Applied Medical Secures Settlement Prohibiting a Johnson & Johnson Company’s Advertising Claims

Applied Medical to Pursue Post-Trial Motions to Overturn Covidien Infringement Verdict

Orange County, CA, May 28, 2010. Applied Medical announced today that it has secured a settlement prohibiting a Johnson & Johnson company, Ethicon Endo-Surgery, from making certain advertising claims concerning trocar products.

In May 2009, Applied Medical filed a lawsuit against Ethicon Endo-Surgery in the United States District Court for the Central District of California. The lawsuit charged that Ethicon Endo-Surgery engaged in false advertising of its Xcel bladeless trocar products, and used those false advertising claims to interfere with customers’ evaluations of Applied Medical’s trocars. In March 2010, the court narrowed the scope of certain false advertising claims at issue based solely on the timing of their assertion, not their validity. As a result, Ethicon Endo-Surgery avoided defending the validity of those alleged false statements in court.

Pursuant to the settlement agreement, Ethicon Endo-Surgery agreed that it will not advertise or publicly claim in any way any of the following remaining claims concerning the attributes of certain of its Xcel trocars in comparison with Applied Medical’s bladeless trocars:

Ethicon Endo-Surgery also agreed that it will not advertise or publicly make any of the following statements or representations regarding Applied Medical trocars:

“Applied believes the lawsuit and settlement will enable clinicians to rely on peer-reviewed scientific research, and avoid the confusion generated by unsubstantiated advertising claims,” said Applied Medical’s Surgical Group President, Gary Johnson.

About Applied Medical, a New Generation Medical Company.

Applied Medical is a new generation medical device company committed to the pursuit of sustainable, progressive health care solutions. Applied designs, manufactures and distributes innovative surgical products that enable enhanced patient outcomes while providing cost effective procedures and techniques.

Contact:
Mary Jo Stegwell, Senior Vice President, Corporate Communications, 949-713-8000.

Applied Medical to Pursue Post-Trial Motions to Overturn Covidien Infringement Verdict

Orange County, Calif., (March 23, 2010) – Applied Medical announced today that a United States District Court jury for the Eastern District of Texas returned a binding verdict of invalidity of two claims of a Covidien patent covering trocar seal technology. Applied Medical also noted that the jury found Claim 6 of U.S. Patent No. 5,895,377 to be infringed by Applied Medical's older generation Kii™ and Universal® access systems. Applied Medical has progressed to a newer generation of Kii and Universal access systems. Moreover, Applied Medical believes the jury findings of infringement of the prior generation devices are contrary to the facts presented at trial. Applied Medical will continue to pursue post-trial motions seeking to overturn the infringement verdict. “While we are pleased with the invalidity findings, we are disappointed that the jury returned an infringement verdict of ‘377 patent despite the evidence presented at trial. We maintain an unyielding belief that we have not infringed any valid U.S. patents," said Applied Medical’s Surgical Group President, Gary Johnson.

About Applied Medical Applied Medical is a new generation medical device company committed to the pursuit of sustainable, progressive health care solutions. Applied designs, manufactures and distributes innovative surgical products that enable enhanced patient outcomes while providing cost effective procedures and techniques. For more information, visit www.appliedmedical.com.

Contact: Mary Jo Stegwell, Senior Vice President, Corporate Communications, 949-713-8000.

Orange County, California, JUNE 17, 2009. Applied Medical was recently selected to participate in the Premier healthcare alliance’s first Innovation Celebration, an annual event to celebrate advances in healthcare while highlighting healthcare industry suppliers committed to innovation and improving patient outcomes.

Premier’s Innovation Celebration highlights innovative solutions that bring a positive impact to healthcare delivery. The 26 products showcased were selected by a cross-functional team of Premier alliance members and staff of varying expertise, including clinical product planners, clinical field specialists, pharmacists, supply chain professionals, materials management and nurses.

Premier contracts with more than 800 suppliers and Applied Medical was one of 24 Premier contracted suppliers selected to participate in the Innovation Celebration.

"We are very excited that Premier has created this forum to recognize and introduce the latest innovations in the healthcare arena to its members," commented Gary Johnson, President of the Surgical Group at Applied Medical. "Through our dedication to superior clinical outcomes, value and services, Applied has grown to be the number two supplier of trocars in the US. The Fios® first entry is one of our newest solutions featuring enabling technology that has the potential to become the gold standard for the establishment of pneumoperitoneum for any laparoscopic procedure."

Fios® first entry combines the benefits of an Optical Trocar with the functionality of pre-insufflation. Under direct vision, the Fios system uses Sequential Helix® technology to separate tissue layers, gaining initial access and minimizing the risk of injury by establishing pneumoperitoneum with only a 3mm insertion into the peritoneal cavity.

"The Innovation Celebration is a unique opportunity to unveil revolutionary concepts and developments in the healthcare industry," said Premier Purchasing Partners President Mike Alkire. "Similar to the Premier alliance, these suppliers are committed to innovation that leads to improved quality and reduced costs, and we’re happy to showcase their efforts to our alliance members."

Innovation Celebration participants were featured on June 16 at the 2009 Premier Annual Breakthroughs Conference and Exhibition in Anaheim, California. Basic criteria for selection included solutions that displayed uniqueness, as well as solutions that have an impact on an unmet medical need.

For more information, please visit: http://www.premierinc.com/about/events-education/breakthroughs/2009/supplier/innovation-celebration.jsp

About Premier Inc., 2006 Malcolm Baldrige National Quality Award recipient The Premier healthcare alliance is more than 2,100 U.S. hospitals and 58,000-plus other healthcare sites working together to improve healthcare quality and affordability. Premier maintains the nation's most comprehensive repository of clinical, financial and outcomes information and operates a leading healthcare purchasing network. A world leader in helping deliver measurable improvements in care, Premier works with the Centers for Medicare & Medicaid Services and the United Kingdom's National Health Service North West to improve hospital performance. Premier has offices in San Diego, Charlotte, N.C., Philadelphia and Washington.

About Applied Medical, a New Generation Medical Company. Applied Medical is a quality-focused organization with a goal of providing exceptionally innovative surgical products that enhance procedural and patient outcomes. An advocate of listening to the customer, Applied addresses evolving clinical and economic needs through innovative practices and technology. Applied Medical is a highly integrated developer, manufacturer and marketer of specialized devices for Minimally Invasive Surgery, Cardiovascular, Vascular, Urology and General Surgery.

Orange County, California, June 22, 2007 - Applied Medical today announced that it has been recognized by the Premier healthcare alliance as a winner of the 2007 Pinnacle Award for supplier performance that meets and exceeds the expectations of Premier and its members.