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Synthes Continues Strong Performance With Third Quarter 2008 Sales Growth of 17.2% (14.0% in Local Currency)

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------




Synthes (SWX: SYST.VX) today announced its Third Quarter and First
Nine Months 2008 sales results with growth of 17.2% and 17.8%,
respectively (14.0% and 13.1%, respectively, in local currency).


Third Quarter 2008

* Consolidated sales were US$ 807.7 million
* Double-digit sales growth was once again achieved across all
geographical regions and product groups
* Accelerated sales growth experienced by Spine globally
* New product introductions, continued sales force expansion and
investments in education and field sales equipment continue to be
key contributors to positive results


First Nine Months 2008

* Consolidated sales were US$ 2,381.2 million
* Global Trauma growth remained stable
* Asia Pacific, "Rest of World" and global Spine accelerated
revenue growth
* Other achievements include ProDisc®-C launch in the U.S. and
the settlement of the Trochanteric Fixation Nail (TFN) case



Michel Orsinger, President and CEO of Synthes, commented on the
performance:
"We are very pleased to have produced another strong quarter of
growth which spans all regions and product groups. Synthes continues
to gain global market share driven primarily by new product
introductions, a knowledgeable and customer-focused sales force, and
high quality educational activities."



SALES RESULTS (unaudited)


+----------------------------------------------------------------+
| | Third Quarter 2008 (July - September) |
|------------------------+---------------------------------------|
| Consolidated Net Sales | | | % Change | % Change |
| (in US$ millions) | 2008 | 2007 | (in US$) | (in local |
| | | | | currency)* |
|------------------------+-------+-------+----------+------------|
| North America | 481.2 | 431.7 | 11.5% | 11.4% |
|------------------------+-------+-------+----------+------------|
| Europe | 188.6 | 156.1 | 20.9% | 12.9% |
|------------------------+-------+-------+----------+------------|
| Asia Pacific | 75.4 | 60.6 | 24.3% | 17.7% |
|------------------------+-------+-------+----------+------------|
| Rest of World | 62.5 | 40.8 | 53.3% | 39.5% |
|------------------------+-------+-------+----------+------------|
| Total | 807.7 | 689.2 | 17.2% | 14.0% |
+----------------------------------------------------------------+




+-------------------------------------------------------------------+
| | First Nine Months 2008 (January - September) |
|--------------------+----------------------------------------------|
| Consolidated Net | | | % Change | % Change |
| Sales | 2008 | 2007 | (in US$) | (in local |
| (in US$ millions) | | | | currency)* |
|--------------------+----------+----------+-----------+------------|
| North America | 1,424.7 | 1,274.0 | 11.8% | 11.5% |
|--------------------+----------+----------+-----------+------------|
| Europe | 575.8 | 459.4 | 25.3% | 13.2% |
|--------------------+----------+----------+-----------+------------|
| Asia Pacific | 225.3 | 175.1 | 28.7% | 17.5% |
|--------------------+----------+----------+-----------+------------|
| Rest of World | 155.4 | 113.2 | 37.3% | 23.4% |
|--------------------+----------+----------+-----------+------------|
| Total | 2,381.2 | 2,021.7 | 17.8% | 13.1% |
+-------------------------------------------------------------------+

* Local currency: 2008 results translated at 2007 foreign exchange
rates



REGIONAL PERFORMANCE (Third Quarter 2008)

The company achieved double-digit sales growth in North America
during the third quarter. The Spine product group was a major
contributor to the region's growth primarily as a result of new
product introductions and accelerated sales force expansion. Trauma
grew at a solid rate in Q3 2008, versus a strong Q3 2007 base.

Europe continued to post strong double-digit sales growth driven
primarily by volume growth. The LCP platform for Trauma and the
Pangea system for Spine continued to be strong performers and
contributors to success. CMF maintained sales growth momentum,
primarily due to mid-face and neurosurgery products. Italy, Spain,
France and Austria were key growth contributors and realized
significant gains over the previous year.

Asia Pacific continued to achieve robust double-digit growth across
all product groups. The region's high-teens growth rate was fueled by
strong performances in all major countries, including China and
India. Also, Japan grew double-digit despite the impact of a
government-mandated price cut in April 2008.

Rest of World growth was positively impacted by additional shipments
of a tender order to the Middle East. Latin America also continued
with strong performance, posting attractive double-digit growth rates
for all three product groups.



PRODUCT GROUP DEVELOPMENTS (Third Quarter 2008)


TRAUMA
Trauma's growth in the third quarter was driven by the TFN
(Trochanteric Fixation Nail) and the PFNA (Proximal Femoral Nail),
both femoral nails for the treatment of common fractures of the upper
leg. The ongoing expansion of the LCP (Locking Compression Plate)
platform continues to contribute to growth.

