Biomet Announces Financial Results for Second Quarter of Fiscal Year 2008.

WARSAW, Ind. -- Biomet, Inc. announced today financial results for its second fiscal quarter ended November 30, 2007.

* Net sales increased 11% to $578.1 million

* Worldwide reconstructive device sales increased 15% reported (12% constant currency, excluding instruments)

* Worldwide knee sales increased 17% reported (16% constant currency, excluding instruments)

* Worldwide hip sales increased 12% reported (9% constant currency, excluding instruments)

* Worldwide dental sales increased 19% reported (14% constant currency)

* Worldwide craniomaxillofacial fixation sales increased 22% reported (19% constant currency)

* Worldwide arthroscopy sales increased 30% reported (27% constant currency)

As previously announced, on September 25, 2007, Biomet Inc. merged with LVB Acquisition Merger Sub, Inc., a wholly-owned subsidiary of LVB Acquisition, Inc. LVB Acquisition, Inc. is indirectly owned by investment partnerships directly or indirectly advised or managed by The Blackstone Group L.P., Goldman Sachs & Co., Kohlberg Kravis Roberts & Co. L.P. and TPG Capital. These financial results have been prepared in a manner that complies, in all material respects, with generally accepted accounting principles in the U.S. with the exception of certain purchase accounting adjustments related to the Merger, including the effects of the merger-related debt and associated interest expense. The Company will reflect the purchase accounting adjustments related to the Merger by the end of fiscal year 2008.

During the second quarter of fiscal year 2008, net sales increased 11% to $578.1 million. Excluding the impact of foreign currency, net sales increased 8% worldwide. Excluding both the impact of foreign currency and instruments, which the Company discontinued selling to distributors in the United States in the third quarter of fiscal 2007, worldwide sales increased 9% during the quarter.

During the second quarter of fiscal year 2008, the Company incurred special charges (pre-tax) of 16.6 million, approximately half of which related to the previously announced operational improvement program (see attached table). A reconciliation of reported results to adjusted results is included in this press release, which is also posted on our website.

Reported operating income for the second quarter of fiscal year 2008 was $145.7 million compared to operating income of $155.1 million for the second quarter of fiscal year 2007. Adjusted operating income was $162.3 million for the second quarter of fiscal year 2008 compared to $159.1 million for the second quarter of fiscal year 2007. Reported net income for the second quarter of fiscal year 2008 was $89.0 million compared to net income of $104.8 million for the second quarter of fiscal year 2007. Adjusted net income for the second quarter of fiscal year 2008 was $99.1 million compared to adjusted net income for the second quarter of fiscal year 2007 of $107.5 million. Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of fiscal year 2008 was $194.4 million as compared to $182.5 million in the second quarter of fiscal year 2007.

Second Quarter Sales Performance

Reconstructive Products

During the second quarter of fiscal year 2008, reconstructive device sales increased 15% worldwide to $423.8 million compared to $368.0 million for the second quarter of fiscal year 2007. Reconstructive device sales in the United States increased 9% (11% excluding instruments) and international reconstructive device sales increased 24%. Excluding instruments and on a constant currency basis, worldwide reconstructive devices sales increased 12%.

On a reported basis, knee sales increased 17% worldwide and increased 13% in the United States during the second quarter as compared to the prior year's second quarter. Excluding instruments and on a constant currency basis, knee sales increased 16% both worldwide and in the United States. Biomet continued to experience an acceleration in knee sales during the second quarter for key products, including the Oxford([R]) Partial Knee System and the Vanguard([TM]) Complete Knee System. The Oxford([R]) Partial Knee System is the only free-floating mobile-bearing partial knee approved by the Food and Drug Administration for sale in the United States and it continues to receive phenomenal market demand. Outside the United States, the Oxford([R]) System has experienced excellent long-term clinical results. The Vanguard([TM]) Complete Knee System is the only total knee replacement that allows for sizing of the femur and tibia independently, providing complete component interchangeability to allow for a precise fit.

Hip sales increased 12% worldwide and 4% in the United States on a reported basis during the second quarter of fiscal year 2008 as compared to the second quarter of fiscal year 2007. Excluding instruments and on a constant currency basis, second quarter hip sales increased 9% worldwide and 6% in the United States. During the second quarter, Biomet's M2a-Magnum([TM]) Acetabular System and the Taperloc([R]) Hip Stem continued to experience robust demand, as strong market acceptance continued for the ReCap([R])Total Resurfacing System that is marketed outside the United States.

Extremity sales increased 11% worldwide during the second quarter of fiscal year 2008 and decreased 3% in the United States. Extremity growth drivers for the quarter included the Copeland([TM]) Humeral Resurfacing Head, the Comprehensive([R]) Primary Shoulder and the ExploR([R]) Radial Head, in addition to the T.E.S.S. Total Evolutive Shoulder System that is marketed outside the United States.

During the second quarter, sales of bone cements and accessories increased 8% worldwide and 2% in the United States. Refobacin Bone Cement R, Biomet Europe's top-selling cement, was the key growth driver during the quarter. Biomet's internally-developed Cobalt([TM]) G bone cement also contributed to the second quarter growth.

