Medtronic Increases Earnings Per Share Guidance for Fiscal Years 2006 - 2008.

MINNEAPOLIS -- Medtronic, Inc. (NYSE:MDT) today announced revised upward earnings per share (EPS) guidance estimates for fiscal years 2006 through 2008 at its Annual Analyst Meeting today in Minneapolis.

Gary Ellis, Chief Financial Officer of Medtronic, announced the following updates to earnings per share estimates:

--Fiscal year 2006 EPS estimates were raised from previous estimates of between $2.10 and $2.15 to projected EPS of between $2.18 and $2.23.

--Fiscal year 2007 EPS estimates were raised from previous estimates of between $2.37 and $2.47 to projected EPS of between $2.45 and $2.55.

--Fiscal year 2008 EPS estimates were raised from previous estimates of between $2.70 and $2.90 to projected EPS of between $2.78 and $2.98.

Medtronic reaffirmed its previous revenue guidance for fiscal years 2006 through 2008, including projected revenues of between $11.1 and $11.6 billion for fiscal year 2006; $12.2 and $13.3 billion for fiscal year 2007; and $14.0 and $16.0 billion for fiscal year 2008.

Bill Hawkins, the Company's Chief Operating Officer, also affirmed that the company expects revenue growth of 14 percent to 16 percent for the second fiscal quarter.

"Medtronic's strong operational performance thus far this year; our continued prospects for growth over the three-year period of fiscal years 2006 through 2008; our continued investments in new and innovative technologies; and a reduced effective income tax rate provides us increased confidence in our ability to improve investor returns over our previous earnings guidance," stated Ellis. "This guidance remains consistent with Medtronic's long-term growth objectives and underscores our confidence in our ability to deliver sustainable, long-term growth."

Mr. Ellis also reiterated Medtronic's long-standing financial objectives of 15 percent growth over any five-year period for revenue and earnings; a 20 percent or better return on average equity; and 20 percent payout of prior year earnings in the form of cash dividends.

The earnings per share ranges for fiscal year 2006 through 2008 exclude the effect of any special or extraordinary charges that may impact the company's continuing operations and do not give effect to the impact of mandatory stock option expensing as required under new accounting rule changes.

Medtronic, Inc., headquartered in Minneapolis, is the world's leading technology company - alleviating pain, restoring health and extending life for people with chronic disease. Its Internet address is www.medtronic.com.

This press release contains forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, governmental regulation, general economic conditions and others described in Medtronic's Annual Report on Form 10-K for the year ended April 29, 2005. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements.