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MEDTRONIC MOVES TO ACQUIRE SYNECTICS MEDICAL AS BASE TO EXPAND IN NEW BUSINESS AREAS

MINNEAPOLIS, March 11 /PRNewswire/ -- Medtronic, Inc. (NYSE: MDT) announced today that it will make a tender offer for all shares of Synectics Medical AB, of Stockholm, Sweden, the world leader in the development and marketing of computer-supported systems used to diagnose disorders of the urological and digestive systems and sleep apnea.

Synectics recently acquired Dantec Medical A/S, a Danish manufacturer of urodynamic diagnostic systems and an emerging supplier of neuromuscular diagnostic systems. The two companies had a total of about $60 million of revenue in their most recently completed fiscal years.

Medtronic, which has held an equity investment in Synectics Medical, is offering to acquire all remaining shares for about $41.74 each, or a total of approximately $59 million. The Synectics board of directors has endorsed the offer and three shareholders, who, including Medtronic, hold about 77.3 percent of the voting control of the company, have indicated their approval.

William W. George, Medtronic president and chief executive officer, said, "We view these strong organizations as a foundation to augment the development of therapeutic modalities already under way at Medtronic and to rapidly establish new growth platforms in the worldwide urological, gastrointestinal and sleep apnea markets. Synectics is an outstanding organization with excellent products, a worldwide sales and marketing network, and leading market shares."

Synectics is a distributor of related Medtronic products in Scandinavia. The company will be aligned with the Medtronic Ventures organization, based in Maastricht, the Netherlands, which develops and markets stimulation products used in the treatment of incontinence, pelvic pain, heart failure, sleep apnea, and gastroparesis.

Synectics diagnostic systems, available in portable versions for home use as well as modular laboratory models, employ catheters with sensors that collect a variety of physiological indicators useful in the precise diagnosis of disease. Data are analyzed by computer software which delivers reports to the urologist, gastroenterologist, or specialist in sleep disorders that are similar in informational characteristics to the electrograms commonly used by cardiologists.

North American medical markets account for about 40 percent of Synectics revenue, with Nordic and other European countries contributing an additional one-third. The North American sales force is headquartered in Irving, Texas. Synectics manufacturing facilities are located in Stockholm; Roden, the Netherlands; Copenhagen, Denmark, and Salt Lake City, Utah.

Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company. Its Internet address is http://www.medtronic.com.
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/CONTACT: Europe, Michael Baker of Medtronic Maastricht, 31-43-382 0933; U.S., Dale Beumer, Investor Relations, 612-574-3038, or Dick Reid, Public Relations, 612-574-3052, both of Medtronic/

(MDT) CO: Medtronic, Inc.; Synetics Medical AB ST: Minnesota IN: MTC SU:

KW-DS -- MNM007 -- 0612 03/11/96 08:50 EST
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Date:Mar 11, 1996
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