Synthes 2008: Record Sales of US$ 3,192.5 Million Grew 15.7%, and Record Net Earnings Grew 20.0% (13.4% and 15.7% in local currencies, respectively)

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West Chester (PA), USA, February 18, 2009

Synthes (SWX: SYST.VX) today announced its Full Year 2008 financial
results with record Sales and record Net Earnings.

Fourth Quarter 2008

* Global sales were US$ 811.3 million, +9.9% vs. prior year (PY)
(14.4% in local currencies)
* Double-digit local currency sales growth was once again achieved
across all geographical regions and product groups
* Continued accelerated sales growth and market share gains in
Spine globally

Full Year 2008

* Global sales at US$ 3,192.5 million increased by US$ 432.8
million ($371.0 million in LC)
* Net earnings of US$ 735.0 million grew in excess of double-digit
sales growth
* Double-digit sales growth in all geographical regions and
product groups driven by increased penetration of new products,
sales force expansion, and increased educational efforts
* Strong gross margin of 82.7%
* Income tax rate decreased by 3.7 pps vs. PY to 30.3%
* Strong cash generation resulted in a record cash balance of US$
871.5 million, 60% growth vs. PY
* Other achievements include the settlement of the TFN
(Trochanteric Fixation Nail) case, and the launch of over 90 new
products, including ProDisc®-C in the U.S.

Michel Orsinger, President and CEO of Synthes, comments on the
performance:
"Our solid performance was achieved thanks to the entire
organization's focus on new product launches, sales force expansion,
and education. In today's challenging economic environment, our
conscious management of resources allowed Synthes to deliver yet
another record year with strong double-digit earnings growth and end
the year with a strong debt-free balance sheet. We are excited about
the opportunity to continue growing and strengthening Synthes' market
position in 2009, while improving patient care worldwide."

FINANCIAL SUMMARY

Sales Results

+-------------------------------------------------------------------+
| | Fourth Quarter 2008 (October - December) |
|------------------------+------------------------------------------|
| Consolidated Net Sales | | | % Change | % Change |
| (in US$ millions) | 2008 | 2007 | (in US$) | (in local |
| | | | | currency)* |
|------------------------+--------+--------+-----------+------------|
| North America | 497.5 | 447.0 | 11.3% | 12.0% |
|------------------------+--------+--------+-----------+------------|
| Europe | 180.3 | 177.9 | 1.4% | 13.9% |
|------------------------+--------+--------+-----------+------------|
| Asia Pacific | 83.7 | 73.3 | 14.1% | 15.4% |
|------------------------+--------+--------+-----------+------------|
| Rest of World | 49.8 | 39.8 | 24.9% | 41.2% |
|------------------------+--------+--------+-----------+------------|
| Total | 811.3 | 738.0 | 9.9% | 14.4% |
+-------------------------------------------------------------------+

+-------------------------------------------------------------------+
| | Full Year 2008 (January - December) |
|-----------------------+-------------------------------------------|
| Consolidated Net | | | % Change | % Change |
| Sales | 2008 | 2007 | (in US$) | (in local |
| (in US$ millions) | | | | currency)* |
|-----------------------+---------+---------+----------+------------|
| North America | 1,922.2 | 1,721.0 | 11.7% | 11.7% |
|-----------------------+---------+---------+----------+------------|
| Europe | 756.1 | 637.3 | 18.6% | 13.4% |
|-----------------------+---------+---------+----------+------------|
| Asia Pacific | 309.0 | 248.4 | 24.4% | 16.8% |
|-----------------------+---------+---------+----------+------------|
| Rest of World | 205.2 | 153.0 | 34.1% | 28.1% |
|-----------------------+---------+---------+----------+------------|
| Total | 3,192.5 | 2,759.7 | 15.7% | 13.4% |
+-------------------------------------------------------------------+

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

Key Financial Results

+-------------------------------------------------------------------------------+
|Consolidated | | | | | | |
|Operations | | | | | % | % Change |
|in US$ millions |Jan-Dec | As a % | Jan-Dec | As a % | Change | (in local |
|(except no. of | 2008 |of Sales | 2007 |of Sales |(in US$)| currency)* |
|employees and per | | | | | | |
|share data) | | | | | | |
|------------------+--------+---------+---------+---------+--------+------------|
|Net Sales | | 100.0%| 2,759.7| 100.0% | | 13.4%|
| |3,192.5 | | | |15.7% | |
|------------------+--------+---------+---------+---------+--------+------------|
|Gross Profit | | 82.7%| 2,234.7| 81.0%| | 14.5%|
| |2,638.7 | | | |18.1% | |
|------------------+--------+---------+---------+---------+--------+------------|
|Operating Income | | 33.8%| 904.6| 32.8%| | 15.6%|
| |1,080.1 | | | |19.4% | |
|------------------+--------+---------+---------+---------+--------+------------|
|Net Earnings | | 23.0%| 612.6| 22.2%| | 15.7%|
| |735.0 | | | |20.0% | |
|------------------+--------+---------+---------+---------+--------+------------|
|Earnings per share| | | | | | 15.7%|
| |6.19 |n/a |5.16 |n/a |20.0% | |
|------------------+--------+---------+---------+---------+--------+------------|
|No. of Employees| | | 9,070| | | |
|on Dec. 31st |9,947 |n/a | |n/a |9.7% |n/a |
|------------------+--------+---------+---------+---------+--------+------------|
|Capital | | | 223.1| | | 13.0%|
|Expenditures |261.1 |n/a | |n/a |17.0% | |
|------------------+--------+---------+---------+---------+--------+------------|
|Free Cash Flow | | | 602.0| | | -21.9%|
| |497.2 |n/a | |n/a |-17.4% | |
+-------------------------------------------------------------------------------+

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

REGIONAL PERFORMANCE (Fourth Quarter 2008)

North America achieved double-digit growth during the fourth quarter.
Spine's performance continued to be very strong primarily as a result
of new product introductions and sales force expansion. Trauma and
Cranio-Maxillofacial (CMF), both market leaders in the US, generated
solid growth.

