ArthroCare Licenses Worldwide Distribution Rights in Gynecology to GYNECARE Division of ETHICON; Market Leader Acquires Rights to Coblation-Based Products.

Business Editors/Health & Medical Writers

SUNNYVALE, Calif.--(BW HealthWire)--November 27, 2001

ArthroCare Corporation (Nasdaq:ARTC) today announced that the company has granted the GYNECARE division of ETHICON exclusive worldwide rights to market Coblation(R)-based products for laparoscopic and open surgical procedures for gynecological applications, excluding gynecological products for use throughout the reproductive tract. Under the terms of the agreement, GYNECARE will have the right to have ArthroCare manufacture gynecological surgical devices jointly developed by ArthroCare and GYNECARE, and GYNECARE will have the rights to market those products worldwide. Additional financial details of the agreement were not disclosed.

ArthroCare estimates that over 1.8 million laparoscopic and open gynecology procedures are performed each year in the United States. In October 2001, the United States Food and Drug Administration (FDA) granted ArthroCare clearance to market Coblation-based surgical devices for open and laparoscopic approaches to a variety of specific gynecological indications including removal of tumors, lysis of adhesions, hysterectomy, myomectomy, salpingo-oophorectomy, endometriosis and other common gynecological procedures.

"We are pleased to announce this exciting strategic alliance with GYNECARE," said Michael A. Baker, ArthroCare's president and chief executive officer. "GYNECARE is a leader in the field of women's health and we believe a strong partner for Coblation-based products in this area."

ArthroCare will hold a conference call for the financial community and interested parties today at 8:00 am Eastern time, 5:00am Pacific time to discuss the business outlook for 2002 and the implications of the agreement with ETHICONGYNECARE. A live webcast of the conference call will be available online at www.arthrocare.com and on www.ccbn.com and will remain available on those websites through December 10. A replay of the conference call will also be available by phone at 800-633-8284, reservation number 20035813 through December 10.

ABOUT GYNECARE

GYNECARE, a global health care company, offers less invasive options for the prevention of adhesions and treatment of uterine disorders, female urinary incontinence and infertility. Information about the company and its products can be found on the World Wide Web at www.gynecare.com. GYNECARE is a division of ETHICON, INC., a Johnson & Johnson company.

ABOUT ARTHROCARE

ArthroCare's products allow surgeons to operate with a high level of precision and control, limiting damage to surrounding tissue. The company's products operate at lower temperatures than traditional electrosurgical or laser surgery tools and enable surgeons to remove, thermally modify, 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 and gynecology surgery (including open and laparoscopic approaches), and various cardiology applications. The company's website is www.arthrocare.com.

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 belief in physician and patient acceptance of novel surgical procedures, the company's belief that the development and introduction of certain surgical products and procedures will enhance achievement of the company's long term potential, the likelihood of market penetration in certain markets, the continued rate of growth of sales for certain products, obtaining future regulatory clearances 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, 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 December 30, 2000 and the Form 10-Q for the quarter ended September 30, 2001. 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 plans.