Centers for Medicare & Medicaid Services (CMS) approves request submitted by Orthofix to make modifications that will allow hospital procedure coding for external fixation products beginning October 1, 2005.

HUNTERSVILLE, N.C. -- "This is a very significant step toward establishing the economic impact of, and necessity for, separate and distinct reimbursement processes for our external fixation devices." -- Charles Federico, Group President & CEO, Orthofix International

Orthofix International N.V. (Nasdaq: OFIX) announced today that the Centers for Medicare & Medicaid Services (CMS) has approved Orthofix's request and has consequently modified its coding mechanisms to include specific coding for hospital procedures utilizing external fixation devices.

Currently, there is no means by which a health care facility can report the specific category of external fixation device used as an adjunct to a fracture management case or as a standalone procedure. As of October 1, 2005, with the modification and expansion of existing ICD-9 procedure codes, which will allow facilities to separately code and report usage of external fixation products, a data source will be created from which CMS can accurately track utilization, costs and quality outcomes of procedures involving external fixation products. Orthofix expects that this data will evidence a demonstrable positive economic impact and the necessity for separate and distinct reimbursement for external fixation devices.

"The modification of CMS' existing coding system to allow hospitals to separately code and report external fixation procedures is a great example of cooperation between the federal government and our Government Affairs team," said Charles Federico, Group President and CEO of Orthofix.

"This action by CMS allows us to collect and analyze substantial new data from hospitals across the United States, which we intend to present to CMS in due course to persuade CMS that external fixation products ought to be reimbursed separately," added Keely A. Scamperle, Manager of Reimbursement and Healthcare Economics in the Department of Government Affairs at Orthofix, who submitted the request to CMS. "We expect that, in time, this will have a significantly positive impact on the entire external fixation industry."

According to Medtech Insight ("Trends and Opportunities in U.S. Orthopedic Markets for Implants, Reconstruction and Trauma Products", #A310), U.S. sales of external fixation products are estimated to be approximately $249 million in 2005.

About Orthofix International, N.V.

Orthofix International N.V., a global diversified orthopedic products company, offers a broad line of minimally invasive surgical, as well as non-surgical, products for the spine, reconstruction, and trauma market sectors that address the lifelong bone-and-joint health needs of patients of all ages--helping them achieve a more active and mobile lifestyle. Orthofix's products are widely distributed around the world to orthopedic surgeons and patients--via Orthofix's sales representatives and its subsidiaries, including Breg Inc., and via partnerships with other leading orthopedic product companies, such as Medtronic Sofamor Danek and Kendall Healthcare. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Orthopedic Research and Education Foundation, the Cleveland Clinic Foundation, Innovative Spinal Technologies and National Osteoporosis Institute. For more information about Orthofix, please visit www.orthofix.com.

Forward-Looking Statements 

This news release contains certain forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements concerning the projections, financial condition, results of operations and businesses of Orthofix, and are based on management's current expectations and estimates and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Factors that could cause or contribute to such differences may include, but are not limited to, risks relating to the integration of the businesses of Orthofix and Breg, unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, risks relating to the protection of intellectual property, changes to the reimbursement policies of third parties, changes to governmental regulation of medical devices, the impact of competitive products, changes to the competitive environment, the acceptance of new products in the market, conditions of the orthopedic industry and the economy and other factors described in the most recent report on Form 10-K and other periodic reports filed by Orthofix with the Securities and Exchange Commission.