Medtronic Annual Revenue Up 8 Percent to $14.6 Billion

Strong Performance Delivered Across Diverse Portfolio
MINNEAPOLIS--(Business Wire)--
Medtronic, Inc. (NYSE: MDT):

* Full Year Double Digit Constant Currency Revenue Growth in 5 out of 7
Businesses: CardioVascular, Spinal, Neuromodulation, Diabetes, Surgical
Technologies
* Fourth Quarter GAAP Cash Flow from Operations of $1.123 Billion
* Fourth Quarter Constant Currency Revenue Growth of 5%; Fourth Quarter Revenue
Decreased 1%

Medtronic, Inc. (NYSE: MDT) today announced financial results for its fiscal
year and fourth quarter ended April 24, 2009.

Medtronic recorded fiscal year 2009 revenue of $14.599 billion, an 8 percent
increase over the $13.515 billion in fiscal year 2008. Currency translation had
a negative impact on revenue of $100 million for the fiscal year. As reported,
fiscal year 2009 net earnings were $2.291 billion, or $2.04 per diluted share an
increase of 3 percent and 5 percent respectively. The attached table details
adjustments for restructuring, certain litigation, purchased in-process research
and development (IPR&D) and special charges and discrete tax adjustments. After
reconciling for these items in both periods, non-GAAP net earnings and diluted
earnings per share for the fiscal year were $3.283 billion and $2.92, an
increase of 10 percent and 12 percent respectively.

Fourth quarter revenue decreased approximately 1 percent to $3.829 billion from
the $3.860 billion reported a year ago. Revenue growth on a constant currency
basis was 5 percent after adjusting for the negative $211 million impact of
currency translation in the fourth quarter. As reported, fourth quarter net
earnings were $250 million, or $0.22 per diluted share. As detailed in the
attached table, adjusting for restructuring, certain litigation, IPR&D and
special charges and discrete tax adjustments, fourth quarter net earnings and
diluted earnings per share on a non-GAAP basis were $916 million and $0.82,
respectively.

"In 2009, we delivered on our financial commitments despite unforeseeable shifts
in the economy. We strengthened our core businesses, made several strategic
acquisitions in high potential markets, and made solid progress advancing our
pipelines by increasing our focus and discipline on driving innovation across
the company," said Bill Hawkins, chairman and chief executive officer. "In
addition, this was our second consecutive quarter of generating greater than $1
billion in free cash flow, which reflects our strong balance sheet management in
addition to our focus on operational excellence."

Cardiac Rhythm Disease Management

Cardiac Rhythm Disease Management annual revenue of $5.014 billion increased 1
percent; 2 percent on constant currency basis. Fourth quarter revenue of $1.300
billion decreased 5 percent, but grew 1 percent after adjusting for an
unfavorable $83 million currency translation impact. Implantable cardioverter
defibrillator (ICD) annual revenue of $2.962 billion increased 3 percent over
fiscal year 2008 on a constant currency basis. Worldwide annual pacing revenue
of $1.984 billion decreased 1 percent compared to last year. Fourth quarter
revenues for ICDs and pacing were $780 million and $494 million, respectively.
The acquisition of Ablation Frontiers was also completed in the quarter, which
when combined with the recent CryoCath acquisition, gives Medtronic two of the
leading technology platforms in the atrial fibrillation market.

Spinal and Biologics

Spinal and Biologics annual revenue of $3.400 billion increased 14 percent on
both an actual and constant currency basis, driven by $609 million in Kyphon
revenue. Fourth quarter Spinal and Biologics revenue of $881 million increased 1
percent, but grew 4 percent after adjusting for an unfavorable $20 million
currency translation impact. Revenue growth was driven by core spinal products
which increased 5 percent on a constant currency basis. Biologics revenue in the
fourth quarter was $215 million.

CardioVascular

CardioVascular annual revenue of $2.437 billion increased 14 percent; 15 percent
on a constant currency basis. Fourth quarter revenue of $644 million was flat
compared to a year ago, but grew 8 percent after adjusting for an unfavorable
$50 million currency translation impact. Coronary annual revenue of $1.292
billion increased 16 percent on a constant currency basis. Endovascular annual
revenue of $398 million increased 42 percent on a constant currency basis.
Fourth quarter Endovascular revenue of $117 million increased 67 percent on a
constant currency basis, driven by the strong performance of both the Talent
Abdominal Aortic Aneurysm (AAA) and Talent Thoracic aneurysm product lines. The
acquisitions of CoreValve and Ventor were also completed in the quarter,
positioning Medtronic in a leadership role in the transcatheter valve therapy
marketplace.

Neuromodulation

Neuromodulation annual revenue of $1.434 billion increased 9 percent; 10 percent
on a constant currency basis. Fourth quarter revenue of $389 million increased 2
percent, but grew 7 percent after adjusting for an unfavorable $18 million
currency translation impact. The business unit`s key growth therapies in the
fiscal year included InterStim for the treatment of overactive bladder, and
Activa deep brain stimulation for the treatment of Parkinson`s disease.

Diabetes

Diabetes annual revenue of $1.114 billion increased 9 percent; 11 percent on a
constant currency basis. Fourth quarter revenue of $296 million increased 8
percent, but grew 14 percent after adjusting for an unfavorable $18 million
currency translation impact. Growth during the year and in the fourth quarter
can be attributed to continued success of continuous glucose monitoring, which
grew nearly 30 percent in the quarter.

Surgical Technologies

For the fiscal year, the Surgical Technologies business generated annual revenue
of $857 million, an increase of 10 percent; 11 percent on a constant currency
basis. Fourth quarter revenue of $235 million, increased 3 percent, but grew 8
percent after adjusting for an unfavorable $12 million currency translation
impact. This growth was driven by sales of image guided surgery systems
including the StealthStation S7 with Synergy Cranial and EM Fusion. Nerve
monitoring equipment, monitoring disposables and revenue from service contracts
also contributed to the business unit`s growth in the quarter.

Physio-Control

Physio-Control reported annual revenue of $343 million, an increase of 4
percent; 6 percent on a constant currency basis. Fourth quarter revenue of $84
million decreased 17 percent, but after adjusting for an unfavorable $10 million
currency translation impact, revenue declined 7 percent.

