ArthroCare Secures Exclusive Rights to Distribute Biocomposites' BiLok Absorbable Tissue Fixation Technology in United States.

Business Editors/Health/Medical Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 1, 2003

Agreement Enables ArthroCare to Provide Surgeons Worldwide a

Complete System of Tissue Anchors and Fixation Devices for Knee and

Shoulder Reconstructions

ArthroCare Corp. (Nasdaq:ARTC), a multi-business medical device company that develops products based on its patented Coblation(R) technology, today announced it has secured exclusive rights to distribute Biocomposites' BiLok(R) absorbable tissue fixation technology in the United States. Under this agreement, the first product to be marketed by ArthroCare will be the BiLok ACL Screw.

With BiLok, ArthroCare is able to provide surgeons worldwide a complete system for ligament and tendon reconstructions in the knee, significantly increasing the company's revenue per procedure in arthroscopic anterior cruciate ligament (ACL) reconstructions and complementing the company's ACL reconstruction products acquired last October through its acquisition of Atlantech Medical Devices, Ltd.

ACL reconstructions are the most common surgical ligament and tendon procedures performed in the United States, with nearly 300,000 performed annually, often on high-profile athletes.

"We are pleased to have been granted exclusive rights to distribute the Biocomposites technology in the United States," said Michael A. Baker, president and chief executive officer for ArthroCare. "We have been distributing the BiLok ACL Screw outside of this country for the past three years with great success, particularly in Europe. The U.S. distribution rights are an expansion of our original agreement with Biocomposites. We look forward to further leveraging the BiLok implant to complement and broaden our current ACL product set worldwide."

BiLok ACL Screw -- Turning Implants Into Bone

During ACL reconstruction surgery, a tendon is inserted into bone and secured using anchoring devices or screws, usually made of metal or single-polymer absorbable materials. Growth of healthy, new bone to secure the tendon during healing requires osteogenic cells, which need a biocompatible scaffold onto which they can attach and proliferate. Extensive research shows the most biocompatible bone scaffolds are those based on calcium salts.

The BiLok ACL Screw is manufactured using a proprietary process where calcium salts are impregnated throughout the device and on the surface, where they are available as a scaffold. The result is an osteoconductive healing response that essentially converts the screw itself into bone. This process ultimately creates a stronger fixation of the tendon, permitting patients to more quickly return to normal activity and restoring the operative site to a more natural condition. In addition, the BiLok ACL Screw eliminates the need to remove an implant months after surgery, which is sometimes necessary with metal screws.

Biocomposites technology has been used clinically for more than four years. And, Biocomposites has compiled more than four years of human clinical data with significant, positive results.

"ArthroCare's past successes in the distribution of BiLok products in Europe will provide an excellent base for increasing their distribution to U.S. surgeons," said Biocomposites' managing director J. Stephen Bratt. "Our product development people will work closely with the ArthroCare team to expand the BiLok range of sports medicine products."

In addition to ArthroCare's distribution of the BiLok ACL Screw, the agreement calls for other, new bioabsorbable products to be developed by Biocomposites and marketed by ArthroCare. These new products are expected to include innovative solutions for ligament and meniscus reconstruction and anchors for soft tissue fixation in the shoulder. More than a million patients undergo surgeries requiring these types of products in the United States annually.

ArthroCare will market the BiLok ACL Screw to arthroscopic surgeons through its U.S. distribution network.

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, significantly improving surgical procedures and enabling new, minimally invasive procedures. ArthroCare's Coblation-based devices have been used in approximately two million surgical procedures worldwide. The company has developed and marketed Coblation-based products for arthroscopic, spine/neurologic, ear, nose and throat, cosmetic, urologic, gynecologic and laparoscopic/general surgical procedures, and continues research in other areas.

Safe Harbor 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 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 for the year ended Dec. 31, 2002. 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.