Medtronic to Distribute Spinal Dynamics Prosthesis in Markets Outside The United States.

Innovative Solution Designed to Mimic Natural Function of Cervical Discs

MINNEAPOLIS, Feb. 20 /PRNewswire/ --

Medtronic, Inc. (NYSE: MDT), today announced an agreement with Spinal Dynamics of Mercer Island, Wash., under which Medtronic Sofamor Danek will distribute the Spinal Dynamics Bryan Cervical Disc System(TM) outside the United States.

(PHOTO: http://www.newscom.com/cgi-bin/prnh/20000224/MDTLOGO )

The Bryan Cervical Disc System is designed to replace the need for intervertebral fusion procedures, which are currently the most common form of surgery for treating painful degenerative disc disease of the cervical, or neck, region of the spine. In such procedures, the damaged disc is removed and the vertebrae are fused together. The Bryan prosthesis duplicates the anatomic function of the natural disc, thus allowing preservation of normal motion. The prosthesis, which was granted the CE Mark in September 2000 and has been in clinical use in Europe for more than a year, is the first device of its type to reach commercialization.

Medtronic will make a minority equity investment in Spinal Dynamics. Further financial details were not disclosed.

Spinal Dynamics, a private venture-backed company, develops innovative surgical procedures and reconstructive implants to improve the treatment of spinal disease.

Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, providing lifelong solutions for people with chronic disease. Medtronic Sofamor Danek, headquartered in Memphis, Tenn., develops and manufactures products that treat a variety of disorders of the cranium and spine, including traumatically induced conditions, degenerative conditions, deformities and tumors. Its Internet address is http://www.sofamordanek.com

Any statements made regarding 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 10K for the year ended April 30, 2000. Actual results may differ materially from anticipated results.