In closing, Hawkins said, "We believe we have the most exciting portfolio of
products and therapies in the industry. Our relentless focus on execution and
innovation position us as an important part of the solution to address the
burden of global chronic disease."

Webcast Information

Medtronic will host a webcast today, May 19 at 8 a.m. EDT (7 a.m. CDT), to
provide information about its businesses for the public, analysts and news
media. This quarterly webcast can be accessed by clicking on the Investor
Relations link on the Medtronic home page at www.medtronic.com. This earnings
release will be archived at www.medtronic.com/newsroom. Within 24 hours, a
replay of the webcast and a transcript of the company`s prepared remarks will be
available in the "Presentations and Transcripts" section of the Investor
Relations homepage.

About Medtronic

Medtronic, Inc., headquartered in Minneapolis, is the world`s leading medical
technology company, alleviating pain, restoring health and extending life for
people with chronic disease. Its Internet address is www.medtronic.com

This press release contains forward-looking statements regarding our operating
momentum leverage, new acquisitions, continued product acceptance, non-domestic
and domestic growth and general business conditions, which are subject to risks
and uncertainties, such as competitive factors, difficulties and delays inherent
in the development, manufacturing, marketing and sale of medical products,
government regulation and general economic conditions and other risk and
uncertainties described in Medtronic`s Annual Report on Form 10-K for the year
ended April 25, 2008.Actual results may differ materially from anticipated
results.Medtronic does not undertake to update its forward-looking statements.
Unless otherwise noted, all comparisons made in this press release are on an "as
reported basis," not on a constant currency basis, and references to quarterly
figures increasing or decreasing are in comparison to the fourth quarter of
fiscal year 2008.

MEDTRONIC, INC.
REVENUE BY OPERATING SEGMENT - WORLD WIDE
(Unaudited)

($ millions)
FY 08 FY 08 FY 08 FY 08 FY 08 FY 09 FY 09 FY 09 FY 09 FY 09
QTR 1 QTR 2 QTR 3 QTR 4 Total QTR 1 QTR 2 QTR 3 QTR 4 Total
REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT $ 1,235 $ 1,148 $ 1,218 $ 1,363 $ 4,963 $ 1,303 $ 1,242 $ 1,169 $ 1,300 $ 5,014
Pacing Systems 494 495 478 540 2,008 526 506 457 494 1,984
Defibrillation Systems 726 639 726 806 2,897 764 724 694 780 2,962
Other 15 14 14 17 58 13 12 18 26 68

SPINAL $ 644 $ 660 $ 808 $ 869 $ 2,982 $ 859 $ 829 $ 832 $ 881 $ 3,400
Core Spinal 454 462 455 498 1,869 477 485 479 512 1,951
Biologics 190 198 206 221 815 221 198 205 215 840
Kyphon Business - - 147 150 298 161 146 148 154 609

CARDIOVASCULAR $ 486 $ 490 $ 512 $ 643 $ 2,131 $ 631 $ 596 $ 565 $ 644 $ 2,437
Coronary Stents 152 149 157 251 710 236 208 186 213 844
Other Coronary/Peripheral 95 96 103 116 408 113 107 110 119 448
Endovascular 69 70 70 76 285 87 95 99 117 398
Revasc & Surgical Therapies 102 105 109 115 431 117 112 103 114 447
Structural Heart Disease 68 70 73 85 297 78 74 67 81 300

NEUROMODULATION $ 289 $ 321 $ 320 $ 381 $ 1,311 $ 348 $ 343 $ 354 $ 389 $ 1,434
Neuro Implantables 237 264 260 308 1,069 284 271 283 308 1,145
Gastroenterology & Urology 52 57 60 73 242 64 72 71 81 289

DIABETES $ 241 $ 246 $ 258 $ 275 $ 1,019 $ 269 $ 272 $ 277 $ 296 $ 1,114

SURGICAL TECHNOLOGIES $ 172 $ 185 $ 195 $ 228 $ 780 $ 202 $ 213 $ 207 $ 235 $ 857
Core Ear, Nose and Throat (ENT) 75 75 81 92 323 87 86 83 97 352
Neurologic Technologies 69 74 73 82 298 79 80 78 82 320
Navigation 28 36 41 54 159 36 47 46 56 185

PHYSIO-CONTROL $ 60 $ 74 $ 94 $ 101 $ 329 $ 94 $ 75 $ 90 $ 84 $ 343

TOTAL $ 3,127 $ 3,124 $ 3,405 $ 3,860 $ 13,515 $ 3,706 $ 3,570 $ 3,494 $ 3,829 $ 14,599

ADJUSTMENTS :

CURRENCY IMPACT (1) $ - $ - $ - $ - $ - $ 157 $ 65 $ (110 ) $ (211 ) $ (100 )

COMPARABLE OPERATIONS (1) $ 3,127 $ 3,124 $ 3,405 $ 3,860 $ 13,515 $ 3,549 $ 3,505 $ 3,604 $ 4,040 $ 14,699

(1) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may wish to
consider the impact of foreign currency translation on revenue. In addition,
Medtronic management uses results of operations before currency translation to
evaluate the operational performance of the Company and as a basis for strategic
planning. Investors should consider these non-GAAP measures in addition to, and
not as a substitute for, financial performance measures prepared in accordance
with GAAP.

Note: The data in this schedule has been intentionally rounded to the nearest
million and therefore the quarterly revenue may not sum to the fiscal year to
date revenue.

