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MEDTRONIC EXPLAINS FINANCIAL RESULTS OF LITIGATION SETTLEMENT

 MEDTRONIC EXPLAINS FINANCIAL RESULTS OF LITIGATION SETTLEMENT
 MINNEAPOLIS, Sept. 11 /PRNewswire/ -- Medtronic, Inc. (NYSE: MDT) today announced the expected impact on Fiscal 1993 earnings of the settlement of patent litigation with Siemens AG.
 Medtronic said the $50 million initial payment from Siemens will be recognized as income in the second quarter of Fiscal 1993. The $25 million contingent payment received from Siemens for future royalties will be recognized as income when earned.
 The company also intends to adopt Statement of Financial Accounting Standard (SFAS) No. 106 and SFAS No. 109 in the second quarter of Fiscal 1993. SFAS No. 106 requires companies to record the cost of retirees' health and insurance benefits during the years that the employee provides service. Currently Medtronic records such costs when benefits are paid to retirees. In adopting SFAS No. 106, the company expects to immediately record the transition obligation, which is the cost of postretirement benefits earned to date by employees and retirees.
 SFAS No. 109 changes the manner in which companies account for income taxes. All companies are required to implement SFAS No. 106 and SFAS No. 109 no later than in fiscal years beginning after Dec. 15, 1992.
 The estimated effect of the two accounting changes on Medtronic financial results will be a reduction in Fiscal 1993 earnings by approximately $20 million. Accounting principles require that such changes be made as of the beginning of the company's fiscal year.
 Accordingly, the company's results for its first quarter will be restated to reflect a negative impact of $0.24 per share in that period.
 Medtronic also plans to devote a portion of settlement proceeds to reinforce its citizenship commitment in communities where the company operates. Second-quarter results are expected to reflect a contribution of approximately $12 million to the Medtronic Foundation. Medtronic also expects to record approximately $18 million to accelerate amortization of certain intangible assets.
 The company said it expects the ongoing Siemens royalty payments to have a favorable impact on earnings in Fiscal 1993 and beyond. A significant portion will be used to drive the company's growth and to make increased investments in research and development, customer education, medical outcomes studies, patent enforcement, and customer support in the field.
 Medtronic, Inc., headquartered in Minneapolis, is a leading developer and manufacturer of biomedical devices for improving cardiovascular and neurological health.
 -0- 9/11/92
 /CONTACT: Dale Beumer, Investor Relations, 612-574-3038 or Dick Reid, Public Relations, 612-574-3052, both of Medtronic, Inc./
 (MDT) CO: Medtronic, Inc.; Siemens AG ST: Minnesota IN: MDT SU:


DS -- MN005 -- 8335 09/11/92 08:56 EDT
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Date:Sep 11, 1992
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