Significant new products launched in the third quarter include the
EPOCA Shoulder Prosthesis (in the U.S.), the LCP Wrist Fusion system
and the Headless Compression Screw line extension. The EPOCA Shoulder
Prosthesis system is used for hemi and total shoulder arthroplasty
and offers multiple implant options for the fixation of the shoulder.
The LCP Wrist Fusion system represents an expansion of our locked
plating offering. The new Headless Compression Screw line extension
increases our offering for the fixation of fractures and non-unions
of small bones.


SPINE
Synapse, Pangea, Zero-P and SynFix-LR systems were the key
contributors to Spine's encouraging performance.
Synapse is a comprehensive set of instruments and implants designed
for posterior stabilization of the upper spine. The implants provide
the flexibility required to accommodate variations in patient
anatomy, therefore, satisfying the preferences of numerous surgeons
while simplifying the procedure. Pangea is a pedicle screw system
used to stabilize degenerated lumbar spine segments. Zero-P is
designed as a zero-profile plate/spacer combination with screws to
provide similar stability to a traditional cervical plate and
interbody spacer. SynFix-LR, a cage with screws to replace and fuse a
diseased intervertebral disc, provides clinical superiority with its
unique anterior-only access.

Additionally, the ProDisc®-Total Disc Replacement systems (both
lumbar and cervical) continued to gain traction in the U.S. market.


CMF
CMF produced high double-digit growth in Europe, Asia Pacific and
"Rest of World".
MatrixNEURO and MatrixMIDFACE continued to gain clinical acceptance
and fuel growth for this product group. MatrixNEURO is a cranial
plating system that offers a complete line of plates, screws and
instrumentation designed specifically for neurosurgical fixation, and
MatrixMIDFACE is a comprehensive plating system for the midface and
craniofacial skeleton.



Synthes: A leading medical device company
Synthes is a leading global medical device company. We develop,
produce and market instruments, implants and biomaterials for the
surgical fixation, correction and regeneration of the human skeleton
and its soft tissues.

Financial Analyst Phone Conference
For details about today's Financial Analyst Phone Conference at 2.30
PM CEST please refer to the Investor Relations Calendar on
http://www.synthes.com/html/?id=7326.

Image Bank
A selection of product and company images can be found on
http://www.synthes.com/html/Media-Corner.7325.0.html?&L=0.

For further information please contact
Gilgian Eisner, Investor Relations, Synthes, Inc.
Phone +41 32 720 4745, Fax +41 32 720 4811
Email: ir.info@synthes.com
http://www.synthes.com



Restrictions Subject to US Securities Law
Synthes, Inc. management believes certain statements in this media
release may constitute "Forward-Looking Statements" within the
meaning of the "Private Securities Litigation Reform Act of 1995".
These statements include but are not limited to those with respect to
the potential for Synthes to offer new products and market existing
ones, as well as the expected sales and sales growth of Synthes.
These statements are made on the basis of management's views and
assumptions regarding future events and business performance as of
the time the statements are made. Actual results may differ
materially from those expressed or implied. Such differences may
result from the ability of Synthes to successfully develop and
introduce new products and services and market existing products and
services in a competitive marketplace and changes in the economic
conditions that may affect the performance of the operations of
Synthes. In addition, changes in competitive conditions and
regulatory developments may affect future business performance, and
changing market conditions may affect the valuation of Synthes
securities.
In addition, it should be noted that past financial and operational
performance of the company is not necessarily indicative of future
financial and operational performance. Synthes undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
The securities of Synthes have been offered and sold outside the
United States and have not been and will not be registered under the
U.S. Securities Act of 1933, as amended ("Securities Act"). Such
securities may not be offered, sold or transferred in the U.S. or to
U.S. Persons (as defined in the regulations of the Securities Act),
except pursuant to a registration statement filed under the
Securities Act or under an applicable exemption under the Securities
Act. Hedging transactions involving such securities may not be
conducted unless in compliance with the Securities Act. The Synthes
securities are deemed "Restricted Securities" as that term is defined
in Rule 144 under the Securities Act.



--- End of Message ---

Synthes Inc.
Glutz-Blotzheim-Strasse 3 Solothurn

ISIN:
US87162M4096; Index: SBIOM, SLCI, SLIFE, SMI, SMIEXP, SPI;
Listed: Main Market in SWX Swiss Exchange;
Copyright © Hugin AS 2008. All rights reserved.



 
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