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Stryker to Acquire Surgical Dynamics Spinal Business for $135 Million in Cash

06/04/2002

KALAMAZOO, Mich., June 4 /PRNewswire/ -- Stryker Corporation (NYSE: SYK) announced today that it has entered into a definitive agreement to acquire the spinal implant business of Surgical Dynamics Inc. from Tyco International Ltd. (NYSE: TYC; LSE:TYI; BSX:TYC) for $135 million in cash.

Surgical Dynamics Inc., located in Norwalk, Connecticut, had spinal product sales of $56 million for the year ended December 31, 2001. Its lead products are the Ray Threaded Fusion Cage(TM) along with thoracolumbar and cervical spinal fixation devices. Following the acquisition, Stryker will become a full-line provider of spinal implant devices with approximately 11% of the rapidly growing $1.3 billion worldwide spinal implant market.

The acquisition will be financed with existing credit facilities and is expected to be completed within 30 days, subject to clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act.

The impact on Stryker's earnings is expected to be neutral for the second half of 2002 and accretive beginning in 2003.

Goldman, Sachs & Co. served as financial advisor to Stryker.

Conference Call

The Company will conduct a conference call for financial analysts to discuss this acquisition at 9:00 a.m., Eastern Time, on June 5, 2002. To hear the call, dial 888-328-2939 or access the Company's website at www.strykercorp.com . A recording of the call may also be accessed from 11:00 a.m., Eastern Time, on June 5 until 11:00 a.m., Eastern Time, on June 7, 2002. To hear this recording dial 800-633-8284 (domestic) or 858-812-6440 (international) and enter the registration number 20662602.

Stryker Corporation develops, manufactures and markets specialty surgical and medical products, including orthopaedic reconstructive, trauma, spinal and craniomaxillofacial implants, the bone growth factor osteogenic protein-1, powered surgical instruments, endoscopic systems, patient care and handling equipment for the global market, and provides outpatient physical therapy services in the United States. For more information about Stryker Corporation, visit www.strykercorp.com .

The information contained in this press release may contain information that includes or is based on forward-looking statements within the meaning of the federal securities laws that are subject to risks and uncertainties. Factors that could cause Stryker's actual results to differ from its expectations include, but are not limited to, unanticipated issues arising in connection with the integration process for the acquisition, an inability to retain customers and maintain expected revenue and profit levels for the acquired business and the additional cautionary factors discussed in our filings with the Securities and Exchange Commission.
SOURCE Stryker Corporation
Web site: http: //www.strykercorp.com
CONTACT: David J. Simpson, Vice President, Chief Financial Officer and Secretary of Stryker Corporation, +1-616-385-2600

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