MEDTRONIC, INC.
REVENUE BY OPERATING SEGMENT - US
(Unaudited)

($ millions)
FY 08 FY 08 FY 08 FY 08 FY 08 FY 09 FY 09 FY 09 FY 09 FY 09
QTR 1 QTR 2 QTR 3 QTR 4 Total QTR 1 QTR 2 QTR 3 QTR 4 Total
REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT $ 754 $ 679 $ 726 $ 765 $ 2,922 $ 731 $ 702 $ 670 $ 747 $ 2,851
Pacing Systems 244 237 218 242 940 233 228 206 228 896
Defibrillation Systems 504 434 502 515 1,955 492 472 454 505 1,923
Other 6 8 6 8 27 6 2 10 14 32

SPINAL $ 530 $ 540 $ 642 $ 683 $ 2,395 $ 682 $ 647 $ 658 $ 691 $ 2,678
Core Spinal 349 352 341 363 1,405 358 358 352 370 1,438
Biologics 181 188 195 208 772 208 184 194 203 789
Kyphon Business - - 106 112 218 116 105 112 118 451

CARDIOVASCULAR $ 167 $ 173 $ 165 $ 256 $ 761 $ 253 $ 235 $ 224 $ 265 $ 976
Coronary Stents 20 21 20 98 158 92 68 59 77 296
Other Coronary/Peripheral 24 24 26 28 104 28 26 29 31 111
Endovascular 35 37 31 35 138 41 51 51 61 205
Revasc & Surgical Therapies 49 52 49 51 200 52 51 49 54 206
Structural Heart Disease 39 39 39 44 161 40 39 36 42 158

NEUROMODULATION $ 201 $ 239 $ 227 $ 262 $ 929 $ 238 $ 249 $ 254 $ 279 $ 1,019
Neuro Implantables 160 192 180 207 738 189 192 199 215 794
Gastroenterology & Urology 41 47 47 55 191 49 57 55 64 225

DIABETES $ 163 $ 170 $ 170 $ 176 $ 681 $ 167 $ 180 $ 188 $ 200 $ 736

SURGICAL TECHNOLOGIES $ 112 $ 120 $ 124 $ 141 $ 497 $ 127 $ 136 $ 132 $ 149 $ 545
Core Ear, Nose and Throat (ENT) 48 47 51 56 201 53 54 54 61 221
Neurologic Technologies 45 50 48 52 195 51 53 51 53 209
Navigation 19 23 25 33 101 23 29 27 35 115

PHYSIO-CONTROL $ 21 $ 37 $ 44 $ 49 $ 151 $ 51 $ 47 $ 50 $ 45 $ 192

TOTAL $ 1,948 $ 1,958 $ 2,098 $ 2,332 $ 8,336 $ 2,249 $ 2,196 $ 2,176 $ 2,376 $ 8,997

ADJUSTMENTS :

CURRENCY IMPACT $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

COMPARABLE OPERATIONS $ 1,948 $ 1,958 $ 2,098 $ 2,332 $ 8,336 $ 2,249 $ 2,196 $ 2,176 $ 2,376 $ 8,997

Note: The data in this schedule has been intentionally rounded to the nearest
million and therefore the quarterly revenues may not sum to the fiscal year to
date revenue.

MEDTRONIC, INC.
REVENUE BY OPERATING SEGMENT - INTERNATIONAL
(Unaudited)

($ millions)
FY 08 FY 08 FY 08 FY 08 FY 08 FY 09 FY 09 FY 09 FY 09 FY 09
QTR 1 QTR 2 QTR 3 QTR 4 Total QTR 1 QTR 2 QTR 3 QTR 4 Total
REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT $ 481 $ 469 $ 492 $ 598 $ 2,041 $ 572 $ 540 $ 499 $ 553 $ 2,163
Pacing Systems 250 258 260 298 1,068 293 278 251 266 1,088
Defibrillation Systems 222 205 224 291 942 272 252 240 275 1,039
Other 9 6 8 9 31 7 10 8 12 36

SPINAL $ 114 $ 120 $ 166 $ 186 $ 587 $ 177 $ 182 $ 174 $ 190 $ 722
Core Spinal 105 110 114 135 464 119 127 127 142 513
Biologics 9 10 11 13 43 13 14 11 12 51
Kyphon Business - - 41 38 80 45 41 36 36 158

CARDIOVASCULAR $ 319 $ 317 $ 347 $ 387 $ 1,370 $ 378 $ 361 $ 341 $ 379 $ 1,461
Coronary Stents 132 128 137 153 552 144 140 127 136 548
Other Coronary/Peripheral 71 72 77 88 304 85 81 81 88 337
Endovascular 34 33 39 41 147 46 44 48 56 193
Revasc & Surgical Therapies 53 53 60 64 231 65 61 54 60 241
Structural Heart Disease 29 31 34 41 136 38 35 31 39 142

NEUROMODULATION $ 88 $ 82 $ 93 $ 119 $ 382 $ 110 $ 94 $ 100 $ 110 $ 415
Neuro Implantables 77 72 80 101 331 95 79 84 93 351
Gastroenterology & Urology 11 10 13 18 51 15 15 16 17 64

DIABETES $ 78 $ 76 $ 88 $ 99 $ 338 $ 102 $ 92 $ 89 $ 96 $ 378

SURGICAL TECHNOLOGIES $ 60 $ 65 $ 71 $ 87 $ 283 $ 75 $ 77 $ 75 $ 86 $ 312
Core Ear, Nose and Throat (ENT) 27 28 30 36 122 34 32 29 36 131
Neurologic Technologies 24 24 25 30 103 28 27 27 29 111
Navigation 9 13 16 21 58 13 18 19 21 70

PHYSIO-CONTROL $ 39 $ 37 $ 50 $ 52 $ 178 $ 43 $ 28 $ 40 $ 39 $ 151

TOTAL $ 1,179 $ 1,166 $ 1,307 $ 1,528 $ 5,179 $ 1,457 $ 1,374 $ 1,318 $ 1,453 $ 5,602

ADJUSTMENTS :

CURRENCY IMPACT (1) $ - $ - $ - $ - $ - $ 157 $ 65 $ (110 ) $ (211 ) $ (100 )

COMPARABLE OPERATIONS (1) $ 1,179 $ 1,166 $ 1,307 $ 1,528 $ 5,179 $ 1,300 $ 1,309 $ 1,428 $ 1,664 $ 5,702

(1) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may wish to
consider the impact of foreign currency translation on revenue. In addition,
Medtronic management uses results of operations before currency translation to
evaluate the operational performance of the Company and as a basis for strategic
planning. Investors should consider these non-GAAP measures in addition to, and
not as a substitute for, financial performance measures prepared in accordance
with GAAP.

Note: The data in this schedule has been intentionally rounded to the nearest
million and therefore the quarterly revenue may not sum to the fiscal year to
date revenue.

