ArthroCare to Repurchase up to $75 Million of Common Stock.

The Company is Also Seeking a Correction to Inaccuracies That Appeared in a Recently Published Article and Reconfirms Its 2007 Estimates

AUSTIN, Texas -- ArthroCare Corp. (Nasdaq:ARTC), a leader in developing state-of-the-art, minimally invasive surgical products today announced that its Board of Directors has approved the repurchase of up to $75 million of its outstanding common stock. The timing and amount of shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors with a majority of the repurchases expected to be completed by March 31, 2008.

"This share purchase signals the confidence of ArthroCare's Board of Directors and management in the ongoing strength and profitability of our business. We expect this share repurchase to be accretive to our EPS and to enhance shareholder value," said Mike Baker, president and chief executive officer of ArthroCare.

The company also commented on a recent press report alleging that one of the company's reimbursement service providers may have engaged in inappropriate business practices, including an inaccurate allegation that the Massachusetts Attorney General's office was "looking into" ArthroCare's relationship with its service provider. This week, ArthroCare contacted the Massachusetts Attorney General's office and was informed that there was no such investigation. ArthroCare has carefully reviewed the article in question and found numerous material inaccuracies. The company intends to contact the publisher to request a correction of the factual inaccuracies contained in the article.

"As an organization, we have a well-earned reputation for integrity and ethical behavior which we take very seriously. Our FDA-cleared plasma disc decompression products are globally recognized as being among the most clinically successful and cost-effective spinal therapies. We have carefully reviewed the business practices of our service provider and have found no evidence of anything improper in their activities. In fact, we believe that the application of a disciplined diagnostic and treatment algorithm improves patient selection and outcomes, and that the involvement of experienced professionals in the reimbursement process significantly decreases the chance of administrative errors," added Baker.

The company also reiterated its fourth quarter 2007 and 2008 calendar year guidance: The Company expects revenue growth for calendar year 2007 to be at least 20 percent with GAAP diluted EPS for the fourth quarter to be $0.48 to $0.50 and GAAP diluted EPS for the full calendar year to be $1.48 to $1.50.

For 2008, the company expects revenue growth of at least 20 percent, a 200 basis point improvement in operating profit margin and a 24 percent corporate income tax rate.

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 2007, 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 September 30, 2007 and its Form 10-K for the year ended December 31, 2006. 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.