Orthofix signs three-year Novation agreement for its Gotfried PC.C.P System for intertrochanteric hip fractures.

HUNTERSVILLE, N.C. -- "Given that Novation serves the purchasing needs of some 2,500 health care organizations that purchased more than $23 billion worth of supplies off of Novation contracts in 2004, we are very excited about this agreement."

Charles Federico, Group President & CEO, Orthofix International

Orthofix International N.V. (Nasdaq: OFIX) announced today that it has entered into a three-year agreement with Irving, Texas-based Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC), effective July 1, 2005. Under the agreement, Orthofix will make available its Gotfried PC.C.P (PerCutaneous Compression Plate) System to the approximately 2,500 health care organizations that purchase medical devices, supplies and drugs off of Novation contracts. PC.C.P is a minimally invasive device that minimizes operative trauma, surgical time and blood loss related to intertrochanteric hip and base-of-neck fractures.

This contract was awarded through Novation's new technology evaluation process, whereby a group of surgeons representing VHA and UHC member hospitals determined that Orthofix's offering is unique in the market and offers incremental patient benefits.

"Novation's leadership stature in health care group purchasing, combined with its thorough new technology evaluation process, is a strong endorsement of our minimally invasive Gotfried PC.C.P System," said Charles Federico, group president and CEO of Orthofix. "Orthopedic surgeons have the ability to change the outcome for their fragile hip-fracture patients by selecting the most appropriate device available. Orthofix provides these surgeons with a truly innovative surgical device that has one-of-a-kind benefits for them and their patients."

"The health care organizations we serve rely on Novation to help them save money on the most innovative, high-quality and safe medical products and devices. Certainly, the Gotfied PC.C.P System fits that description," added Cathy Denning, senior director, Contract and Program Services, for Novation.

Further to existing scientific data, a recent independent clinical study of 104 patients with intertrochanteric hip fractures showed that Orthofix's PC.C.P hip fixation device has at least three distinct advantages over the Compression Hip Screw (CHS) device (considered the current 'gold standard'). PC.C.P's advantages included: (1) significantly less operative blood loss; (2) dramatically decreased mortality; and, (3) improved stability of fixation. Results of the study, entitled 'Comparative Study of PCCP and CHS Devices for the Fixation of Intertrocanteric Hip Fractures', were presented from the podium at the February 2005 annual meeting of the American Academy of Orthopedic Surgeons (AAOS) by Amos Peyser, M.D., an orthopedic surgeon at Hadassah-Hebrew University Medical Center, Jerusalem, Israel. Intertrochanteric fracture patients in the Peyser study were randomized to be treated by PC.C.P or CHS. The patient-groups were comparable regarding gender, fracture type, duration of surgery and hospital stay.

"The results of our study were dramatic," said Dr. Peyser. "Operative blood loss was 177.8 ml in the PC.C.P group and 371.3 ml in the CHS group (p<0.0001), or a 109 percent increase in operative blood loss associated with use of the gold standard device for hip fracture fixation. Even more surprising was the fact that mortality during the one-year follow-up was only 10 percent in the PC.C.P group but 24.5 percent in the CHS group, representing a 145 percent increase in deaths for the CHS group. These results lead us to conclude that PC.C.P provides equally good fixation as compared to the CHS, and also provides the advantages of Minimally Invasive Surgery: reduced blood loss and morbidity, and improved stability of fixation in these patients."

Additional recent information, from Europe, presented at the 'Elderly Trauma Patient International Congress' (Isola D' Elba, Italy, June 2005) revealed similar results. In a comparative study by Professor Rinaldo Giancola, there was a reduction in length of surgery and a substantial reduction in one-year mortality and blood transfusion rate with the PC.C.P group compared to one of the other standard treatment devices.

Startling Facts About Hip Fractures

Hip fractures are the most serious consequence of osteoporosis. According to the Academy of Orthopedic Surgeons (AAOS), hip fractures in seniors is a serious health problem--accounting for approximately 380,000 hospital admissions last year alone. One in two women and one in four men over age 50 will have an osteoporosis-related fracture in their remaining lifetime. Osteoporosis is responsible for more than 1.5 million fractures annually. A woman's risk of hip fracture is equal to her combined risk of breast, uterine and ovarian cancer. Additionally, a woman's life-time risk of dying from hip fracture complications equals that of dying from breast cancer. An average of 24 percent of hip fracture patients aged 50 and over dies in the year following their fracture. One-fourth of those who were ambulatory before their hip fracture require long-term care afterward. At six months after a hip fracture, only 15% of hip fracture patients can walk across a room unaided. White women 65 or older have twice the incidence of fractures as African-American women. (References: National Osteoporosis Foundation (NOF); American Academy of Orthopedic Surgeons (AAOS); Melton, L.J., 3rd, et al., Magnitude and impact of osteoporosis and fractures, in Osteoporosis, R. Marcus, D. Feldman, and J.L. Kelsey, Editors, 2001, Academic Press: San Diego, CA. p. 557-567.)

About Novation

Novation, which was established in 1998 through the combination of the supply programs of VHA Inc. and the University HealthSystem Consortium (UHC), serves the purchasing needs of more than 2,500 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in devices, supplies and drugs in 2004.

About Orthofix International,

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 relationships 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.