Arthrocare Introduces Trio of Novel Joint Surgery Wands; Products are Latest Example of Company's Commitment to Rapid, Creative Product Innovation.

SUNNYVALE, Calif.--(BW HealthWire)--July 6, 1998--ArthroCare Corp. (NASDAQ:ARTC) today announced the introduction of three new wands that expand the company's line of instruments for removing or shrinking tissue during arthroscopic joint surgery. The devices are aimed at expanding the applications for ArthroCare's patented Coblation(TM) technology in many types of joint surgery and are expected to be particularly useful in penetrating the important knee market.

Each of the new instruments has a unique design that distinguishes it from the company's existing product lines. The CoVac(TM) wand adds suction to the existing functions of tissue removal and hemostasis. This means that loose or free-floating tissue is drawn towards the wand for easy removal, a common need when repairing torn cartilage in the knee. Such procedures, which are known surgically as meniscectomies, are the most common type of knee operation, with more than one million performed each year. With the additional functionality of the CoVac wand, surgeons will be able for the first time to perform many of these repairs using a single instrument. This will substantially increase the market opportunity for ArthroCare.

The Saber(TM), another of the new wands, is the first ArthroWand designed for cutting. It employs a single, curved electrode that removes tissue along the full length of the electrode, not just at the tip. ArthroCare expects this wand to be particularly useful in lateral release procedures in the knee and for releasing frozen shoulders. The third new wand, called the Eliminator(TM), has a broad, brush-like design and larger electrode surface for very rapid tissue removal and enhanced coagulation. This wand is well suited for use in knee surgeries that involve reconstruction of the anterior cruciate ligament (ACL) and those where sculpting of cartilage is required.

"These wands are unlike any that we've produced before, and represent a real evolution in product design and innovation," said Allan Weinstein, ArthroCare's vice president of sales and marketing. "They also exploit the power and versatility of the latest version of our controller unit, the System 2000, which we introduced last November. This system is one of the keys that is allowing us to take Coblation technology to the next level."

Coblation technology is designed to improve the effectiveness and safety of standard methods for operating on soft tissue. Coblation uses radiofrequency (RF) energy to remove tissue through a significantly cooler process than is possible with traditional electrosurgery. Coblation disintegrates tissue layer by layer, giving the surgeon excellent control to remove tissue while leaving surrounding healthy tissue intact. As a result, Coblation-assisted surgery has the potential to improve operative precision and efficiency compared with standard arthroscopic techniques, thereby reducing pain and speeding recovery.

In the past year, ArthroCare has introduced an average of one new Coblation wand per month, a result of the company's aggressive program of product assessment and improvement. ArthroCare now markets nearly 20 arthroscopy wands in a range of sizes, power and function that together enable surgeons to operate on a wide array of abnormalities in essentially every major joint in the body.

"We continue to redefine the boundaries of our technology by bringing novel, effective products to the surgical market," said Michael Baker, ArthroCare's president and chief executive officer. "It is this commitment to innovation that has helped us to become, and will help us to remain, a technology leader in this field."

ArthroCare Corporation is a medical device company redefining the standard in soft tissue surgery by developing, manufacturing, and marketing novel Coblation(TM) technology that allows surgeons to operate with increased precision and accuracy, with minimal damage to surrounding tissue. The company's systems are being used to perform many types of closed joint surgery and have recently been introduced for use in cosmetic surgery and ear, nose and throat (ENT) surgery. ArthroCare's long-term strategy includes applying its patented technology to a broad range of surgical fields, including cardiology, urology, gynecology, and oral and general surgery.

This press release contains forward looking statements that involve risks and uncertainties, including but not limited to quarterly fluctuations in results, the management of growth, the competitive environment and risks as detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-K for the year ended January 3, 1998.

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