Dental reconstructive device sales increased 19% worldwide during the second quarter and increased 9% in the United States. On a constant currency basis, second quarter dental reconstructive device sales increased 14%. During the second quarter, Biomet 3i expanded its limited release of the Encode([R])Complete System. This technology incorporates robotics to facilitate the fabrication of a patient-specific abutment, which greatly simplifies the restorative process.

Fixation Products

During the second quarter of fiscal year 2008, fixation sales decreased 4% worldwide to $56.7 million compared to $58.8 million for the second quarter of fiscal year 2007. Fixation sales decreased 14% in the United States during the quarter. Craniomaxillofacial sales increased 22% worldwide and 7% in the United States during the second quarter. The strong growth in international craniomaxillofacial sales was attributable to the launch of LactoSorb([R])Resorbable plates and screws into the Japanese market. Internal fixation sales increased 4% worldwide during the second quarter and decreased 11% in the United States, while external fixation sales decreased 17% worldwide and 19% in the United States. Electrical stimulation device sales decreased 20% worldwide and 21% in the United States during the second quarter.

Spinal Products

Spinal product sales decreased 3% worldwide to $49.5 million during the second quarter of fiscal year 2008 compared to $50.9 million for the second quarter of fiscal year 2007. Spinal product sales decreased 1% in the United States during the second quarter of fiscal year 2008. Sales of spinal implants and orthobiologics for the spine increased 3% worldwide and 8% in the United States during the second quarter, while spinal stimulation sales decreased 11% both worldwide and in the United States.

During the second quarter, a clinical evaluation was initiated for the Ballista([TM]) Percutaneous Pedicle Screw Placement System and the AccuVision([TM]) Minimally Invasive Spinal Exposure System. Both products represent important additions to the Company's comprehensive line of thoracolumbar spine technologies.

Other Products

Sales of the Company's "other products" increased 13% worldwide to $48.1 million during the second quarter of fiscal year 2008 compared to $42.6 million during the second quarter of fiscal year 2007. Sales of "other products" increased 5% in the United States during the second quarter of fiscal year 2008. Arthroscopy sales increased 30% worldwide and 18% in the United States during the second quarter, while sales of softgoods and bracing products decreased 11% both worldwide and in the United States.

Biomet's President and Chief Executive Officer Jeffrey R. Binder stated, "The Company's reconstructive sales category performed very well again this quarter with accelerated growth continuing across various product groups within this category, particularly for knees. In addition, sales of craniomaxillofacial fixation and arthroscopy products were also strong during the second quarter."

Mr. Binder added, "We continue to work to strengthen our trauma and spine business. We've built a strong foundation for change and continue to believe we can reach our goal of producing positive revenue growth within the Biomet Trauma and Biomet Spine business during the first half of fiscal year 2009."

All trademarks herein are the property of Biomet, Inc. or its subsidiaries unless otherwise indicated.

Refobacin[TM] is a trademark of Merck.

About Biomet

Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Biomet's product portfolio encompasses reconstructive products, including orthopedic joint replacement devices, bone cements and accessories, autologous therapies and dental reconstructive implants; fixation products, including electrical bone growth stimulators, internal and external orthopedic fixation devices, craniomaxillofacial implants and bone substitute materials; spinal products, including spinal stimulation devices, spinal hardware and orthobiologics; and other products, such as arthroscopy products and softgoods and bracing products. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 70 countries.

Contacts

For further information contact Daniel P. Florin, Senior Vice President and Chief Financial Officer at [phone] or Barbara Goslee, Director, Corporate Communications at [phone].

Forward-Looking Statements

The is press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements are often indicated by the use of words such as "will," "intend," "anticipate," "estimate," "expect," "plan" and similar expressions. Forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from those contemplated by the forward looking statements due to, among others, the following factors: the results of ongoing investigations by the United States Department of Justice; the ability to successfully implement new technologies; the Company's ability to sustain sales and earnings growth; the Company's success in achieving timely approval or clearance of its products with domestic and foreign regulatory entities; the stability of certain foreign economic markets; the impact of anticipated changes in the musculoskeletal industry and the ability of the Company to react to and capitalize on those changes; the ability of the Company to successfully implement its desired organizational changes; the impact of the Company's managerial changes; and other factors set forth in the Company's filings with the SEC, including the Company's most recent annual report on Form 10-K (as amended) and quarterly reports on Form 10-Q. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or non-occurrence of future events. There can be no assurance as to the accuracy of forward-looking statements contained in this press release. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements which speak only as of the date on which they were made.

Use of non-GAAP Financial Information

To supplement Biomet's consolidated financial statements presented on a reported basis, the Company discloses certain non-GAAP measures that exclude certain charges, including non-GAAP operating income, non-GAAP net income and non-GAPP net income per diluted share. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Biomet management believes that these non-GAAP measures provide useful information to investors; however, this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to the corresponding GAAP measure is included in the tables below.

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Note to Editors: In the text above, the "2" in "M2a-Magnum" is superscript.