ArthroCare Moves to Acquire Distributors in United Kingdom and Germany; Purchases of Atlantech Medical Devices and Atlantech GmbH Accelerate Company's Direct Sales Strategy in Europe.Business Editors/Health and Medical Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 30, 2002 ArthroCare Corp. (Nasdaq:ARTC ARTC Arthrocare Corp (stock symbol) ARTC Australian Rail Track Corporation ARTC Air Route Traffic Control ARTC Association de la Recherche Theatrale au Canada ARTC Andean Root and Tuber Crops ), a multi-business medical device company that develops products based on its patented Coblation(R) technology, today announced it has moved to acquire two of its European distributors: Atlantech Medical Devices, Ltd., a distributor of ArthroCare products in the United Kingdom, and Atlantech GmbH, ArthroCare's German distributor. The acquisition of Atlantech Medical Devices was completed on Oct. 21, 2002. ArthroCare has reached an agreement to acquire Atlantech GmbH, and the company expects this transaction to close within the next 30 days. The acquisitions accelerate the implementation of ArthroCare's direct sales strategy in Europe, providing the company with an immediate direct sales force in two key markets. At the end of the second quarter, ArthroCare had 19 sales and marketing employees in Europe. Upon completion of the second transaction, ArthroCare will have 47 employees in Europe, 38 of these involved in sales and marketing activities. Atlantech Medical Devices and Atlantech GmbH have been ArthroCare distributors for the past two years. The cost of the transactions will modestly impact operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter ended Sept. 30, 2002; ArthroCare will announce complete third-quarter financial results later today. The two acquisitions are expected to break even in the fourth quarter of 2002 and be modestly accretive in fiscal year 2003. "By acquiring our distributors in the United Kingdom and Germany, ArthroCare is able to instantly expand its international base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army ," said Michael A. Baker Michael Allen Baker (Captain, USN, Ret.) is the International Space Station Program Manager for International and Crew Operations, at NASA's Johnson Space Center. He is responsible for the coordination of program operations, integration and flight crew training and support , president and chief executive officer for ArthroCare. "Atlantech's employees are already intimately familiar with our products, so the integration of our sales teams should be relatively seamless. We look forward to leveraging these acquisitions to expedite our transition to a direct sales model in major European markets." ArthroCare also obtains a complementary line of sports medicine sports medicine, branch of medicine concerned with physical fitness and with the treatment and prevention of injuries and other disorders related to sports. Knee, leg, back, and shoulder injuries; stiffness and pain in joints; tendinitis; "tennis elbow"; and products through the purchase of Atlantech Medical Devices. This product line will allow ArthroCare to compete across a broader base of the sports medicine market in selected geographies. ABOUT ARTHROCARE ArthroCare Corp. (www.arthrocare.com), headquartered in Sunnyvale, Calif., is a multi-business medical device company that develops, manufactures and markets minimally invasive soft tissue surgical products based on its patented Coblation technology. Coblation uses low-temperature radiofrequency energy to gently and precisely dissolve rather than burn soft tissue, minimizing damage to healthy tissue. ArthroCare targets a multi-billion dollar market opportunity across several medical specialties Medical Specialties See also anatomy; disease and illness; drugs; health; remedies; surgery. adenography the science of the description of glands. — adenographic, adj. , significantly improving surgical procedures Surgical procedures have long and possibly daunting names. The meaning of many surgical procedure names can often be understood if the name is broken into parts. For example in splenectomy, "ectomy" is a suffix meaning the removal of a part of the body. "Splene-" means spleen. and enabling new, minimally invasive procedures. ArthroCare's Coblation-based devices have been used in more than 1.75 million surgical procedures worldwide. The company has developed and marketed Coblation-based products for arthroscopic, spine/neurologic, ear, nose and throat, cosmetic, urologic, gynecologic gynecologic /gy·ne·co·log·ic/ (gi?ne-) (jin?e-kah-loj´ik) pertaining to the female reproductive tract or to gynecology. and laparoscopic/general surgical procedures, and continues research in other areas. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements Except for historical information, this press release includes forward-looking statements. These statements include, but are not limited to, the expectations regarding trends in newly commercialized markets, the company's belief that certain surgical products and procedures will enhance achievement of the company's long-term potential, the sustainability of growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in certain markets, the effect of anticipated government regulatory clearances, continued success of product diversification efforts, opportunities to execute strategic initiatives, and other statements that involve risks and uncertainties. These risks and uncertainties include, but are not limited to, the fact that the company's operating results will fluctuate, the market price of the company's stock may be highly volatile, the sustainability of the company's growth rate, continued success of market diversification efforts. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 29, 2001 and the 10-Q for the quarter ended June 29, 2002. Forward-looking statements are indicated by words or phrases such as "anticipates", "estimates", "projects", "believes", "intends", "expects", and similar words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. . Actual results may differ materially from management plans. |
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