Biomet Announces Record Third Quarter Results.

Business Editors/Health/Medical Writers

WARSAW, Ind.--(BUSINESS WIRE)--March 17, 2004

Biomet, Inc. (NASDAQ:BMET) today reported record sales and earnings results for its third quarter ended February 29, 2004. Net sales increased 16% to $410,185,000, while operating income increased 28% to $132,589,000 and diluted earnings per share increased 21% to $0.34.

Dane A. Miller, Ph.D., Biomet's President and Chief Executive Officer stated, "We are pleased with Biomet's third quarter operating results which continue to be led by strong growth in the Company's reconstructive, spinal hardware and orthobiologic product lines. Continued market acceptance of recently introduced products and minimally invasive knee and hip instruments propelled the growth of the Company's reconstructive product lines during the third quarter. Total hip, knee, extremity and dental reconstructive implant sales grew 14%, 18%, 27% and 29%, respectively, during the recently completed quarter. Additionally, sales of the Company's spinal hardware and orthobiologic spinal products increased 20% worldwide during the third quarter as Biomet continues to broaden its line of spinal products and technologies for our customers worldwide."

Excluding the impact of foreign currency, which increased third quarter sales by $17.9 million, net sales increased 11% during the third quarter of fiscal year 2004. United States and international sales, excluding the effects of foreign currency, each increased 11% during the third quarter.

Reconstructive device sales increased 22% worldwide to $270,203,000 during the third quarter of fiscal year 2004. On a constant currency basis, worldwide reconstructive device sales increased 15%. Knee sales increased 18% worldwide during the third quarter and 15% in the United States. Knee sales increased 12% worldwide, constant currency. Knee sales continue to be driven by Biomet's broad line of total knee systems and minimally invasive unicondylar knee systems. Additionally, the Company's microplasty minimally invasive total knee instruments continue to receive excellent market acceptance.

During the third quarter, hip sales increased 14% worldwide and 9% in the United States. Excluding the impact of foreign currency, hip sales increased 8% worldwide. Biomet's M2a-38 Metal-on-Metal System and the Company's broad line of porous coated stems and revision systems continue to lead hip sales growth. Additionally, the Company's numerous training opportunities for the Posterior and Anterior/Lateral Approaches of Biomet's Microplasty Minimally Invasive Hip Program continue to receive excellent market acceptance.

Extremity sales increased 27% worldwide during the third quarter of fiscal year 2004 and 25% in the United States. On a constant currency basis, extremity sales increased 21% worldwide. Sales of dental reconstructive implants increased 29% worldwide and 19% in the United States during the third quarter. Worldwide dental reconstructive implant sales increased 22%, constant currency. Sales of bone cements and accessories increased 43% worldwide during the third quarter and 85% in the United States. Excluding the effect of foreign currency, sales of bone cements and accessories increased 26% worldwide.

Fixation sales increased 6% to $62,460,000 during the third quarter of fiscal year 2004 and increased 4% worldwide, constant currency. Lorenz Surgical's craniomaxillofacial fixation sales increased 19% worldwide and 13% in the United States during the third quarter. Worldwide craniomaxillofacial fixation sales increased 17%, constant currency. Sales of electrical stimulation products increased 8% in the United States and 9% worldwide during the third quarter. External fixation sales were flat worldwide during the third quarter and decreased 2% in the United States. Excluding the impact of foreign currency, external fixation sales were down 1% worldwide. Internal fixation sales were down 11% worldwide and decreased 5% in the United States during the quarter. On a constant currency basis, worldwide internal fixation sales were down 15%.

Spinal product sales increased 9% to $39,322,000 and increased 8% in the United States during the third quarter of fiscal year 2004. Spinal product sales increased 7% worldwide, constant currency. Domestic sales of spinal implants and orthobiological products for the spine increased 20%, while domestic spinal stimulation sales increased 4% during the third quarter.

