Yeraze's Domain 3.0

Biomet, Inc. reported record sales and adjusted earnings results (non-GAAP) today for its fiscal year 2006 and fourth quarter ended May 31, 2006. Adjusted results for the fourth quarter and fiscal year 2006, which are non-GAAP measures, exclude the following one-time items: $9 million in connection with the separation package payable to former President and CEO Dane A. Miller, Ph.D.; $5.4 million for expenses related to the Company’s review and reorganization of its EBI operations; $4.8 million related to the discontinuation of the Acumen Surgical Navigation product line and the Company’s investment in Z-KAT, Inc.; and $2.6 million for a cross-licensing and settlement agreement between Biomet Biologics, Inc. and Cytomedix, Inc. Adjusted results for fiscal year 2005, which are non-GAAP measures, exclude the impact of inventory step-up related to the March 2004 acquisition of Merck KGaA’s interest in the Biomet Merck joint venture and the June 2004 acquisition of Interpore International, Inc.

Dr. Miller’s retirement was announced in a Biomet press release dated March 27, 2006, and the separation package is detailed in Biomet’s form 8-K filed with the Securities and Exchange Commission on May 10, 2006. As a result of continued underperformance of the Company’s EBI subsidiary, during the fourth quarter the Company conducted a management review and reorganization, including management changes resulting in severance pay agreements and relocation packages. Biomet discontinued the Acumen product line and is researching surgical navigation options in order to offer surgeons improved solutions. The agreement with Cytomedix provides Biomet Biologics with a worldwide license under the “Knighton” patent.