Biomet Announces Appellate Court Reversal.

Business Editors, Health/Medical Writers

WARSAW, Ind.--(BW HealthWire)--Jan. 18, 2001

(Nasdaq:BMET) Biomet, Inc. ("Biomet") announced today that the U.S. Court of Appeals for the Federal Circuit (the "Federal Circuit") has reinstated the $20 million punitive damages award against Biomet given to Raymond G. Tronzo by the United States District Court in the Southern District of Florida while affirming the compensatory damages award of $520. In its decision in this matter, the District Court had reduced the punitive damage award to $52,000. The Federal Circuit's decision was based principally on procedural grounds, but included a finding that a relationship of 38,000 to 1 between the punitive award and the compensatory award was legally permissible. Biomet believes this result conflicts with controlling law, including decisions of the United States Supreme Court.

Biomet intends to challenge the Federal Circuit's decision. Initially, Biomet will seek reconsideration by the Federal Circuit and, if necessary, it will seek review of the case by the United States Supreme Court. Notwithstanding Biomet's intention to aggressively appeal the Federal Circuit's decision, Biomet intends to record a $20 million charge plus legal expenses and post-judgment statutory interest against pre-tax earnings for its third quarter ending February 28, 2001, to reflect the Federal Circuit's decision. It is important to note that this is a one-time financial event and does not affect the on-going sales of any of Biomet's product lines.

Dane A. Miller, President and CEO of Biomet, said, "We are astounded by the court's decision and we will pursue all available appeals including, but not limited to, an appeal to the United States Supreme Court, if necessary."

Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy, including reconstructive and fixation devices, electrical bone growth stimulators, orthopedic support devices, operating room supplies, general surgical instruments, arthroscopy products, spinal implants, bone cements, bone substitute materials, craniomaxillofacial implants and dental reconstructive implants and associated instrumentation. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries.

For further information contact Daniel P. Hann, Senior Vice President and General Counsel, at [phone], or Barbara Goslee, Manager, Corporate Communications, at [phone].

Web site: www.biomet.com or e-mail [e-mail]