ArthroCare Launches LabraFix(TM) System; Anticipated `Sequel' to Opus AutoCuff Debuts This Month.

AUSTIN, Texas -- ArthroCare(R) Corp. (Nasdaq:ARTC) announced today the launch of its new LabraFix System -- a knotless arthroscopic repair technology that provides surgeons with an easy and fast labral repair.

The LabraFix System is designed to provide orthopedic surgeons with an enhanced arthroscopic approach to repairing labrum tears (Bankart and SLAP lesions) without having to tie complex and time-consuming surgical knots. The enabling technology has the potential to lower procedure costs by minimizing surgery time (it is faster than conventional arthroscopic techniques, enabling five-second direct, single-step suturing and knotless fixation).

"We're very excited about the launch of LabraFix," said Jack Giroux, president of ArthroCare Sports Medicine. "In a sense, it's a natural sequel to an existing success. The LabraFix System applies Opus' clinically proven AutoCuff(R) technology for Rotator Cuff Repair to Bankart and SLAP repair, and further advances our goal of developing fast, simple and reliable solutions to challenging shoulder problems. It's a powerful extension to our collection of shoulder-related products and something many of the surgeons with whom we work have been asking for."

The LabraFix system consists of two components -- the SpeedStitch(TM) Suturing Device and the MiniMagnum(TM) Knotless Implant. When used together, they enable the surgeon to arthroscopically repair the torn labrum quickly and securely. Among the key benefits this patented technology provides is a strong and reproducible tissue-to-bone fixation due to a tissue tensioning mechanism, a superior bone lock or hold, and a secure knotless suture lock.

Labrum tears are very common injuries typically caused by trauma or repetitive motion. The labrum is part of the shoulder essential to movement and functionality. When the labrum is torn, the stability of the shoulder joint is compromised. Pain caused by a torn labrum can be quite severe -- and ultimately results in an unstable shoulder and potential additional injuries if not treated. In the United States alone, an estimated 150,000 labral repair procedures are performed each year.

The LabraFix System is designed to help solve the complex problems of labral repair by providing surgeons with a swift and simple solution. Giroux noted that LabraFix is now ready for shipping and ArthroCare Sports Medicine will begin fulfilling surgeons' requests for the technology this month.

About ArthroCare

Founded in 1993, ArthroCare Corp. (www.arthrocare.com) is a highly innovative, multi-business medical device company that develops, manufactures and markets minimally invasive surgical products. With these products, ArthroCare targets a multi-billion dollar market opportunity across several medical specialties, significantly improving existing surgical procedures and enabling new, minimally invasive procedures. Many of ArthroCare's products are based on its patented Coblation technology, which uses low-temperature radiofrequency energy to gently and precisely dissolve rather than burn soft tissue -- minimizing damage to healthy tissue. Used in more than four million surgeries worldwide, Coblation-based devices have been developed and marketed for sports medicine; spine/neurologic; ear, nose and throat (ENT); cosmetic; urologic and gynecologic procedures. ArthroCare also has added a number of novel technologies to its portfolio, including Opus Medical sports medicine, Parallax spine and Applied Therapeutics ENT products, to complement Coblation within key indications.

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 2005 and 2006, 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, the uncertainty of protecting the company's patent position, and any changes in financial results from completion of year-end audit activities. 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-Q for the quarter ended June 30, 2005 and Form 10-K for the year ended Dec. 31, 2004. 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.