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Synergetics Signs Definitive Agreement with Stryker Covering the Omni® Ultrasonic Aspirator Product Line


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© Business Wire 2009
2009-11-10 22:40:06 -

Synergetics USA, Inc. (NASDAQ: SURG) today announced that it had signed a definitive agreement with Stryker Corporation (“Stryker”) in conjunction with the planned acquisition by Stryker of certain assets from Mutoh Co., Ltd. and its affiliates (Japan) (“Mutoh”) used to produce the Sonopet Ultrasonic Aspirator control consoles and handpieces (currently marketed under the Omni ® brand by Synergetics in the U.S.,

Canada and several other countries). The agreement provides for Synergetics to do the following: sell to Stryker certain assets associated with the marketing and sales of the Mutoh console and handpiece products; supply disposable ultrasonic instrument tips and certain other consumable products used in conjunction with the Sonopet/Omni ® ultrasonic aspirator console and handpieces; and pursue certain development projects for new products associated with Stryker’s intraoperative ultrasound products. The closings of the transactions are subject to certain agreed conditions.

The parties are cooperating to ensure a smooth transition and uninterrupted service to Synergetics’ customers. Synergetics will continue to sell and service the Sonopet and Omni ® products until the transactions are closed, after which time Stryker plans to continue these activities within the medical field.

“The Mutoh Sonopet ultrasonic aspirator equipment has proven to be a remarkable advance in precise intraoperative fragmentation and emulsification of soft tissue and bone, which in conjunction with Synergetics’ ultrasonic instrument tips, have expanded the surgeon’s resources in performing neurocranial and neurospinal surgery. With Stryker marketing these products in the future, customers can look forward to the excellent customer support and service for which Stryker is well known,” stated David M. Hable, President and Chief Executive Officer of Synergetics.

“We look forward to this expanded relationship with Stryker. In preparation, we have been adjusting and streamlining our organization to ensure we are ready to support the transfer of certain assets to Stryker, the supply of Synergetics’ products used in conjunction with the ultrasonic aspirator products, the joint development programs and the Stryker sales and marketing program,” concluded Mr. Hable.

The Omni ® product line, including the console and handpieces manufactured by Mutoh in Japan, and the instrument tips and other disposable products manufactured by Synergetics in its O’Fallon, Missouri facility, accounted for approximately $3.5 million and $4.1 million respectively of Synergetics’ revenue in the trailing twelve months ending October 31, 2009.

About Synergetics USA, Inc.


Synergetics USA, Inc. is a leading supplier of precision microsurgery instrumentation. Through continuous improvement and development of our people, our mission is to design, manufacture and market innovative microsurgical instruments and consumables of the highest quality in order to assist and enable surgeons around the world to provide a better quality of life for their patients. The Company’s primary focus is on the microsurgical disciplines of ophthalmology and neurosurgery. Our distribution channels include a combination of direct and independent sales organizations and important strategic alliances with market leaders. The Company’s product lines focus upon precision engineered, microsurgical, hand-held instruments and the microscopic delivery of laser energy, ultrasound, electrosurgery, illumination and irrigation, often delivered in multiple combinations. The Company’s website address is www.synergeticsusa.com : .

About Stryker Corporation


Stryker Corporation is one of the world’s leading medical technology companies with the most broadly based range of products in orthopaedics and a significant presence in other medical specialties. Stryker works with respected medical professionals to help people lead more active and satisfying lives and to reduce healthcare costs. The Company’s products include implants used in joint replacement, trauma, craniomaxillofacial and spinal surgeries; biologics; surgical, neurologic, ear, nose and throat and interventional pain equipment; endoscopic, surgical navigation, communications and digital imaging systems; as well as patient handling and emergency medical equipment. The Company’s website address is www.stryker.com : .

Forward-Looking Statements

Some statements in this release may be “forward-looking statements” for the purposes of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important facts that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These facts, risks and uncertainties are discussed in Synergetics’ Annual Report on Form 10-K for the year ended July 31, 2009, as updated from time to time in our filings with the Securities and Exchange Commission.

Synergetics USA, Inc.Pamela G. Boone, Chief Financial Officer,

636-939-5100 www.synergeticsusa.com :


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