District Court Sides with Smith & Nephew; Rules that It will Issue Injunction that...

District Court Sides with Smith & Nephew; Rules that It will Issue Injunction
that will Prohibit Arthrex Inc. from Selling Infringing Medical Devices

ANDOVER, Mass., Oct. 29 /PRNewswire-FirstCall/ -- A US District Court
judge in Oregon yesterday ruled that it will grant Smith & Nephew
(NYSE: SNN; LSE: SN) Endoscopy's request for an injunction that will prohibit
privately held Arthrex Inc. of Naples, Fla., from manufacturing or selling
medical devices that infringe a patent exclusively licensed to Smith & Nephew
by Dr. John O. Hayhurst of Portland, Ore.
A jury determined in June that Arthrex willfully infringed this patent by
marketing and selling Bio-SutureTak, PEEK SutureTak, Bio-PushLock and PEEK
PushLock suture anchors (see Editors Note) used in various minimally invasive
soft tissue repair surgeries, and awarded Smith & Nephew Endoscopy $14.7
million for past infringement through 2005.
The court ruled in our favor, and effective 60 days after the Court enters
final judgment -- expected sometime around the end of the year -- Arthrex must
stop manufacturing and selling the infringing Bio-SutureTak and PEEK SutureTak
anchors.
The injunction will not affect sales of current Arthrex PushLock anchors.
During the case Arthrex stopped selling the infringing first generation
PushLock anchors and replaced them with modified PushLock Anchors. Smith &
Nephew and Dr. Hayhurst have filed a second lawsuit against Arthrex seeking an
injunction against the newer versions of PushLock anchors as well as Arthrex's
Bio-Composite SutureTak anchors.
"We are pleased that the judge has granted our request for an injunction,"
said Michael Frazzette, president of Smith & Nephew Endoscopy. "Smith & Nephew
remains committed to defending its intellectual property and the hard work of
the surgeons who partner with us in developing and commercializing these
innovative tools and techniques for the ultimate benefit of the patient."
In addition to granting Smith & Nephew's injunction, the judge:
-- Granted prejudgment interest in the amount of $1.5 million
-- Ruled that the court will award additional damages for Arthrex's
infringement after 2005
-- Also ruled that the Oregon federal district court will not stay the
injunction pending Arthrex's appeal

Editors note:
The disputed patent covers use of Smith & Nephew's BIORAPTOR, TAG(TM)
WEDGE, and TAG ROD suture anchors, which are designed to help repair
instability in the shoulder as well as other soft tissue tears. The Arthrex
products that were found to infringe these patents are: Bio-SutureTak, PEEK
SutureTak, and Bio-PushLock and PEEK PushLock suture anchors which are used in
various soft tissue repair surgeries, including shoulder repair surgery.
Contact: Joe Metzger
Sr. Vice President, Corporate Communications
Smith & Nephew Endoscopy
(978) 749-1330
joe.metzger@smith-nephew.com

About Us
Smith & Nephew is a global medical technology business, specializing in
Orthopaedic Reconstruction, Orthopaedic Trauma and Clinical Therapies,
Endoscopy and Advanced Wound Management products. Smith & Nephew is a global
leader in arthroscopy and advanced wound management and is one of the leading
global orthopaedics companies.
Smith & Nephew is dedicated to helping improve people's lives. The Company
prides itself on the strength of its relationships with its surgeons and
professional healthcare customers, with whom its name is synonymous with high
standards of performance, innovation and trust. The Company operates in 32
countries around the world. Annual sales in 2007 were nearly $3.4 billion.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In
particular, statements regarding planned growth in our business and in our
operating margins discussed under "Outlook" are forward-looking statements as
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SOURCE Smith & Nephew Inc.

Joe Metzger, Sr. Vice President, Corporate Communications, of Smith & Nephew
Endoscopy, +1-978-749-1330, joe.metzger@smith-nephew.com