Healthcare Industry News:  Zimmer 

Devices Orthopaedic

 News Release - February 5, 2008

Zimmer to Expand Manufacturing Network

New Facility in Shannon, Ireland to Start Up in Late 2008

WARSAW, Ind., Feb. 5 (HSMN NewsFeed) -- Zimmer Holdings, Inc. (NYSE and SWX: ZMH News), a leader in the orthopaedics industry, announced today that it will expand its global manufacturing network by adding a 100,000 square foot plant in Shannon, Ireland.

"We are delighted to be adding a new Ireland facility to our global network," said David Dvorak, Zimmer Holdings President and CEO. "We are constantly assessing our worldwide operations and logistics network to maximize efficiency and customer service, and this project is a result of that process. We are grateful for the cooperation and encouragement of the national and local officials in Shannon and look forward to establishing a facility that utilizes the tremendous skills and expertise of the workforce to produce high technology medical devices."

Zimmer said it considered a number of sites before selecting Shannon, including its existing sites and other global locations. The Company expects to invest between $70 and 75 million (USD) over the next two years in its new facility in Shannon and plans to begin manufacturing operations in late 2008. Initial employment will be approximately 25 to 50 employees, with total employment expected to be approximately 250 in five years. At start-up, the facility will produce knee replacement implants, although other products could be added in the future. Shannon Development and Irish Development Agency officials provided incentives including tax rate adjustments and training grants; the Company did not disclose actual amounts.

Making the announcement in Ireland today, Minister for Enterprise, Trade and Employment, Micheal Martin T.D., said: "Zimmer's decision to establish at Shannon Free Zone adds significantly to Ireland's profile as a leading location for medical device companies in Europe. This investment is very welcome news for Shannon and was secured by Shannon Development with the assistance of IDA Ireland. Zimmer can be confident of finding highly skilled professionals and infrastructure of international standards in this part of the country. More and more companies are discovering the benefits of locating in regional centres throughout Ireland."

Shannon Development's Chief Executive, Kevin Thompstone, said: "This is a tremendous boost for Shannon; it is one of the largest projects to locate at the Shannon Free Zone in recent years. We are delighted that Zimmer have chosen Shannon. The Zimmer decision is the result of Shannon Development and IDA Ireland working to secure this project for Shannon. One of the key economic benefits of a project of this scale is the employment opportunities it presents for Irish graduates and professionals at all levels."

During the past several years, the Company has expanded its Warsaw, Indiana, manufacturing, research and development, and distribution facilities, adding approximately 600 new jobs. The Company currently employs about 2,400 in Warsaw.

About the Company

Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer is a worldwide leader in designing, developing, manufacturing and marketing orthopaedic reconstructive, spinal and trauma devices, dental implants, and related orthopaedic surgical products. Zimmer has operations in more than 25 countries around the world and sells products in more than 100 countries. Zimmer's 2007 sales were approximately $3.9 billion. The Company is supported by the efforts of more than 7,500 employees worldwide.

For more information about Zimmer, visit

Zimmer Safe Harbor Statement

This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 based on current expectations, estimates, forecasts and projections about the orthopaedics industry, management's beliefs and assumptions made by management. Forward-looking statements may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "assumes," "guides," "targets," "forecasts," and "seeks" or the negative of such terms or other variations on such terms or comparable terminology. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, our ability to successfully integrate acquired businesses, our compliance with the Deferred Prosecution Agreement through March 2009 and the Corporate Integrity Agreement through 2012, the impact of our enhanced healthcare compliance global initiatives and business practices on our relationships with customers and consultants, our market share and our overall financial performance, the outcome of the Department of Justice Antitrust Division investigation announced in June 2006, the outcome of the informal investigation by the U.S. Securities and Exchange Commission into Foreign Corrupt Practices Act matters announced in October 2007, price and product competition, rapid technological development, demographic changes, dependence on new product development, the mix of our products and services, supply and prices of raw materials and products, customer demand for our products and services, control of costs and expenses, our ability to form and implement alliances, international growth, governmental laws and regulations affecting our U.S. and international businesses, including tax obligations and risks, product liability and intellectual property litigation losses, reimbursement levels from third-party payors, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see our periodic reports filed with the U.S. Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports. Readers of this document are cautioned not to place undue reliance on these forward-looking statements, since, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this document.

Source: Zimmer

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