Healthcare Industry News:  DePuy 

Devices Orthopaedic Neurosurgery Litigation

 News Release - November 20, 2006

Medtronic Wins Appeals Court Ruling on Largest Pedicle Screw Lines

MEMPHIS, Tenn.--(HSMN NewsFeed)--Medtronic, Inc. (NYSE:MDT ) today announced that in the case of DePuy Spine, Inc. and Biedermann Motech GMBH v. Medtronic Sofamor Danek, Inc. the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the District Court of Massachusetts that Medtronic's CD HORIZON® M8 and CD HORIZON® M10 multi axial screws do not infringe the DePuy '678 patent. This decision also applies to Medtronic's CD HORIZON® LEGACY(TM) multi axial screws. These products are some of Medtronic's largest selling spinal products and this decision means Medtronic will continue to supply them to surgeon customers.

The Court of Appeals also affirmed the District Court's determination that VERTEX® Reconstruction System screws, for use in the upper thoracic spine, do not literally infringe the '678 patent, but ruled that there is an issue of fact as to infringement under the doctrine of equivalents that can proceed to trial. Medtronic is confidant in its position on the VERTEX System and expects to prevail in a jury trial.

The court affirmed the jury's verdict that Medtronic's old-style CD HORIZON® MAS products, which are no longer sold in the U.S., infringed under the doctrine of equivalents. The company had previously reserved the $24.3 million judgment entered upon the jury's verdict.

"We are pleased that the court has ruled that our biggest selling multi axial screws do not infringe DePuy's patents," said Pete Wehrly, senior vice president and president of the Spinal and Biologics business at Medtronic. "We respect the intellectual property of others and expect them to do the same. We are also confident that when a jury hears our position on the VERTEX System, we will prevail on that complaint as well."

No court date has been set on the VERTEX System trial.

About Medtronic

Medtronic, Inc. (, headquartered in Minneapolis, is the global leader in medical technology - alleviating pain, restoring health, and extending life for millions of people around the world.

Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's Annual Report on Form 10-K for the year ended April 28, 2006. Actual results may differ materially from anticipated results.

Source: Medtronic

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