MEDTRONIC, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

Three months ended Twelve months ended
April 24, April 25, April 24, April 25,
2009 2008 2009 2008
(in millions, except per share data)
Net sales $ 3,829 $ 3,860 $ 14,599 $ 13,515

Costs and expenses:
Cost of products sold 932 945 3,518 3,446
Research and development expense 368 349 1,355 1,275
Selling, general and administrative expense 1,313 1,296 5,152 4,707
Special charges 100 - 100 78
Restructuring charges 24 27 120 41
Certain litigation charges 270 - 536 366
Purchased in-process research and development (IPR&D) charges 530 47 621 390
Other expense, net 53 188 396 436
Interest expense/(income), net 13 5 29 (109 )
Total costs and expenses 3,603 2,857 11,827 10,630

Earnings before income taxes 226 1,003 2,772 2,885

Provision for income taxes (24 ) 191 481 654

Net earnings $ 250 $ 812 $ 2,291 $ 2,231

Earnings per share:

Basic $ 0.22 $ 0.72 $ 2.05 $ 1.97
Diluted $ 0.22 $ 0.72 $ 2.04 $ 1.95

Weighted average shares outstanding:

Basic 1,115.0 1,122.3 1,117.8 1,130.7
Diluted 1,119.0 1,130.4 1,124.0 1,142.1

MEDTRONIC, INC.
RECONCILIATION OF CONSOLIDATED GAAP NET EARNINGS
TO CONSOLIDATED NON-GAAP NET EARNINGS
(Unaudited)
(in millions, except per share data)

Three months ended
April 24, April 25, Percentage
2009 2008 Change

Net earnings, as reported $ 250 $ 812 -69 %
Special charges 64 (a) -
Restructuring charges 16 (b) 22 (f)
Certain litigation charges 188 (c) -
IPR&D charges 530 (d) 50 (g)
Discrete tax adjustments (132 ) (e) -
Non-GAAP net earnings $ 916 $ 884 4 %

MEDTRONIC, INC.
RECONCILIATION OF CONSOLIDATED GAAP DILUTED EPS
TO CONSOLIDATED NON-GAAP DILUTED EPS
(Unaudited)

Three months ended
April 24, April 25, Percentage
2009 2008 Change

Diluted EPS, as reported $ 0.22 $ 0.72 -69 %
Special charges 0.06 (a) -
Restructuring charges 0.02 (b) 0.02 (f)
Certain litigation charges 0.17 (c) -
IPR&D charges 0.47 (d) 0.04 (g)
Discrete tax adjustments (0.12 ) (e) -
Non-GAAP diluted EPS $ 0.82 $ 0.78 5 %

(a) The $64 million ($0.06 per share) special charge represents an after-tax
charitable donation ($100 million pre-tax) made to The Medtronic Foundation. In
addition to disclosing special charges that are determined in accordance with
U.S. generally accepted accounting principles (GAAP), Medtronic management
believes that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact of
excluding this donation. Management believes that the resulting non-GAAP
financial measure provides useful information to investors regarding the
underlying business trends and performance of the Company`s ongoing operations
and is useful for period over period comparisons of such operations. Medtronic
management eliminates this donation when evaluating the operating performance of
the Company. Investors should consider this non-GAAP measure in addition to, and
not as a substitute for, financial performance measures prepared in accordance
with U.S. GAAP. In addition, this non-GAAP financial measure may not be the same
as similar measures presented by other companies.

(b) The $16 million ($0.02 per share) after-tax ($27 million pre-tax)
restructuring charge is the net impact of a $22 million after-tax charge for
restructuring initiatives that the Company began in the fourth quarter of fiscal
year 2009, offset by a $6 million after-tax reversal of excess reserves related
to the global realignment initiative that began in the fourth quarter of fiscal
year 2008. The fiscal year 2009 initiatives are designed to streamline
operations and further align resources around the Company`s higher growth
opportunities. This initiative will impact most businesses and certain corporate
functions. The Company recorded $2 million of the after-tax expense within cost
of products sold related to inventory write-offs and production-related asset
impairments associated with these restructuring activities. The $6 million
after-tax reversal is primarily a result of favorable severance negotiations
with certain employee populations outside the U.S. as well as a higher than
expected percentage of employees identified for elimination finding positions
elsewhere within the Company. In addition to disclosing restructuring charges
that are determined in accordance with U.S. GAAP, Medtronic management believes
that in order to properly understand its short-term and long-term financial
trends, investors may find it useful to consider the impact of excluding these
restructuring charges. Management believes that the resulting non-GAAP financial
measure provides useful information to investors regarding the underlying
business trends and performance of the Company`s ongoing operations and is
useful for period over period comparisons of such operations. Medtronic
management eliminates these restructuring charges when evaluating the operating
performance of the Company. Investors should consider this non-GAAP measure in
addition to, and not as a substitute for, financial performance measures
prepared in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same as similar measures presented by other companies.

(c) The $188 million ($0.17 per share) after-tax ($270 million pre-tax) certain
litigation charge relates to a settlement of all royalty disputes with Johnson &
Johnson which concern Medtronic`s licensed use of certain patents. The agreement
ended all current and potential disputes between the two parties under their
1997 settlement and license agreement relating to coronary angioplasty stent
design and balloon material patents. In addition to disclosing certain
litigation charges that are determined in accordance with U.S. GAAP, Medtronic
management believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the impact
of excluding these certain litigation charges. Management believes that the
resulting non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the Company`s
ongoing operations and is useful for period over period comparisons of such
operations. Medtronic management eliminates these certain litigation charges
when evaluating the operating performance of the Company. Investors should
consider this non-GAAP measure in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP. In
addition, this non-GAAP financial measure may not be the same as similar
measures presented by other companies.

(d) The $530 million ($0.47 per share) after-tax IPR&D charge represents the
cumulative impact of several transactions which took place during the fourth
quarter of fiscal year 2009:

-$97 million ($97 million pre-tax) related to the acquisition of Ablation
Frontiers, Inc.;

-$307 million ($307 million pre-tax) related to the acquisition of Ventor
Technologies, Ltd.;

-$123 million ($123 million pre-tax) related to the acquisition of CoreValve,
Inc.; and

-$3 million ($3 million pre-tax) related to the purchase of certain intellectual
property for use in the Spinal and Diabetes businesses.

