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Smith & Nephew Orthopaedics and BrainLAB Announce Exclusive Computer-Assisted Surgery Development Agreement

MEMPHIS, Tenn. and MUNICH, Feb. 25 /PRNewswire/ -- Smith & Nephew's Orthopaedics business and BrainLAB today announce an agreement by which BrainLAB will become the exclusive vendor for developing and supporting computer-assisted surgical technologies for Smith & Nephew's high performance hip and knee implants.

Starting in March 2009, Munich-based BrainLAB will begin work integrating the Smith & Nephew portfolio of instruments, implants and pre-existing navigation technology into their proprietary systems. BrainLAB's expertise and leading market share will extend the success of Smith & Nephew in this arena, building on the innovations introduced within the implant maker's PiGALILEO system. For instance, the exclusive PiGALILEO ACCULIGN(TM) motorized positioning guide will be a central component of future development, and will remain exclusive to Smith & Nephew implant-specific applications.

"Relying exclusively on navigation from BrainLAB, the market and technology leader for computer assisted surgery, Smith & Nephew can focus more of our resources on our core business - the design, development, marketing and sale of orthopaedic implants," says Joseph DeVivo, president of Smith & Nephew Orthopaedics. "This supports our strategy to be the preferred brand of active patients while partnering with healthcare professionals to deliver innovative hip, knee and trauma portfolios."

Under the agreement, Smith & Nephew will provide marketing, sales support, training, and post-installation clinical support, while BrainLAB will execute sales of the navigation equipment, as well as applications training and service. Smith & Nephew will continue to support its base of existing computer-navigation customers who use its PiGALILEO and AchieveCAS(TM) systems.

This is not the first agreement between the two companies. Since 2003, BrainLAB has introduced applications globally that accommodate Smith & Nephew implants, though not as part of an exclusive development deal. BrainLAB will continue its open platform strategy supporting the orthopaedic market.

"Our expanded relationship with Smith & Nephew and their expertise in the development of high performance knee and hip implants strengthens our ability to provide smarter and more efficient computer-assisted surgery solutions that improve patient outcomes," says Marc Mackey, Global Product Line Director, BrainLAB Orthopedics. "Together, we will work to meet and exceed objectives for our agreement and respective businesses."

About Smith & Nephew

Smith & Nephew is a global medical technology business, specializing in Orthopaedics, including Reconstruction, Trauma and Clinical Therapies; Endoscopy and Advanced Wound Management. 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 2008 were $3.8 billion.

About BrainLAB

BrainLAB develops, manufactures and markets software-driven medical technology that enables procedures that are more precise, less invasive, and also less expensive than traditional treatments.

Among the core products are image-guided systems that provide highly accurate real-time information used for navigation during surgical procedures. This utility has been further expanded to serve as a computer terminal for physicians to more effectively access and interpret diagnostic scans and other digital medical information for better informed decisions.

BrainLAB solutions allow expansion from a single system to operating suites to digitally integrated hospitals covering all subspecialties from neurosurgery, orthopedics, ENT, CMF to spine & trauma and oncology. With 3300 systems installed in over 75 countries, BrainLAB is a market leader in image- guided technology.

The privately held BrainLAB group, founded in 1989, is headquartered in Munich, Germany, and today employs 1000 people in 16 offices across Europe, Asia, Australia, North and South America.

For more information, visit BrainLAB at

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding planned growth in our business and in our trading margins discussed under "Outlook" are forward-looking statements as are discussions of our product pipeline. These statements, as well as the phrases "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions, are generally intended to identify forward-looking statements. Such forward- looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof. All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing. Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Trademark of Smith & Nephew. Certain marks registered US Patent and Trademark Office.

SOURCE Smith & Nephew
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