In Europe, Synthes continued to gain market share with double-digit
local currency growth in all product groups (Trauma, Spine and CMF).
The growth was fueled by the ongoing expansion of the sales force,
increased educational offerings and by products like the LCP (Locking
Compression Plate) portfolio, PFNA (Proximal Femoral Nail) in Trauma,
and Pangea in Spine. Eastern Europe continued to deliver a high
double-digit growth rate.

Asia Pacific once again achieved double-digit growth across all
product groups, and gained market share. Special effort was put
behind sales force expansion and increasing the offering for surgeon
education activities. China and India maintained strong momentum.

Rest of World growth was positively impacted by strong growth in the
Middle East and Latin America, particularly in Brazil, Colombia and
Mexico.

FINANCIAL PERFORMANCE (Second Half 2008)

Second half 2008 represents an improvement vs. first half 2008: Local
currency sales growth improved to 14.2% (vs. 12.6%), whereas
operating expenses (as a percentage of sales) declined to 48.1% (vs.
49.5%). Earnings growth of 14.8% slightly exceeded sales growth (in
local currencies) despite FX losses (vs. FX gains in H2 2007) and the
one-time payment received in H2 2007 from the Globus Medical
litigation settlement.

FINANCIAL PERFORMANCE (Full Year 2008)

Full year 2008 gross profit margin of 82.7% (as a percentage of
sales) improved vs. full year 2007 of 81.0% due to manufacturing
productivity initiatives, lower inventory obsolescence provisions and
FX rate changes.

Operating expenses in local currencies (as a percentage of sales)
were flat vs. prior year. Productivity improvements offset increased
investments in the business supporting sales force expansion and
increased education. Higher royalty expenses (primarily paid in Swiss
francs) as a percentage of sales resulted from the strengthening
Swiss franc vs. the U.S. dollar.

Other Income (Expense) was negatively impacted by foreign exchange
losses (vs. gains in the prior year), primarily a result of the
strengthening Swiss Franc. Furthermore, the comparison to prior year
was negatively impacted by the one-time payment received in H2 2007
from the Globus Medical litigation settlement.

Improvements in the income tax rate to 30.3% (vs. 34.0%) were
achieved due to tax planning efforts, changes in tax legislation and
settlement of tax contingencies.

Strong net earnings growth exceeded sales growth despite the impact
of unfavorable "other income (expense)" items.

Capital Expenditures of US$ 261.1 million reflect Synthes'
investments in its future growth. Sales force equipment investments
of US$ 173.4 million (implant and instrument sets) represent an
increase of 25% vs. prior year. Sales force investments are related
to Synthes' continued commitment to sales force expansion and new
product launches.

Synthes' net cash flow of US$ 326.7 million increased 28.2% vs. prior
year, resulting in a cash balance of $871.5 million.

In 2008, Synthes increased its staffing by almost 900 employees. Over
80% of the increase included sales force and manufacturing personnel.
On December 31, 2008 Synthes employed 9,947 employees worldwide.

Dividend Approval

The Board of Directors of Synthes, Inc. has approved a dividend of
CHF 1.10 per share for the year 2008 payable on April 30, 2009. The
stock will trade ex-dividend on March 23, 2009. Stock positions held
on the record date, March 25, 2009, are entitled to dividend
payments.

PRODUCT GROUP DEVELOPMENTS (Fourth Quarter 2008)

TRAUMA
Significant growth contributors in Trauma included the Trochanteric
Fixation Nail (TFN) and the PFNA (Proximal Femoral Nail), both
femoral nails for the treatment of common fractures of the upper leg.
The LCP (Locking Compression Plate) platform continued to contribute
to growth.

Significant new products launched include the TomoFix Medial Distal
Femur Plates, which are part of the TomoFix Osteotomy System. The
plate addresses degenerative conditions of the upper knee.

SPINE
Synapse, Pangea, Zero-P and SynFix-LR systems were the key
contributors to the Spine's division growth. 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 double-digit growth globally, with significant growth
realized in Europe, Asia Pacific and Latin America.

CMF was fueled by continued growth of its Matrix product lines.
Matrix is a comprehensive system of plates, screws, and
instrumentation for complete craniofacial treatment. MatrixNEURO, for
neurosurgical fixation, and MatrixMIDFACE, for plating the midface
and craniofacial skeleton, continue to be significant growth
contributors. The Matrix product lines were further expanded with the
release of MatrixMANDIBLE and the MatrixMIDFACE Pre-formed Orbital
Plates, both of which are gaining wide clinical acceptance.

OUTLOOK

Synthes remains cautiously optimistic for the future with a goal of
achieving low double-digit local currency sales growth in 2009.

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.

2008 Annual Report
The 2008 Annual Report can be downloaded on
http://www.synthes.com/html/Financial-Reports.4355.0.html.

Internet-Webcast
Today's Investor and Media Conference at 2:00 pm CET will be webcast
live:
http://event.meetingstream.com/r.htm?e=132425&s=1&k=559724126F49669480A25125AD7413D8.
A recording will be available on the same website as of 5:00 pm CET.

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: investor.relations@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.

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Synthes Inc.
Glutz-Blotzheim-Strasse 3 Solothurn

ISIN:
US87162M4096; Index: SBIOM, SLCI, SLIFE, SMI, SMIEXP, SPI;
Listed: Main Market in SIX Swiss Exchange;
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