In each of the above transactions, technological feasibility of the underlying
products had not yet been reached and such technology had no future alternative
use. In addition to disclosing IPR&D charges that are determined in accordance
with U.S. GAAP, Medtronic management believes that in order to properly
understand its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these IPR&D charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
IPR&D charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(e) The $132 million ($0.12 per share) discrete tax adjustment represents a tax
benefit associated with settlements reached in the fourth quarter of fiscal year
2009 with the U.S. Internal Revenue Service, numerous state taxing authorities,
and assessments received from various foreign tax authorities. The years under
review by the U.S. Internal Revenue Service were with respect to fiscal years
2005 and 2006, while the numerous state and foreign audits covered fiscal years
ranging from 1998 through 2008. In addition to disclosing the provision for
income taxes that is determined in accordance with U.S. GAAP, Medtronic
management believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the impact
of excluding this discrete tax adjustment. Management believes that the
resulting non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the Company`s
ongoing operations and is useful for period over period comparisons of such
operations, specifically the effective tax rate. Medtronic management eliminates
this discrete tax adjustment when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition to, and not
as a substitute for, financial performance measures prepared in accordance with
U.S. GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(f) The $22 million ($0.02 per share) after-tax ($31 million pre-tax)
restructuring charge is related to a global realignment initiative that the
Company began in the fourth quarter of fiscal year 2008. This initiative focuses
on shifting resources to those areas where the Company has the greatest
opportunities for growth and streamlining operations to drive operating
leverage. The global realignment initiative impacts most businesses and certain
corporate functions. The Company recorded $3 million of the $22 million
after-tax expense within cost of products sold related to inventory write-offs
and production-related asset impairments associated with these restructuring
activities. In addition to disclosing restructuring charges that are determined
in accordance with U.S. GAAP, Medtronic management believes that in order to
properly understand its short-term and long-term financial trends, investors may
find it useful to consider the impact of excluding these restructuring charges.
Management believes that the resulting non-GAAP financial measure provides
useful information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
restructuring charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(g) The $50 million ($0.04 per share) after-tax IPR&D charge represents the
cumulative impact of after-tax charges of $47 million ($42 million pre-tax)
related to the acquisition of NDI Medical, Inc., a development stage company,
and $3 million ($5 million pre-tax) related to the purchase of certain
intellectual property. In each of the above transactions, technological
feasibility of the underlying products had not yet been reached and such
technology had no future alternative use. In addition to disclosing IPR&D
charges that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact of
excluding these IPR&D charges. Management believes that the resulting non-GAAP
financial measure provides useful information to investors regarding the
underlying business trends and performance of the Company`s ongoing operations
and is useful for period over period comparisons of such operations. Medtronic
management eliminates these IPR&D charges when evaluating the operating
performance of the Company. Investors should consider this non-GAAP measure in
addition to, and not as a substitute for, financial performance measures
prepared in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same as similar measures presented by other companies.

MEDTRONIC, INC.
RECONCILIATION OF CONSOLIDATED GAAP NET EARNINGS
TO CONSOLIDATED NON-GAAP NET EARNINGS
(Unaudited)
(in millions, except per share data)

Twelve months ended
April 24, April 25, Percentage
2009 2008 Change

Net earnings, as reported $ 2,291 $ 2,231 3 %
Special charges 64 (a) 47 (f)
Restructuring charges 82 (b) 33 (g)
Certain litigation charges 364 (c) 274 (h)
IPR&D charges 614 (d) 388 (i)
Discrete tax adjustments (132 ) (e) -
Non-GAAP net earnings $ 3,283 $ 2,973 10 %

MEDTRONIC, INC.
RECONCILIATION OF CONSOLIDATED GAAP DILUTED EPS
TO CONSOLIDATED NON-GAAP DILUTED EPS
(Unaudited)

Twelve months ended
April 24, April 25, Percentage
2009 2008 Change

Diluted EPS, as reported $ 2.04 $ 1.95 5 %
Special charges 0.06 (a) 0.04 (f)
Restructuring charges 0.07 (b) 0.03 (g)
Certain litigation charges 0.32 (c) 0.24 (h)
IPR&D charges 0.55 (d) 0.34 (i)
Discrete tax adjustments (0.12 ) (e) -
Non-GAAP diluted EPS $ 2.92 $ 2.60 12 %

(a) The $64 million ($0.06 per share) special charge represents an after-tax
charitable donation ($100 million pre-tax) made to The Medtronic Foundation. In
addition to disclosing special charges that are determined in accordance with
U.S. generally accepted accounting principles (GAAP), Medtronic management
believes that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact of
excluding this donation. Management believes that the resulting non-GAAP
financial measure provides useful information to investors regarding the
underlying business trends and performance of the Company`s ongoing operations
and is useful for period over period comparisons of such operations. Medtronic
management eliminates this donation when evaluating the operating performance of
the Company. Investors should consider this non-GAAP measure in addition to, and
not as a substitute for, financial performance measures prepared in accordance
with U.S. GAAP. In addition, this non-GAAP financial measure may not be the same
as similar measures presented by other companies.

