Synthes Inc. : Synthes Announces Q1 2012 Sales Results with Growth of 2.1% in local currency

West Chester (PA), USA, April 25, 2012 Synthes (SIX: SYST.VX) today announced its First Quarter 2012 sales results with growth of 1.5% (2.1% in local currency). Global sales of US$ 997.5 million increased 1.5% (2.1% in local currency [LC]) vs. prior year (PY). Positive LC growth was achieved across all product groups in all regions outside North America. North America performance was challenged by ongoing weak economic conditions, with an unusually mild winter contributing to reduced Trauma related procedures. Europe achieved robust sales growth vs. PY due to innovative new products and quality service commitments despite the ongoing financial crisis and the effects of a milder than normal winter. Asia Pacific results were solid, especially considering the challenging pricing and reimbursement policy changes across several markets within the region. Rest of World (Latin America and Middle East & Africa) double-digit sales growth was fueled by strong performances in Latin America and the first delivery of a tender order from the Middle East. Synthes announced the signing of a license and development agreement with Kuros Biosurgery AG (Kuros), to commercialize Kuros’ synthetic matrix technology in certain fields. REGIONAL PERFORMANCE (First Quarter 2012) In North America, the milder than usual winter weather conditions negatively impacted Synthes’ Trauma growth performance due to the reduced number of weather-related fractures. In CMF, Synthes continued to benefit from a diversified portfolio showing strong growth in the core plating and Neuro segments with the Matrix family of systems. The Spine market continues to be challenged by difficult market conditions including declining procedural volumes, pricing pressures and reimbursement hurdles for the coverage of certain degenerative disc disease indications. Recent U.S. product approvals will allow re-entry into the corpectomy market, as well as a first time entry into the vertebral augmentation market. In Europe, Synthes experienced another solid quarter of sales growth in a challenging market environment. The continued commitment to launch innovative products and deliver exceptional service, with the goal of improving patient care, resonated well with the European region as Synthes continued to gain market share across all product groups. Asia-Pacific achieved solid high single-digit sales growth despite government-mandated price reductions and changes to reimbursement policies across several markets. The Trauma business continues to build in all markets. China, India, Korea and Taiwan delivered strong double-digit sales growth. In «Rest of World», Synthes continued to show strong double digit growth across the Latin America region despite an increasingly competitive market. The transition to a direct sales organization in Chile has been very successful and surpassed initial expectations. Additionally, the first delivery of a Middle Eastern tender order positively contributed to the performance. OUTLOOK 2012 will likely remain as challenging to the medical device industry as 2011, with continuing uncertainty surrounding the more mature markets. Nevertheless, Synthes remains focused on new product launches and continues investing in innovation and sales support 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. In April 2011 Synthes announced a definitive merger agreement with Johnson & Johnson and is expecting to complete the merger in the second quarter of 2012, subject to receipt of required regulatory approvals and other customary closing conditions.