New Codes Distinguish the IDET^◊ Procedure from Other Therapies and will Facilitate Appropriate Physician and Hospital Reimbursement

ANDOVER, Mass., OCTOBER 31, 2006 — Smith & Nephew’s (NYSE:SNN; LSE: SN) Endoscopy division announced today that the American Medical Association (AMA) has created two new Category I Current Procedural Terminology (CPT) codes that will describe the company’s INTRADISCAL ELECTROTHERMAL^◊Therapy (IDET^◊) procedure. The new codes will become effective January 1, 2007.

ANDOVER, Mass., Aug. 16, 2006 — A systematic literature review of outcomes from 51 clinical studies and case series finds that the INTRADISCAL ELECTROTHERMAL^◊ Therapy (IDET^◊) procedure would spare up to 65 percent of patients with chronic lower back pain from spinal fusion surgery. In addition, the study also found that IDET^◊ patients experienced similar outcome benefits when compared against spinal fusion. The study is published in the July issue of Pain Physician, the official journal of the American Society of Interventional Pain Physicians (ASIPP).

Meta-Analysis of 17 Published Studies Proves Procedure Effective and Safe

ANDOVER, Mass., Aug. 16, 2006 — Study authors Dr. Gunnar B.J. Andersson, professor and chairman of orthopedic surgery, Rush-Presbyterian-St. Luke’s Medical Center, Chicago, and Dr. Michael Totta, physiatrist of the Spine Center at Orthopedic Associates of Portland in Portland, Maine, systematically synthesized all peer-reviewed published literature describing outcomes following the IDET^◊ procedure involving more than 500 patients. The majority of clinical studies reported outcomes assessed from six to 24-months post-treatment.

The IDET^◊ procedure is featured in a story on WTNH-TV ABC in Hartford, Conn. regarding less invasive treatments for back pain.

Back Pain Puts Strain on Personal Relationships and Work Productivity for Millions of Americans

PADUCAH, Ky., July 6, 2006 ─ A national survey of lower back pain sufferers revealed today that more than half (56 percent) would rather abstain from sex for six months if it meant a break from the pain. Developed by the American Society of Interventional Pain Physicians (ASIPP) and Smith & Nephew Endoscopy, the manufacturers of the INTRADISCAL ELECTROTHERMAL^◊ Therapy (IDET^◊ ) procedure, the survey also shows that personal relationships and work productivity are severely or substantially impacted for over one-third of respondents.

PADUCAH, Ky., Feb. 23, 2006 ― Insurance companies favor fusion surgery over back pain management therapies, according to a recent panel of orthopedic surgeons, interventional radiologists, physiatrists, and pain management specialists from leading academic centers nationwide. Yet fusion surgery is often more than ten times costlier than other methods of managing chronic discogenic lower back pain 1. The panel discussed and examined pain management strategies from medical specialties that routinely work with patients suffering from chronic lower back pain.

ANDOVER, Mass., Dec. 20, 2005 — The Centers for Medicare and Medicaid Services (CMS) is increasing reimbursement for the INTRADISCAL ELECTROTHERMAL^◊(IDET^◊) Annuloplasty procedure and placing it in a more appropriate Ambulatory Payment Classification (APC). The IDET^◊ procedure is a minimally-invasive outpatient procedure that treats spinal discs, and is for patients suffering from chronic discogenic lower back pain.