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Integra LifeSciences Announces Acquisition of Berchtold Medizin-Elektronik GmbH


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Press Release

May 4, 2004

Integra LifeSciences Announces Acquisition of Berchtold Medizin-Elektronik GmbH

Integra LifeSciences Announces Acquisition of Berchtold Medizin-Elektronik GmbH

PLAINSBORO, N.J., May 4, 2004 (PRIMEZONE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today announced that it has acquired Berchtold Medizin-Elektronik GmbH from Berchtold Holding GmbH. Based in Tuttlingen, Germany, Berchtold Medizin-Elektronik manufactures and markets the Elektrotom&reg; line of electrosurgery generators and the Sonotom&reg; ultrasonic surgical aspirator, as well as a broad line of related handpieces, instruments and disposables used in many surgical procedures, including neurosurgery. Berchtold Medizin-Elektronik markets and sells its products to hospitals and physicians primarily through a network of distributors.

Stuart M. Essig, Integra's President and Chief Executive Officer commented, "This acquisition is a significant step in the expansion of our European operations. The acquisition provides us with additional market-leading devices for the European and international markets and an existing infrastructure through which Integra can sell certain of its other products directly into Germany. We expect to align our existing German sales team with Berchtold's and add several additional sales and marketing staff in the coming months."

"This sale will allow the BERCHTOLD Group to focus its resources on its core business consisting of surgical lighting systems, equipment power booms, surgical table systems, and telemedicine," said Theo Fritz, BERCHTOLD's Owner and Chairman. "It is our plan to continue to invest in these high-growth areas where BERCHTOLD holds strong market positions."

Berchtold Medizin-Elektronik has approximately 50 employees in Tuttlingen, Germany, five of which are involved in sales and marketing. Berchtold Holding will provide certain administrative and logistics services to Integra in Germany for a period of time following the acquisition. Integra, which now operates in three separate locations in Germany, plans to consolidate certain of its Germany manufacturing activities in the coming months.

The Elektrotom&reg; is an electosurgery system used to cut and coagulate selected tissue, automatically regulating and adapting the power required for the target tissue. The system is available with both monopolar and bipolar handpieces and accessories. The Sonotom&reg; system applies ultrasonic energy to precisely fragment and emulsify soft tissue, which is subsequently aspirated, while preserving major blood vessels, nerves and elastic fibers. Berchtold's systems have been used internationally in a variety of surgical applications, including neurosurgery.

Through its Selector&reg; Integra and Dissectron&reg; Ultrasonic Aspirator product lines, Integra NeuroSciences™ has gained extensive experience in the development, manufacturing and marketing of ultrasonic surgical systems for use in neurosurgery. Integra expects to continue to offer the Sonotom&reg; products to its international customers, as well as to develop a consolidated platform for its three ultrasonic aspirator offerings. Integra also plans to add Elektrotom&reg; electrosurgery capability to this ultrasonic offering.

Integra NeuroSciences designs, manufactures and sells implants, devices and monitors used in neurosurgery, neurotrauma, and related critical care. Including its ten-person clinical education team, Integra NeuroSciences has a 120-person direct selling effort in the United States and Europe. Integra NeuroSciences also sells its products in approximately 80 countries worldwide through a network of international distributors.

The acquired business generated approximately 5.6 million euros in revenues and 0.7 million euros in pro-forma pre-tax net income for the twelve months ended December 31, 2003. This acquisition is expected to be neutral to Integra's earnings for the remainder of 2004 and 2005 and accretive thereafter. Additional forward-looking information about this acquisition will be discussed on Integra's conference call following the release of our second quarter 2004 earnings on July 28, 2004.

The Frankfurt-based investment bank Freyberg Close Brothers, representing Berchtold Holding GmbH, originated the transaction.

Integra LifeSciences Holdings Corporation is a diversified medical technology company that develops, manufactures, and markets medical devices for use in a variety of applications. The primary applications for our products are neuro-trauma and neurosurgery, plastic and reconstructive surgery and general surgery. Integra is a leader in applying the principles of biotechnology to medical devices that improve patients' quality of life. Our corporate headquarters are in Plainsboro, New Jersey, and we have manufacturing and research facilities located throughout the world. We have approximately 1,000 employees. Please visit our website at (http://www.integra-LS.com).

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning expectations for this newly acquired business and the expected impact of this acquisition on Integra's future financial results. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Among other things, Integra's ability to successfully integrate Berchtold Medizin-Elektronik into its operations could affect the impact of this acquisition on Integra's future financial results. In addition, the economic, competitive, governmental, technological and other factors identified under the heading "Factors That May Affect Our Future Performance" included in the Business section of Integra's Annual Report on Form 10-K for the year ended December 31, 2003 and information contained in subsequent filings with the Securities and Exchange Commission could affect actual results.

CONTACT: Integra LifeSciences Holdings Corporation
John B. Henneman, III
Executive Vice President
Chief Administrative Officer
(609) 936-2481
jhenneman@Integra-LS.com
or
Maria Platsis
Director of Corporate Development
and Investor Relations
(609) 936-2333
mplatsis@Integra-LS.com