ArthroCare Introduces Surgical Device Optimized for Meniscus Repair; New Design Provides Enhanced Access to Most Areas of Knee.

Business Editors, Health/Medical Writers

SUNNYVALE, Calif.--(BW HealthWire)--Feb. 17, 2000

ArthroCare Corporation (Nasdaq:ARTC) today launched the Multi-Vac(TM) ArthroWand(R), a disposable arthroscopic surgical device optimized for use in knee surgery, particularly meniscus repair.

Knee surgery has been an important target market for ArthroCare as it represents the largest segment of the arthroscopic surgery market. In 1998, approximately 2.3 million arthroscopic procedures were performed in the United States; approximately 1.5 million of those were knee procedures. The company's goal is to reduce the procedure time by replacing multiple tools, such as mechanical cutters and dissectors, with one tool capable of precisely removing soft tissue from even the most difficult-to-reach areas of the knee.

The new Multi-Vac device, based on ArthroCare's patented Coblation(R) technology, is designed for easy access to most areas of the knee and includes a unique platinum screen which facilitates a high level of sculpting with less residual heat, leaving a smooth surface behind. The device is an evolution of ArthroCare's successful suction product line. The Multi-Vac offers the same advantages of precise soft-tissue ablation at low temperatures as all of the company's Coblation-based products, and is the first to employ platinum for an even cooler ablative process.

&uot;We believe that ArthroCare's Coblation technology is ideally suited for arthroscopic surgical procedures involving the meniscus and other difficult-to-reach areas of the knee,&uot; said Michael A. Baker, ArthroCare's president and chief executive officer. &uot;The use of platinum lowers the level of heat generated, protecting delicate knee tissue, and suction functionality improves the surgeon's visibility in areas of limited access. We believe ArthroCare's new Multi-Vac surgical device has the potential to become a surgeon's device of choice for many arthroscopic knee procedures.&uot;

ArthroCare's soft-tissue surgery systems allow surgeons to operate with a high level of precision and accuracy, limiting damage to surrounding tissue, thereby potentially reducing pain and speeding recovery for the patient. The company's products operate at lower temperatures than traditional electrosurgical or laser surgery tools, and enable surgeons to remove or shrink soft tissue and to simultaneously seal bleeding vessels.

ArthroCare is a medical device company that develops, manufactures and markets products based on its patented Coblation technology. ArthroCare's soft-tissue surgery systems consist of a controller unit and an assortment of disposable devices that are specialized for specific types of surgery. The company believes its Coblation technology can replace the multiple surgical tools traditionally used in soft tissue surgery with one multi-purpose surgical system. Coblation technology is applicable across many soft-tissue surgical markets. ArthroCare's systems are used to perform many types of arthroscopic surgery. The company's strategy includes applying its patented Coblation technology to a broad range of other soft-tissue surgical markets, including cosmetic surgery, ear, nose and throat surgery, spinal surgery and various cardiology applications.

Except for historical information, this press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the company's fundamental position, continued success of certain product lines and strategies, the strength of the company's market position, and risks as detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-K for the year ended January 2, 1999, Form S-3 dated September 28, 1999, and Form 10-Q for the quarter ended October 2, 1999. Such statements are indicated by words or phrases such as &uot;anticipates,&uot; &uot;estimates,&uot; &uot;projects,&uot; &uot;believes,&uot; &uot;intends,&uot; &uot;expects,&uot; and similar words and phrases. Actual results may differ materially from management expectations. The company disclaims any obligation to update any of the forward-looking statements contained herein to reflect future events or developments.