Healthcare Industry News:  Balloon Dilatation Catheter 

Devices Orthopaedic Litigation

 News Release - April 17, 2006

Kyphon Responds to Lawsuit

SUNNYVALE, Calif., April 17 (HSMN NewsFeed) -- Kyphon Inc. (Nasdaq: KYPH ), a leader in minimally invasive treatment of spinal fractures, today announced a lawsuit brought by Medtronic, Inc. and related corporate entities against Kyphon Inc. for allegedly infringing three angioplasty dilatation catheter patents and a more recent patent relating to accessing and distracting the intervertebral disc space. The suit also asks for a declaratory judgment that a Medtronic "osteotome" does not infringe five of Kyphon's many patents covering various aspects of kyphoplasty, the minimally invasive procedure for treating spinal fractures that Kyphon pioneered in the late 1990s. The complaint was filed on April 13, 2006 in the United States District Court for the Northern District of California.

"From an initial review of the complaint, Kyphon strongly believes none of these claims has any merit," stated David Shaw, Kyphon's vice president, legal affairs and general counsel. "It seems obvious to us that our bone tamps are not Balloon Dilatation Catheters, which are typically used in percutaneous transluminal coronary angioplasty. We also believe there is no basis on which to seek a declaratory judgment, since we have not directly or indirectly threatened Medtronic with any of our own patents. We will vigorously defend these allegations and challenge Medtronic's inappropriate attempt to usurp our own ability to choose whether, and if so, when and how, to assert our own rights," Shaw concluded.

In November 2005, Dr. Harvinder Sandhu and Kyphon filed suit against Medtronic Sofamor Danek and several other related corporate entities in the United States District Court for the Western District of Tennessee seeking compensatory and punitive damages and injunctive relief for breach of contract and related covenants, trade secret theft, fraud and correction of inventorship of several patents and patent applications presently owned by Sofamor Danek, including U.S. Patent No. 6,676,665. A trial date has been set in that case for April 16, 2007.

About Kyphon Inc.

Kyphon develops and markets medical devices designed to restore spinal function using minimally invasive technologies. The company's KyphX line of products are used in balloon kyphoplasty, a minimally invasive procedure to treat spinal fractures caused by osteoporosis or cancer. For more information, visit Kyphon's Web site at

NOTE: Kyphon and KyphX are registered trademarks of Kyphon Inc.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements include, but are not limited to, those that use words such as "believes," "expects," "anticipates," "targets," "intends," "plans," "projects," and words of similar effect, and specifically include the company's future financial projections and anticipated business direction and performance. Forward-looking statements are based on management's current preliminary expectations and are subject to risks, uncertainties and assumptions, which may cause the company's actual results to differ materially from the statements contained herein. Information on potential risk factors that could affect Kyphon, its business and its financial results are detailed in the company's periodic filings with the Securities and Exchange Commission (SEC), including, but not limited to, those risks and uncertainties listed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Future Operating Results," which can be found in Kyphon's annual report on Form 10-K for the year ended December 31, 2005 filed with the SEC on March 3, 2006. Kyphon undertakes no obligation to release publicly any revisions to any forward- looking statements contained herein to reflect events or circumstances after the date hereof.

Source: Kyphon

Issuer of this News Release is solely responsible for its content.
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