Coloplast Completes Acquisition of Mentor's Urology Business, Significantly Expanding Coloplast's Urology and Continence Global Product Offering for Customers.

COPENHAGEN, Denmark & MARIETTA, Ga. -- Coloplast announced today that it has successfully completed the acquisition of Mentor's urology business. The acquisition brings to Coloplast additional global resources and capabilities that increase the company's product and service offering for customers and establishes four new franchise areas: women's health, men's health, brachytherapy, and disposable surgical urology products. The combination of the businesses now positions Coloplast as one of the global leaders in urology devices. E[acute accent]"The completion of this acquisition is a significant milestone for Coloplast and was a strategic move for us as we seek to expand our global presence and capabilities and continually expand our product and service offering to customers," noted Jan R. Frederiksen, President Coloplast U.S. "In line with our 2012 objectives, we plan to make significant investments in R&D and continue Mentor's track record of innovation. The strength of the combined businesses and the positive outlook for the future Coloplast is a testament to the strong and experienced teams at both Mentor and Coloplast." E[acute accent]Dave Amerson, Vice President, Urology, will be transferring from Mentor to Coloplast to head up the combined Urology/Continence business. "This acquisition vaults us into a leadership position in urology and continence care and positions us well for continued growth in the U.S. and globally. The combination of teams at Mentor and Coloplast will increase our knowledge and competency creating an extended platform for further development with urology devices," said Amerson. E[acute accent]Mentor announced plans in 2005 to sell off its urology business. Although strong, profitable and growing, the unit did not fit with the company's strategic plans to shift the product portfolio toward aesthetic products. Mentor Urology was a natural fit with Coloplast in terms of mission, values, products, and industry expertise. In March of 2006, Coloplast secured an agreement with Mentor to acquire its urology business. E[acute accent]"With customers in mind, we have developed a strategic plan to integrate the two businesses," commented Brad Selman, Director, Post-Merger Integration for Coloplast. "This acquisition provides customers exceptionally strong and experienced sales team, with deep roots in the urology business, as well as access to a broader range of products. We continuously set higher standards for products and services that help patients achieve greater independence from their medical challenges." E[acute accent]Coloplast will continue the Mentor brand for a transition period, after which Coloplast will undergo a branding migration process that will help develop a common identity for its products. The company will be following normal business practices to which both Mentor and Coloplast customers are accustomed. The sales and service procedures and product support will remain in place during this transition period. E[acute accent]Coloplast will relocate all U.S. operations in sales, marketing and shared services to Minneapolis-St. Paul, Minnesota, which is due to the large concentration of employees, potential talent for recruitment, and a vibrant medical technology community centered in Minnesota. As part of the acquisition and restructuring effort, the Mentor Santa Barbara, California and Coloplast Marietta, Atlanta facilities will be closed and operations transferred to Minnesota. Coloplast has offered existing employees the opportunity to relocate, provided severance packages fully in line with market terms for employees who choose not to relocate, and instituted incentives for employees who stay through the facility closing process. Coloplast anticipates that the reorganization will occur over a period of 12-18 months.