ArthroCare Launches LabraLock(TM) P Device.

AUSTIN, Texas -- ArthroCare(R) Corp. (Nasdaq:ARTC) announced today the launch of its new LabraLock P (PEEK) implant - a device that, as part of the Company's innovative LabraFix(TM) System, is designed to provide orthopedic surgeons with a simpler, faster process for performing arthroscopic shoulder repairs for patients with labrum tears.

Labrum tears are common shoulder injuries, typically caused by repetitive motion or trauma - such as falling on an outstretched arm. The labrum is a part of the shoulder essential to movement and functionality. A torn labrum will compromise the stability of the shoulder joint and can cause severe pain. Each year, an estimated 150,000 labrum repair procedures are done in the United States.

LabraLock P provides surgeons with a mechanism to transport the labrum tissue and anchor it back to the shoulder joint with ArthroCare's patented TriLock(TM) suture locking technology.

When used with ArthroCare's SpeedStitch(R) suturing device, the LabraLock P becomes a component of the Company's innovative LabraFix(TM) System, designed to enable a superior repair, simplified procedure and maximum efficiency, without the need to tie complex and time-consuming surgical knots.

"We're very excited about the launch of the LabraLock P," said Jack Giroux, president of ArthroCare Sports Medicine. "It takes our LabraFix System to the next level and enables us to offer surgeons everything they need for the most advanced labrum repairs. The technology also has the potential to lower procedure costs by minimizing surgery time compared to traditional arthroscopic procedures."

At just 3mm, the LabraLock P's compact implant design, made of PEEK plastic polymer, is both MRI- and x-ray-friendly.

The LabraLock P is now ready for shipping and ArthroCare Sports Medicine expects to begin fulfilling surgeons' requests for the technology within the next 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 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, 2006 and Form 10-K for the year ended Dec. 31, 2005. 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.