(b) The $82 million ($0.07 per share) after-tax ($123 million pre-tax)
restructuring charge is an accumulation of charges recorded in the first and
fourth quarters of fiscal year 2009. As outlined in footnote (b) for the three
months ended April 24, 2009, the Company recorded net after-tax charges of $16
million in the fourth quarter of fiscal year 2009 related to initiatives begun
in that quarter. In addition, the Company recorded after-tax charges of $66
million in the first quarter of fiscal year 2009 that related to a global
realignment initiative that the Company began in the fourth quarter of fiscal
year 2008. The 2008/2009 initiatives focus on shifting resources to those areas
where the Company has the greatest opportunities for growth and streamlining
operations to drive operating leverage. The global realignment initiative
impacts most businesses and certain corporate functions. In addition to
disclosing restructuring charges that are determined in accordance with U.S.
GAAP, Medtronic management believes that in order to properly understand its
short-term and long-term financial trends, investors may find it useful to
consider the impact of excluding these restructuring charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
restructuring charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(c) The $364 million ($0.32 per share) after-tax ($536 million pre-tax) certain
litigation charge is an accumulation of three separate charges recorded
throughout fiscal year 2009. As outlined in footnote (c) for the three months
ended April 24, 2009, the Company recorded a $188 million after-tax ($270
million pre-tax) charge related to a settlement of all royalty disputes with
Johnson & Johnson (J&J) which concern Medtronic`s licensed use of certain
patents. In addition, in the three months ended October 24, 2008, the Company
recorded a $152 million after-tax ($229 million pre-tax) charge related to the
final judgment in separate litigation with Cordis Corporation (Cordis), a
subsidiary of J&J, that originated in October 1997, and $24 million after-tax
($37 million pre-tax) related to the settlement of litigation with Fastenetix
LLC that originated in May 2006. The second quarter 2009 charge related to
litigation with Cordis was in addition to a $243 million pre-tax reserve
recorded in the third quarter of fiscal year 2008. In addition to disclosing
certain litigation charges that are determined in accordance with U.S. GAAP,
Medtronic management believes that in order to properly understand its
short-term and long-term financial trends, investors may find it useful to
consider the impact of excluding these certain litigation charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
certain litigation charges when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition to, and not
as a substitute for, financial performance measures prepared in accordance with
U.S. GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(d) The $614 million ($0.55 per share) after-tax IPR&D charge represents the
cumulative impact of several transactions which took place throughout the fiscal
year including:

-$97 million ($97 million pre-tax) related to the acquisition of Ablation
Frontiers, Inc., which was recorded in the fourth quarter of fiscal year 2009;

-$307 million ($307 million pre-tax) related to the acquisition of Ventor
Technologies, Ltd., which was recorded in the fourth quarter of fiscal year
2009;

-$123 million ($123 million pre-tax) related to the acquisition of CoreValve,
Inc., which was recorded in the fourth quarter of fiscal year 2009;

-$72 million ($72 million after-tax) related to the acquisition of CryoCath
Technologies, Inc. which was recorded in the third quarter of fiscal year 2009;
and

-$15 million ($22 million pre-tax) related to the purchase of certain
intellectual property for use in the Spinal and Diabetes businesses which took
place in the second and fourth quarters of fiscal year 2009.

In each of the above transactions, technological feasibility of the underlying
products had not yet been reached and such technology had no future alternative
use. In addition to disclosing IPR&D charges that are determined in accordance
with U.S. GAAP, Medtronic management believes that in order to properly
understand its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these IPR&D charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
IPR&D charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(e) The $132 million ($0.12 per share) discrete tax adjustment represents a tax
benefit associated with settlements reached in the fourth quarter of fiscal year
2009 with the U.S. Internal Revenue Service, numerous state taxing authorities,
and assessments received from various foreign tax authorities. The years under
review by the U.S. Internal Revenue Service were with respect to fiscal years
2005 and 2006, while the numerous state and foreign audits covered fiscal years
ranging from 1998 through 2008. In addition to disclosing the provision for
income taxes that is determined in accordance with U.S. GAAP, Medtronic
management believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the impact
of excluding this discrete tax adjustment. Management believes that the
resulting non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the Company`s
ongoing operations and is useful for period over period comparisons of such
operations, specifically the effective tax rate. Medtronic management eliminates
this discrete tax adjustment when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition to, and not
as a substitute for, financial performance measures prepared in accordance with
U.S. GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(f) The $47 million ($0.04 per share) after-tax ($78 million pre-tax) special
charge is related to impairment charges recognized on intangible assets
associated with our benign prostatic hyperplasia product line acquired in fiscal
year 2002. In the third quarter of fiscal year 2008, after carefully evaluating
the development of the market relative to our original assumptions and analyzing
our estimated future cash flows utilizing this technology, we determined that
the carrying value of these intangible assets was impaired and a write-down was
necessary. In addition to disclosing special charges that are determined in
accordance with U.S. GAAP, Medtronic management believes that in order to
properly understand its short-term and long-term financial trends, investors may
find it useful to consider the impact of excluding these special charges.
Management believes that the resulting non-GAAP financial measure provides
useful information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
special charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(g) The $33 million ($0.03 per share) after-tax ($45 million pre-tax)
restructuring charge is related to restructuring initiatives that the Company
began in the fourth quarter of fiscal year 2007 and the fourth quarter of fiscal
year 2008. The fourth quarter fiscal year 2007 initiatives were designed to
drive manufacturing efficiencies in our CardioVascular business, downsize our
Physio-Control business due to our voluntary suspension of U.S. shipments, and
rebalance resources within our Cardiac Rhythm Disease Management (CRDM) business
to reflect the market dynamics. As a continuation of our fiscal year 2007
initiatives, in the first quarter of fiscal year 2008 the Company recognized $11
million after-tax expense associated with compensation and early retirement
benefits provided to employees whose employment terminated with the Company in
the first quarter of fiscal year 2008 which could not be accrued in the fourth
quarter of fiscal year 2007. The fourth quarter fiscal year 2008 restructuring
charge of $22 million after-tax is related to a global realignment initiative.
This initiative focuses on shifting resources to those areas where the Company
has the greatest opportunities for growth and streamlining operations to drive
operating leverage. The global realignment initiative impacts most businesses
and certain corporate functions. The Company recorded $3 million of the $22
million after-tax expense within cost of products sold related to inventory
write-offs and production-related asset impairments associated with the global
realignment initiative. In addition to disclosing restructuring charges that are
determined in accordance with U.S. GAAP, Medtronic management believes that in
order to properly understand its short-term and long-term financial trends,
investors may find it useful to consider the impact of excluding these
restructuring charges. Management believes that the resulting non-GAAP financial
measure provides useful information to investors regarding the underlying
business trends and performance of the Company`s ongoing operations and is
useful for period over period comparisons of such operations. Medtronic
management eliminates these restructuring charges when evaluating the operating
performance of the Company. Investors should consider this non-GAAP measure in
addition to, and not as a substitute for, financial performance measures
prepared in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same as similar measures presented by other companies.

