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Stryker Release Confirms Settlement Deal Related to Orthopaedics Unit, Has Recorded $1.425B in Charges

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Howmedica Osteonics Corp. (referred
to as "Stryker Orthopaedics"), a subsidiary of Stryker Corporation, and
Court-appointed committees of attorneys representing Rejuvenate Modular-Neck
and ABG II Modular-Neck plaintiffs in New Jersey Multicounty and Federal
Multidistrict litigations announced a Settlement Agreement to compensate
eligible U.S. patients who had surgery to replace their Rejuvenate
Modular-Neck hip stem and/or ABG II Modular-Neck hip stem, known as a revision
surgery, prior to November 3, 2014.

The Settlement Agreement follows from a successful early mediation program
initiated by New Jersey Superior Court Judge Brian R. Martinotti and efforts
by the chief mediator, former United States Magistrate Judge Diane M. Welsh. 
The success of the mediation process led to the resolution of multiple suits
and claims pending in the federal courts and other states. "The health and
well-being of patients is Stryker's top priority," said Bill Huffnagle,
President, Reconstructive Division, Stryker Orthopaedics.  "Following our
voluntary recall and our patient support program for recall related care,
this  Settlement Program provides  patients compensation in a fair, timely and
efficient manner."

Based on the information that has been received to date, Stryker Corporation
has recorded charges to earnings totaling $1.425 billion representing the
actuarially determined low end of the range of probable loss to resolve these
matters and no additional charge to earnings is being recorded in connection
with entering into the Settlement Agreement.  The ultimate cost to entirely
resolve these matters will depend on many factors that are difficult to
predict and may be materially different than the amounts accrued to date. 
Further charges to earnings may need to be recorded in the future as
additional information related to patient enrollment in the Settlement Program
becomes available.  It is expected that a majority of the payments under the
Settlement Agreement will be made by the end of 2015.

Settlement Program
For eligible U.S. Patients Who Had Surgery to Remove Their Rejuvenate
Modular-Neck Hip Stem and/or ABG II Modular-Neck Hip Stem Prior to November 3,
2014.  The Settlement Program is available to eligible United States patients
who had revision surgery for reasons related to the voluntary recall of the
modular-neck hip stems prior to November 3, 2014.

Patients eligible for compensation under the Settlement Program should speak
with their attorney, if they have one, or contact the Settlement Program
claims administrator at www.strykermodularhipsettlement.com or
1-855-382-6404.  Patients do not need an attorney to participate in the
Settlement Program.

For U.S. Patients Who Have Not Had Surgery to Remove their Rejuvenate
Modular-Neck Hip Stem and/or ABG II Modular-Neck Hip Stem Prior to November 3,
2014.

The existing Broadspire program offering support for recall-related care
continues to be available. Patients are encouraged to visit
www.aboutstryker.com/modularneckstems.com or call 1-888-317-0200 for more
information.  Patients do not need an attorney to participate in the
Broadspire program.

Status of Litigation
The Hon. Brian R. Martinotti of the Superior Court of New Jersey, Bergen
County is presiding over the New Jersey Multicounty Litigation, In Re Stryker
Rejuvenate Hip Stem and ABG II Modular Hip Stem Litigation, Master Docket No.
BER-L-936-13, Case Code 296.  United States District Court Judge Donovan W.
Frank and United States Magistrate Judge Franklin L. Noel for the District of
Minnesota are presiding over the federal Multidistrict Litigation, In re:
Stryker Rejuvenate and ABG II Hip Implant Products Liability Litigation, MDL
Docket No. 13-2441.  The Settlement Agreement was presented to the above
courts today.

The Settlement Agreement will help bring to a close significant Rejuvenate
Modular-Neck and ABG II Modular-Neck litigation activity in the U.S.  Some
lawsuits, however, will remain and Stryker Orthopaedics will continue to
defend against remaining claims.

For more information about the Settlement Program, please visit
www.strykermodularhipsettlement.com.

Stryker is one of the world's leading medical technology companies and
together with our customers, we are driven to make healthcare better. The
Company offers a diverse array of innovative medical technologies, including
reconstructive, medical and surgical, and neurotechnology and spine products
to help people lead more active and more satisfying lives. Stryker products
and services are available in over 100 countries around the world. Please
contact us for more information at www.stryker.com.

 

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