution of its products and therapies.

Alan Milinazzo, Orthofix's Chief Operating Officer, who will succeed CEO Charles Federico in April, commented that, "In addition to providing enhanced customer and product service, this structure will allow us to leverage our distribution channel to its fullest, creating synergies at the country and customer level." Milinazzo added, "This move also allows our field organization to focus purely on satisfying customer needs at the local level, providing additional opportunities to grow both our market presence and our market share."

In addition to the restructuring, the Company also announced the acquisition of International Medical Supplies Distribution GmbH (IMeS), based in Cologne, Germany. The acquisition is primarily expected to enhance the growth opportunities for the German and Austrian operations of BREG, a wholly owned subsidiary of Orthofix specializing in bracing, cold therapy and pain management products, by enhancing its market visibility, improving the control over distribution of its products and increasing profit margins.

"We believe there are numerous opportunities for Orthofix's profitable expansion in Europe, and this acquisition, on top of our restructuring, is a good opportunity for us to leverage our presence in markets where our BREG subsidiary currently delivers products," said Charles W. Federico, Orthofix's Group President and CEO.

Milinazzo added, "Our long-term growth strategy includes not only organic growth through new product introductions, but also through opportunistic acquisitions in markets where we believe there will be increased patient demand in the coming years. This acquisition strategy involves a targeted approach intended to address the specific needs of various regional health care communities in Europe."

Both the acquisition and the restructuring will be addressed further in a conference call scheduled for February 28th, at 11:00 a.m. ET to discuss the Company's 4th quarter and full-year 2005 earnings and its outlook for 2006.

About Orthofix International, N.V.

Orthofix International N.V., a global diversified orthopedic products company, offers a broad line of minimally invasive surgical, as well as non-surgical, products for the spine, reconstruction, and trauma market sectors that address the lifelong bone-and-joint health needs of patients of all ages, helping them achieve a more active and mobile lifestyle. Orthofix's products are widely distributed around the world to orthopedic surgeons and patients via Orthofix's sales representatives and its subsidiaries, including BREG, Inc., and via partnerships with other leading orthopedic product companies, such as Medtronic Sofamor Danek and Kendall Healthcare. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Orthopedic Research and Education Foundation, the Cleveland Clinic Foundation, Innovative Spinal Technologies and the National Osteoporosis Institute. For more information about Orthofix, please visit

Forward-Looking Statements

This news release contains certain forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements concerning the growth prospects, projections, financial condition, results of operations and businesses of Orthofix and its subsidiary, BREG, and are based on management's current expectations and estimates and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Factors that could cause or contribute to such differences may include, but are not limited to, unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, risks relating to the protection of intellectual property, changes to the reimbursement policies of third parties, changes to governmental regulation of medical devices, the impact of competitive products, changes to the competitive environment, the acceptance of new products in the market, conditions of the orthopedic industry and the economy and other factors described in the most recent report on Form 10-K and other periodic reports filed by Orthofix with the Securities and Exchange Commission.

Source: Orthofix

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