ArthroCare Introduces Two New Products for Use in Nucleoplasty Procedures; Novel Method For Minimally Invasive Treatment Of Contained Herniated Discs.

Business Editors/Health and Medical Writers

SUNNYVALE, Calif.--(BW HealthWire)--Sept. 12, 2000

ArthroCare Corporation (NASDAQ:ARTC) today announced the introduction of two new products for use in a novel, minimally invasive treatment for contained herniated spinal discs. These products, the Perc-D(TM) and Perc-DL(TM) disposable surgical devices, which are used in a procedure called Nucleoplasty,(TM) combine the company's patented Coblation(R) technology with thermal energy to partially remove and treat the nucleus of affected discs.

Using the Perc-D devices in nucleoplasty procedures, surgeons and spine specialists now have a method to treat axial and radicular symptoms caused by herniated or compressed discs without resorting to open surgical therapies. With a straightforward post-operative regime, which includes limited activities for two weeks and no bracing, patients are reporting rapid recovery and improved mobility and functionality. The technique is reimbursable under current medical insurance codes.

"The Perc-D and Perc-DL devices, when used in nucleoplasty procedures, offer a new and promising minimally invasive option for treating my patients with contained herniated discs," said David J. Smith, M.D., Director of the San Diego Comprehensive Pain Management Center. "There are a tremendous number of patients with contained herniated discs and discogenic pain that could benefit from this procedure. Many of these patients suffer from low back pain and sciatica. The early clinical results are encouraging, and I look forward to adding Perc-D devices to my standard practice."

The percutaneous procedure is performed with ArthroCare's patented Coblation Channeling(TM) products such as the Perc-D devices. As the Perc-D device is channeled into the nucleus, tissue is ablated through Coblation technology's low-temperature molecular dissociation process. Thermal energy is applied while withdrawing the device to coagulate the area around the channel and provide shrinkage of the collagen within the disc. The resulting decompression and changes in the collagenous and annular structures of the degenerative disc may potentially relieve pressure on nerve roots.

Nucleoplasty, when performed with the Perc-D surgical devices, is a relatively quick procedure, taking approximately 5 minutes per disc, or about one-third the time of competitive techniques. The comparatively lower coagulation temperature and the localized, rather than diffuse, thermal effect confines thermal energy to the immediate zone of coagulation around the channel, preventing chrondrocyte damage. Furthermore, the precision and control of the Perc-D products confine treatment to the nucleus, limiting the possibility of inadvertent damage to the nerve root.

"Spinal surgeons have been looking for a minimally invasive alternative, which is based on scientific principles, to treat contained herniated discs without resorting to open surgery," said Michael A. Baker, ArthroCare's president and chief executive officer. "We believe the combination of ArthroCare's scientifically proven low heat-based molecular dissociation process and our controlled thermal energy-based coagulation technology creates an exciting opportunity for the treatment of symptoms caused by contained herniated discs."

Designed to be used with commercially available contourable seventeen gauge needles, the Perc-D devices provide minimally invasive access to the intradiscal space. The new devices are small-profile, dual focused bipolar surgical devices which offer a localized tissue effect and tactile feedback to give the spine specialist complete control over device orientation and channel depth. The unique "S" shaped tip of the device further enhances precision and control while creating multiple Coblation channels within the disc. The new products are available worldwide immediately.

ArthroCare's products allow surgeons to operate with a high level of precision and control, limiting damage to surrounding tissue and 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, shrink or sculpt soft tissue and to 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 single-use 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. The company's strategy includes applying its patented Coblation technology to a broad range of soft-tissue surgical markets, including arthroscopic surgery, cosmetic surgery, ear, nose and throat surgery, spinal surgery, neurosurgery, general surgery, and various cardiology applications. The company's website is www.arthrocare.com.

SAFE HARBOR STATEMENT

Except for historical information, this press release includes forward-looking statements including, but not limited to, the company's fundamental position, continued success of certain product lines and strategies, the strength of the company's technology, and other statements that involve risks and uncertainties. These 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 January 1, 2000 and Form 10-Q for the quarter ended July 1, 2000. 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.