Stryker Announces Definitive Agreement to Acquire Patient Safety Technologies for $120 Million; $2.22 per Share

Stryker Corporation (NYSE: SYK)announced today a definitive agreement to acquire Patient Safety Technologies,Inc. (PSTX) for $2.22 per share, with an aggregate purchase price of $120million. Patient Safety Technologies conducts its business through its whollyowned subsidiary, SurgiCount Medical, Inc. The company's proprietarySafety-Sponge® System and SurgiCount 360(TM) compliance software help preventRetained Foreign Objects (RFOs) in the operating room, thereby improvingpatient safety and reducing healthcare costs. The System includes bar-codedsurgical sponges and towels, an integrated barcode scanner, and compliancetracking software. 2013 actual revenue through nine months are $14.9 million.RFOs are the most common operating room "Never Event" in the United States.Sponges are the most common retained object, with approximately 2,300incidents reported annually at an average cost per incident of over $400,000.The SurgiCount Safety Sponge System offers a way to eliminate unnecessarycosts from the healthcare system while improving quality of care.  Since its launch in 2006, SurgiCount has established a strong customer base ofover 300 hospitals including several of the leading medical institutions inthe U.S. The Safety-Sponge System will become part of Stryker's Instrumentsdivision's offerings and will augment Stryker Instruments' broad portfolio ofproducts that are designed to optimize the perioperative experience byreducing hazards, streamlining operations, and improving outcomes for patientsand caregivers."We are committed to providing solutions that result in a higher quality ofcare and level of safety for both patients and healthcare professionals," saidTimothy J. Scannell, Group President, MedSurg and Neurotechnology. "Thisacquisition aligns with Stryker's focus on offering products and services thathave demonstrated cost effectiveness and clinical outcomes."The transaction is subject to customary closing conditions including approvalby the stockholders of Patient Safety Technologies and the expiration ortermination of the Hart-Scott-Rodino Antitrust Improvements Act waitingperiod.  The transaction is expected to close in the first quarter of 2014.About StrykerStryker is one of the world's leading medical technology companies and isdedicated to helping healthcare professionals perform their jobs moreefficiently while enhancing patient care. The Company offers a diverse arrayof innovative medical technologies including reconstructive implants, medicaland surgical equipment, and neurotechnology and spine products to help peoplelead more active and more satisfying lives. For more information aboutStryker, please visit www.stryker.com.About Patient Safety Technologies, Inc. and SurgiCount MedicalPatient Safety Technologies, Inc., through its wholly-owned operatingsubsidiary SurgiCount Medical, Inc., provides the Safety-Sponge® System, asolution proven to improve patient safety and reduce healthcare costs bypreventing one of the most common errors in surgery, retained foreign objects.Additional information can be found at www.surgicountmedical.com.ContactsFor media inquiries please contact:Yin Becker, Stryker Corporation, 201-831-5000 or yin.becker@stryker.comFor investor inquiries please contact:Katherine A. Owen, Stryker Corporation, 269-385-2600 orkatherine.owen@stryker.comThis press release contains information that includes or is based onforward-looking statements within the meaning of the federal securities lawthat are subject to various risks and uncertainties that could cause ouractual results to differ materially from those expressed or implied in suchstatements. Such factors include, but are not limited to: weakening ofeconomic conditions that could adversely affect the level of demand for ourproducts; pricing pressures generally, including cost-containment measuresthat could adversely affect the price of or demand for our products; changesin foreign exchange markets; legislative and regulatory actions; unanticipatedissues arising in connection with clinical studies and otherwise that affectU.S. Food and Drug Administration approval of new products; changes inreimbursement levels from third-party payors; a significant increase inproduct liability claims; the ultimate total cost with respect to theRejuvenate and ABG II matter; the impact of investigative and legalproceedings and compliance risks; resolution of tax audits; the impact of thefederal legislation to reform the United States healthcare system; changes infinancial markets; changes in the competitive environment; our ability tointegrate acquisitions, including the acquisition of MAKO Surgical Corp. andPatient Safety Technologies, Inc.; and our ability to realize anticipated costsavings as a result of workforce reductions and other restructuringactivities. Additional information concerning these and other factors arecontained in our filings with the U.S. Securities and Exchange Commission,including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.