Biomet and Merck KGaA announce intent to form joint venture.

WARSAW, Ind.--(BW HealthWire)--May 19, 1997--Biomet, Inc. (NASDAQ:BMET) announced today that it has signed a letter of intent with Merck KGaA to establish a 50/50 joint venture for orthopedic products in Europe. Biomet and Merck will each contribute their existing European orthopedic operations to the venture, which will operate under the name, "Biomet-Merck." Pro forma sales of the joint venture for next fiscal year are anticipated to be in excess of $200 million. The joint venture will be structured to allow Biomet to consolidate all of the venture's revenues and its pro-rata share of the venture's earnings. Merck brings to the venture an extensive array of chemical, biological, pharmaceutical and orthopedic technologies and products, while Biomet brings its orthopedic products and technologies especially concentrated in total joint replacement.

The venture will provide Biomet with the exclusive right to license Merck's existing biomaterials-based orthopedic products for sale outside of Europe as well as future products developed by the joint venture. Biomet's Chairman of the Board, Niles L. Noblitt, will assume the additional role of CEO and Managing Director of the venture. The consummation of the joint venture transaction is subject to certain conditions, including the execution of a definitive agreement and the approval of the Boards of Directors of Biomet and Merck.

Dane A. Miller, Ph.D., Biomet's President and CEO, indicated that, "This organization will be one of the strongest development and marketing groups in the European orthopedic market. Access to Merck's superior biomaterials technologies will provide the Biomet group with a wide array of new products flowing well into the next century. We are proud to have been selected as Merck's partner." Dr. Bernard Scheuble, President of Merck's Ethical Pharmaceutical Division, added, "The strategic fit between Biomet's European operations and Merck's Biomaterial Division is complementary in terms of product lines, geography and core competencies. In addition, our partnership with Biomet will provide strong access to the important U.S. market for Merck's comprehensive line of existing and future biomaterial products. In Biomet, we have a partner with whom we share common values and vision who will leverage our strong development capability both in Europe and internationally."

Merck is a global chemical-pharmaceutical company headquartered in Darmstadt, Germany, and is not affiliated with Merck & Co. in the United States. Merck's total revenues were in excess of $4.2 billion in 1996.

Biomet, Inc. and its subsidiaries design, develop, manufacture and market products used primarily by orthopedic medical specialists in both surgical and non-surgical therapy, including reconstructive and trauma devices, electrical bone growth stimulators, orthopedic support devices, operating room supplies, powered surgical instruments, general surgical instruments, arthroscopy products and oral-maxillofacial implants and instruments. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in approximately 100 countries.

INFORMATIONAL NOTE: ALL SELL SIDE ANALYSTS AND FUND MANAGERS ARE INVITED TO ATTEND AN ANALYST MEETING HELD BY BIOMET AND MERCK AT 8:30 A.M. EDT ON TUESDAY, MAY 20, 1997, AT THE OFFICES OF BEAR STEARNS & CO., 5TH FLOOR AUDITORIUM, AT 245 PARK AVENUE, NEW YORK, NY. IF YOU ARE INTERESTED IN ATTENDING THIS MEETING, PLEASE CONTACT CAROLYN BEATTY AT [phone].

CONTACT: Biomet, Inc.

Greg W. Sasso, 219/372-1528