Sales of Biomet's "other products" increased 4% to $38,200,000 and decreased 2% in the United States during the third quarter of fiscal year 2004. On a constant currency basis, "other product" sales increased 2% worldwide. Arthroscopy sales increased 10% worldwide during the quarter and increased 7% in the United States and constant currency. Softgoods and bracing sales increased 2% in the United States and 3% worldwide during the quarter and increased 1%, constant currency.

Dr. Miller concluded, "Biomet finished the third quarter with strong momentum and we are comfortable with the range of analysts' sales and earnings estimates of $420 to $438 million and $0.34 to $0.36 per share, respectively, for the fourth quarter of fiscal year 2004."

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 and accessories, 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 Greg W. Sasso, Vice President, Corporate Development and Communications at [phone] or Barbara Goslee, Manager, Corporate Communications at [phone].

This press release contains certain statements that are "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. 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 that the forward-looking statements contained in this press release will prove to be accurate. Actual results could differ materially from these statements as a result of the factors described in the Company's Annual Report or Form 10K and its other filings with the Securities and Exchange Commission. 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.

All trademarks are owned by Biomet, Inc., or one of its subsidiaries.

All of Biomet's financial information may be obtained on our website at www.biomet.com or you may contact us by e-mail at [e-mail].

                  BIOMET, INC. - - QUARTERLY RESULTS

                  FOR THE QUARTERS ENDED FEBRUARY 29
                 (in thousands, except per share data)


                     Three Months Ended          Nine Months Ended
                    --------------------     ------------------------

                      2004        2003          2004          2003
                      ----        ----          ----          ----
Net Sales           $410,185    $354,042     $1,168,065    $1,013,090
Cost of Sales        115,992     107,636        330,400       296,378
                    --------    --------     ----------    ----------
Gross Profit         294,193     246,406        837,665       716,712

S, G, & A            145,712     127,990        414,773       365,126
R & D                 15,892      14,555         46,450        40,262
                    --------    --------     ----------    ----------
Operating Income     132,589     103,861        376,442       311,324

Other Income, Net      3,570       9,145         10,260        15,947
                    --------    --------     ----------    ----------
Income Before Taxes
 And Minority
 Interest            136,159     113,006        386,702       327,271
Income Taxes          47,430      39,169        134,659       113,307
                    --------    --------     ----------    ----------
Income Before
 Minority Interest    88,729      73,837        252,043       213,964
Minority Interest      2,129       1,243          6,273         5,010
                    --------    --------     ----------    ----------
Net Income          $ 86,600    $ 72,594     $  245,770    $  208,954
                    ========    ========     ==========    ==========

Earnings per Share:
Basic                    .34         .28            .96           .80
Diluted                  .34         .28            .95           .80

Basic Shares         255,110     257,929        255,916       259,895
Diluted Shares       257,244     259,824        257,892       261,597


U.S. sales          $271,520    $244,838     $  788,317    $  711,538
Foreign sales        138,665     109,204        379,748       301,552

Reconstructive
 sales              $270,203    $222,253     $  755,726    $  626,192
Fixation sales        62,460      59,061        184,889       176,869
Spinal products       39,322      36,157        116,267       105,620
Other product sales   38,200      36,571        111,183       104,409


Consolidated Balance Sheets

                February 29, 2004           May 31, 2003
Assets
  Cash and
   Investments    $  463,638                 $  418,594
  Accounts and
   notes receivable,
   net               468,498                    418,095
  Inventories        383,200                    356,270
  Other current
   assets             79,629                     74,403
  Fixed Assets, net  267,540                    253,446
  Goodwill           130,299                    126,706
  Other Assets        25,121                     24,655
                  ----------                 ----------
    Total Assets  $1,817,925                 $1,672,169
                  ==========                 ==========

Liabilities and Stockholders' Equity

  Current
   Liabilities    $  288,542                 $  266,654
  Other Liabilities    7,455                      7,493
  Minority Interest  118,161                    111,888
  Stockholders'
   Equity          1,403,767                  1,286,134
                  ----------                 ----------
     Total
      Liabilities and
      Stockholders'
      Equity      $1,817,925                 $1,672,169
                  ==========                 ==========