(h) The $274 million ($0.24 per share) after-tax certain litigation charges are
related to a $121 million after-tax ($123 million pre-tax) settlement of certain
lawsuits relating to the Marquis line of implantable cardioverter defibrillators
that were subject to a field action announced on February 11, 2005 and a $153
million after-tax ($243 million pre-tax) reserve associated with litigation with
Cordis that originated in October 1997. In addition to disclosing certain
litigation charges that are determined in accordance with U.S. GAAP, Medtronic
management believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the impact
of excluding these certain litigation charges. Management believes that the
resulting non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the Company`s
ongoing operations and is useful for period over period comparisons of such
operations. Medtronic management eliminates these certain litigation charges
when evaluating the operating performance of the Company. Investors should
consider this non-GAAP measure in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP. In
addition, this non-GAAP financial measure may not be the same as similar
measures presented by other companies.

(i) The $388 million ($0.34 per share) after-tax IPR&D charges represent the
cumulative impact of several transactions which took place throughout the fiscal
year including:

-$290 million ($290 million pre-tax) allocated to in-process technology acquired
in the acquisition of Kyphon Inc. which was recorded in the third quarter of
fiscal year 2008;

-$47 million ($42 million pre-tax) related to the acquisition of NDI Medical,
Inc., a development stage company, which was recorded in the fourth quarter of
fiscal year 2008;

-$24 million ($20 million pre-tax) related to the acquisition of Setagon, Inc.,
a development stage company, which was recorded in the third quarter of fiscal
year 2008;

-$18 million ($25 million pre-tax) related to a milestone payment associated
with a royalty bearing, non-exclusive patent cross-licensing agreement with
NeuroPace, Inc. that the Company entered into in the first quarter of fiscal
year 2006 which was recorded in the first quarter of fiscal year 2008; and

-$9 million ($13 million pre-tax) related to the purchase of certain
intellectual property which took place in the first and fourth quarter of fiscal
year 2008.

In each of the above transactions, technological feasibility of the underlying
products had not yet been reached and such technology had no future alternative
use. In addition to disclosing IPR&D charges that are determined in accordance
with U.S. GAAP, Medtronic management believes that in order to properly
understand its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these IPR&D charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company`s ongoing operations and is useful for period over
period comparisons of such operations. Medtronic management eliminates these
IPR&D charges when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same as
similar measures presented by other companies.

MEDTRONIC, INC.
RECONCILIATION OF OUS REVENUE GROWTH AT CONSTANT CURRENCY
(Unaudited)
(in millions)

Three months ended Three months ended Percentage
April 24, 2009 April 25, 2008 Change

OUS Revenue, as reported $ 1,453 $ 1,528 -5 %
Currency Impact (211 ) (a) -
OUS Revenue, comparable currency rates $ 1,664 $ 1,528 9 %

MEDTRONIC, INC.
RECONCILIATION OF OUS REVENUE GROWTH AT CONSTANT CURRENCY
(Unaudited)
(in millions)

Twelve months ended Twelve months ended Percentage
April 24, 2009 April 25, 2008 Change

OUS Revenue, as reported $ 5,602 $ 5,179 8 %
Currency Impact (100 ) (a) -
OUS Revenue, comparable currency rates $ 5,702 $ 5,179 10 %

MEDTRONIC, INC.
RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW
(Unaudited)
(in millions)

Twelve months ended Nine months ended Three months ended
April 24, 2009 January 23, 2009 April 24, 2009

Net cash provided by operating activities $ 3,878 $ 2,755 $ 1,123
Additions to property, plant, and equipment (498 ) (378 ) (120 )
Free cash flow $ 3,380 (b) $ 2,377 (b) $ 1,003 (b)

(a) Medtronic management believes that in order to properly understand
Medtronic`s short-term and long-term financial trends, investors may wish to
consider the impact of foreign currency translation on revenue. In addition,
Medtronic management uses results of operations before currency translation to
evaluate the operational performance of the Company and as a basis for strategic
planning. Investors should consider these non-GAAP measures in addition to, and
not as a substitute for, financial performance measures prepared in accordance
with U.S. GAAP.

(b) Medtronic calculates free cash flow by subtracting additions to property,
plant and equipment from operating cash flows.

MEDTRONIC, INC.
CONSTANT CURRENCY GROWTH BY OPERATING SEGMENT - WORLD WIDE
(Unaudited)

($ millions)
Currency Constant
FY 09 FY 08 Impact Currency
QTR 4 QTR 4 Growth On Growth (a) Growth (a)
REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT $ 1,300 $ 1,363 -5 % -6 % 1 %
Pacing Systems 494 540 -9 % -7 % -2 %
Defibrillation Systems 780 806 -3 % -5 % 2 %
Other 26 17 53 % -29 % 82 %

SPINAL $ 881 $ 869 1 % -3 % 4 %
Core Spinal 512 498 3 % -2 % 5 %
Biologics 215 221 -3 % -2 % -1 %
Kyphon Business 154 150 3 % -3 % 6 %

CARDIOVASCULAR $ 644 $ 643 - % -8 % 8 %
Coronary Stents 213 251 -15 % -7 % -8 %
Other Coronary/Peripheral 119 116 3 % -8 % 11 %
Endovascular 117 76 54 % -13 % 67 %
Revasc & Surgical Therapies 114 115 -1 % -6 % 5 %
Structural Heart Disease 81 85 -5 % -6 % 1 %

NEUROMODULATION $ 389 $ 381 2 % -5 % 7 %
Neuro Implantables 308 308 - % -5 % 5 %
Gastroenterology & Urology 81 73 11 % -5 % 16 %

DIABETES $ 296 $ 275 8 % -6 % 14 %

SURGICAL TECHNOLOGIES $ 235 $ 228 3 % -5 % 8 %
Core Ear, Nose and Throat (ENT) 97 92 5 % -4 % 9 %
Neurologic Technologies 82 82 - % -6 % 6 %
Navigation 56 54 4 % -7 % 11 %

PHYSIO-CONTROL $ 84 $ 101 -17 % -10 % -7 %

TOTAL $ 3,829 $ 3,860 -1 % -6 % 5 %

(a) Medtronic believes that in order to properly understand Medtronic's
short-term and long-term financial trends, investors may wish to consider the
impact of foreign currency translation on revenue. In addition, Medtronic
management uses results of operations before currency translation to evaluate
the operational performance of the Company and as a basis for strategic
planning. Investors should consider these non-GAAP measures in addition to, an
not as a substitute for, financial performance measures prepared in accordance
with U.S. GAAP.

