Medtronic Xomed Acquires Pascal Medical's Meniere's Business; ENT Business Closes Deal With Swedish Company That Makes Technology to Treat Inner Ear Disorder.

Business Editors & Health/Medical Writers

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Oct. 1, 2001

Medtronic Xomed, the ear, nose and throat (ENT) business of Medtronic, Inc. (NYSE:MDT), today concluded the purchase of the Meniere's business of Pascal Medical AB, a Swedish company. Pascal developed the Meniett(TM) portable pressure-pulse generator to treat the symptoms of Meniere's disease, a disorder of the inner ear that causes recurring bouts of vertigo, tinnitus and hearing impairment.

During the next nine months, Medtronic Xomed plans to transfer production of the Meniett technology to its Jacksonville facility, launch it in the United States and expand international distribution.

Financial terms of the agreement were not disclosed.

"Medtronic Xomed is the global leader in the market for medical devices for the treatment of ear, nose and throat diseases," said Bob Blankemeyer, president and general manager of Medtronic Xomed. "Acquisition of the Meniett technology will extend our product offering to assist patients with chronic vestibular and hearing disorders, and will enhance the quality of life for thousands of patients with Meniere's disease."

Meniere's disease is a chronic disease from which, according to various studies, approximately 23 million people worldwide suffer, with an annual incidence of 2 million patients. The origin of Meniere's disease is believed to be an imbalance in the hydrodynamic system of the inner ear, described as endolymphatic hydrops. In addition to the severity of the clinical symptoms themselves, their unpredictable onset creates a major handicap for some patients.

Already granted the European CE Mark and market clearance by the U.S. Food and Drug Administration, the Meniett portable pressure-pulse generator is designed to restore the balance in the hydrodynamic system of the inner ear. After a standard ventilation tube is inserted into the eardrum of the patient, pressure pulses generated by the Meniett technology are transmitted into the middle ear. The clinical effect occurs as the pulses reach the inner ear. The typical treatment cycle is completed in five-minute treatments, performed three times a day. After prescription and training by a physician, patients can treat themselves with the device at home.

Local pressure treatment is a non-destructive method to easily, painlessly and effectively alleviate the symptoms of Meniere's disease. Other treatments include lifestyle and dietary changes, diuretics and other medications for control of vertigo. In severe cases, invasive methods are sometimes used to control vertigo. These methods include injections of vestibular destructive agents into the middle ear and various surgical methods. Some invasive techniques involve the risk of affecting the patient's hearing.

Founded in 1996, Pascal Medical resulted from collaboration between two medical researchers focused on Meniere's disease and a company concentrating on development of digital signal processing systems.

More information on the Meniett portable pressure-pulse generator and Meniere's disease is available through Medtronic Xomed by calling 1-877-966-3350 or [phone] and at Pascal's Web site, www.pascal.se.

Based in Jacksonville, Fla., Medtronic Xomed (www.xomed.com) is a leading manufacturer of surgical products for use by ENT specialists. It is part of Medtronic, Inc.

Headquartered in Minneapolis, Medtronic (www.medtronic.com) is the world's leading medical technology company, providing lifelong solutions for people with chronic disease.

Any statements made about the company's anticipated financial results and regulatory approvals are forward-looking statements subject to risks and uncertainties such as those described in the company's Annual Report on Form 10-K for the year ended April 27, 2001. Actual results may differ materially from anticipated results.