ArthroCare Expands Sports Medicine Product Lines for Knee and Shoulder Surgery.

Business Editors/Health/Medical Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 10, 2004

Company to Distribute BiLok ST Screw for ACL Reconstructions;

Introduces ParaLOK Anchor for Shoulder Surgery

ArthroCare(R) Corp. (Nasdaq:ARTC), a multi-business medical device company that develops products based on its patented Coblation(R) technology, announced today it has expanded its Sports Medicine product lines for knee and shoulder surgeries.

ArthroCare will market and distribute Biocomposites' BiLok(R) ST screw for anterior cruciate ligament (ACL) reconstruction. This distribution agreement is part of ArthroCare's previously announced partnership with Biocomposites, a Staffordshire, England company that designs, manufactures and distributes devices for bone grating and sports medicine. ArthroCare is the worldwide distributor of the company's BiLok family of ACL products.

The BiLok ST screw is designed for physicians who prefer to use hamstring tendons in a looped bundle for ACL reconstruction. The use of hamstrings in these procedures is gaining acceptance among orthopedic surgeons because of improved patient cosmesis, quicker patient recovery and lower morbidity compared to bone-tendon-bone (BTB) grafts or allografts.

"Hamstring implantation techniques are used in approximately one third of the 300,000 ACL reconstructions performed annually in the United States," said Jim Pacek, president of ArthroCare's Sports Medicine business unit. "The addition of the BiLok ST expands our line of sports medicine products for ACL reconstruction. BiLok ST is part of a family of high-performance composite devices that have five years of positive clinical experience in the United States and Europe."

BiLok Composite -- Turning Implants Into Bone

The BiLok ST screw is manufactured using a proprietary process where calcium salts are dispersed uniformly throughout the device and onto the surface, where they are available as a scaffold for in-growth of new bone. Over time, this osteoconductive healing response fully absorbs the anchor, converting the implant itself into new bone. This process creates a stronger fixation of the tendon -- compared to traditional single-polymer absorbable materials or metal anchoring devices or screws.

ArthroCare Introduces ParaLOK(TM) Anchor for Shoulder Surgery

ArthroCare also introduced its ParaLOK anchor for shoulder surgery, which will be available in the second quarter of 2004. It is designed for the 400,000 patients in the United States annually who undergo shoulder surgery for torn rotator cuffs or procedures to treat shoulder instability, including Bankart repairs.

ParaLOK anchors are machined from titanium and used to attach, or anchor, torn tissue onto bone. The product will be marketed with a complete system of drivers and taps that offer a variety of convenience features for surgeons to make implantation quick and precise. For example, a patented parabolic eyelet configuration permits smooth suture movement and a unique thread design makes ParaLOK easy to implant with extremely high pullout resistance. ParaLOK will be offered in both three and five millimeter diameters.

"ParaLOK expands ArthroCare's line of products for shoulder surgery, which already includes a full line of cannulae, retractors and ArthroWands for soft tissue ablation, such as the market-leading TurboVAC(R) and new UltraVAC(TM)," said Michael A. Baker, president and chief executive officer for ArthroCare. "The addition of the BiLok ST and ParaLOK anchor further expand and support our commitment to providing surgeons with a complete system of tissue anchors and fixation devices for knee and shoulder reconstructions."

ABOUT ARTHROCARE

ArthroCare Corp. (www.arthrocare.com), headquartered in Sunnyvale, Calif., is a multi-business medical device company that develops, manufactures and markets minimally invasive soft tissue surgical products based on its patented Coblation technology. Coblation uses low-temperature radiofrequency energy to gently and precisely dissolve rather than burn soft tissue, minimizing damage to healthy tissue. ArthroCare targets a multi-billion dollar market opportunity across several medical specialties, significantly improving surgical procedures and enabling new, minimally invasive procedures. ArthroCare's Coblation-based devices have been used in more than 2.5 million surgical procedures worldwide. The company has developed and marketed Coblation-based products for arthroscopic, spine/neurologic, ear, nose and throat, cosmetic, urologic, gynecologic and laparoscopic/general surgical procedures, and continues research in other areas.

SAFE HARBOR STATEMENTS

Except for historical information, this press release includes forward-looking statements. These statements include, but are not limited to, the company's stated business outlook for fiscal 2003, continued strength of the company's fundamental position, the strength of the company's technology, the company's belief that strategic moves will enhance achievement of the company's long term potential, the potential and expected rate of growth of new businesses, continued success of product diversification efforts, and other statements that involve risks and uncertainties. These risks and uncertainties include, but are not limited to the uncertainty of success of the company's non-arthroscopic products, competitive risk, uncertainty of the success of strategic business alliances, uncertainty over reimbursement, need for governmental clearances or approvals before selling products, and the uncertainty of protecting the company's patent position. These and other risks and uncertainties are detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-K for the year ended Dec. 31, 2002 and the 10-Q for the quarter ended Sept. 30, 2003. Forward-looking statements are indicated by words or phrases such as "anticipates," "estimates," "projects," "believes," "intends," "expects," and similar words and phrases. Actual results may differ materially from management expectations.