MEDTRONIC, INC.
CONSTANT CURRENCY GROWTH BY OPERATING SEGMENT - WORLD WIDE
(Unaudited)

($ millions)
Currency Constant
Impact Currency
FY 09 FY 08 Growth On Growth (a) Growth (a)
REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT $ 5,014 $ 4,963 1 % -1 % 2 %
Pacing Systems 1,984 2,008 -1 % - % -1 %
Defibrillation Systems 2,962 2,897 2 % -1 % 3 %
Other 68 58 17 % -14 % 31 %

SPINAL $ 3,400 $ 2,982 14 % - % 14 %
Core Spinal 1,951 1,869 4 % - % 4 %
Biologics 840 815 3 % -1 % 4 %
Kyphon Business 609 298 104 % -3 % 107 %

CARDIOVASCULAR $ 2,437 $ 2,131 14 % -1 % 15 %
Coronary Stents 844 710 19 % -1 % 20 %
Other Coronary/Peripheral 448 408 10 % - % 10 %
Endovascular 398 285 40 % -2 % 42 %
Revasc & Surgical Therapies 447 431 4 % - % 4 %
Structural Heart Disease 300 297 1 % -1 % 2 %

NEUROMODULATION $ 1,434 $ 1,311 9 % -1 % 10 %
Neuro Implantables 1,145 1,069 7 % -1 % 8 %
Gastroenterology & Urology 289 242 19 % -2 % 21 %

DIABETES $ 1,114 $ 1,019 9 % -2 % 11 %

SURGICAL TECHNOLOGIES $ 857 $ 780 10 % -1 % 11 %
Core Ear, Nose and Throat (ENT) 352 323 9 % -2 % 11 %
Neurologic Technologies 320 298 7 % -1 % 8 %
Navigation 185 159 16 % -2 % 18 %

PHYSIO-CONTROL $ 343 $ 329 4 % -2 % 6 %

TOTAL $ 14,599 $ 13,515 8 % -1 % 9 %

(a) Medtronic believes that in order to properly understand Medtronic's
short-term and long-term financial trends, investors may wish to consider the
impact of foreign currency translation on revenue. In addition, Medtronic
management uses results of operations before currency translation to evaluate
the operational performance of the Company and as a basis for strategic
planning. Investors should consider these non-GAAP measures in addition to, an
not as a substitute for, financial performance measures prepared in accordance
with U.S. GAAP.

MEDTRONIC, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

April 24, April 25,
2009 2008
(in millions)
ASSETS

Current assets:
Cash and cash equivalents $ 1,271 $ 1,060
Short-term investments 405 553
Accounts receivable, less allowances of $61 and $99, respectively 3,123 3,287
Income tax receivable - 73
Inventories 1,426 1,280
Deferred tax assets, net 549 600
Prepaid expenses and other current assets 630 469

Total current assets 7,404 7,322

Property, plant and equipment, net 2,279 2,221
Goodwill 8,195 7,519
Other intangible assets, net 2,477 2,193
Long-term investments 2,769 2,322
Long-term deferred tax assets, net 65 103
Other assets 416 518

Total assets $ 23,605 $ 22,198

LIABILITIES AND SHAREHOLDERS` EQUITY

Current liabilities:
Short-term borrowings $ 522 $ 1,154
Accounts payable 382 383
Accrued compensation 901 789
Accrued income taxes 130 -
Other accrued expenses 1,034 1,209

Total current liabilities 2,969 3,535

Long-term debt 6,772 5,802
Long-term accrued compensation and retirement benefits 329 304
Long-term accrued income taxes 475 519
Other long-term liabilities 87 502

Total liabilities 10,632 10,662

Commitments and contingencies - -

Shareholders` equity:
Preferred stock- par value $1.00 - -
Common stock- par value $0.10 112 112
Retained earnings 13,063 11,710
Accumulated other comprehensive loss (202 ) (286 )

Total shareholders` equity 12,973 11,536

Total liabilities and shareholders` equity $ 23,605 $ 22,198

MEDTRONIC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Fiscal Year
2009 2008 2007
(in millions)
Operating Activities:
Net earnings $ 2,291 $ 2,231 $ 2,802
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 699 637 583
Special charges - 78 98
IPR&D charges 621 390 -
Provision for doubtful accounts 23 31 31
Deferred income taxes (60 ) (49 ) (236 )
Stock-based compensation 237 217 185
Excess tax benefit from exercise of stock-based awards (24 ) (40 ) (36 )
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable 108 (461 ) (326 )
Inventories (212 ) 30 (24 )
Prepaid expenses and other assets (121 ) 92 (45 )
Accounts payable and accrued liabilities 342 61 17
Other operating assets and liabilities (26 ) 272 (70 )

Net cash provided by operating activities 3,878 3,489 2,979

Investing Activities:
Acquisitions, net of cash acquired (1,624 ) (4,221 ) (8 )
Purchase of intellectual property (165 ) (93 ) (121 )
Additions to property, plant and equipment (498 ) (513 ) (573 )
Purchases of marketable securities (2,960 ) (6,433 ) (11,837 )
Sales and maturities of marketable securities 2,845 8,557 10,894
Other investing activities, net (338 ) (87 ) (56 )

Net cash used in investing activities (2,740 ) (2,790 ) (1,701 )

Financing Activities:
Change in short-term borrowings, net (633 ) 543 45
Payments on long-term debt (300 ) (12 ) (1,880 )
Issuance of long-term debt 1,250 300 -
Dividends to shareholders (843 ) (565 ) (504 )
Issuance of common stock 416 403 331
Excess tax benefit from exercise of stock-based awards 24 40 36
Repurchase of common stock (759 ) (1,544 ) (1,039 )

Net cash used in financing activities (845 ) (835 ) (3,011 )

Effect of exchange rate changes on cash and cash equivalents (82 ) (60 ) (5 )

Net change in cash and cash equivalents 211 (196 ) (1,738 )

Cash and cash equivalents at beginning of period 1,060 1,256 2,994

Cash and cash equivalents at end of period $ 1,271 $ 1,060 $ 1,256

Medtronic, Inc.
Public Relations:
Steve Cragle, 763-505-2345
or
Investor Relations:
Jeff Warren, 763-505-2696

Copyright Business Wire 2009