Orthofix Receives Reimbursement from the French Government for Its Physio-Stim Bone Growth Stimulator.

HUNTERSVILLE, N.C. -- Orthofix International NV (NASDAQ: OFIX) today announced that it has received reimbursement approval from France's Ministry of Health for Orthofix's Physio-Stim(R) bone growth stimulator.

To prepare Physio-Stim for reimbursement in France, Orthofix first had to make certain it had an excellent technical and medical assessment file, with strong clinical data supporting the effectiveness and safety of Physio-Stim. The Company also had to make a strong case for the economic justification of Physio-Stim.

"While bone growth stimulation products are well-established in the United States, stimulation is a relatively new technology in Europe--thus offering an attractive level of potential growth, due in part to increasing procedure volumes, but also due to the significant competitive advantages of our stimulation product family," said Charles Federico, Group President and Chief Executive Officer of Orthofix. "We expect that we can grow our second-place(1) market share in France now that Physio-Stim will be reimbursed by the French government. In addition, we will continue to be aggressive in seeking reimbursement for our stimulation products in other European countries. Orthofix has the broadest line of clinically proven and FDA-cleared stimulation products, and we believe this presents us with significant competitive advantages--not only in Europe, but in the U.S. as well."

"We are very proud to be the first PEMF treatment reimbursed in France for pseudoarthosis and delayed union," added Francoise Havez, General Manager of Orthofix, S.A. "The recommendation of the CEPP (Commission d'Evaluation des Produits et Prestations) placed Physio-Stim ahead of a second surgery or ultrasound treatment. Physio-Stim enables quantifiable public healthcare cost-savings and will allow patients to come back to work earlier. Our great reputation among surgeons has presumably always been a competitive advantage. Reimbursement is an additional benefit."

According to Medtech Insight, a division of Windhover Information, in 2004 there were approximately 1,838 procedures in France that used bone growth stimulation products post-operatively, representing approximately $4.2 million in sales. Sales in France are expected to increase to $4.5 million in the year 2008. (1)

About Physio-Stim(R)

Physio-Stim is indicated for the treatment of an established nonunion acquired secondary to trauma. A nonunion is considered to be established when the fracture site shows no visible progressive signs of healing. Physio-Stim is a single-piece, self-contained, battery-powered, non-invasive, low energy, pulsed electromagnetic device. It contains an integrated microprocessor-based control unit that generates programmed current pulses for the treatment transducer. The Transducer, in turn, delivers a uniform low-amplitude pulsed electromagnetic field (PEMF) to the fracture site. The device is powered by a single 9-volt disposable battery. The integrated Transducer/Control unit design eliminates all cords, connections and cables for the patient to manage. The device is lightweight and allows great freedom of movement during treatment sessions. Phsyio-Stim is intended for daily application of three hours per day for 90 to 180 days of usage.

(1) Source: Medtech Insight, a division of Windhover Information, "European Markets for Orthopedic Implants and Trauma Products", October 2004.

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 relationship 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.