351346--7/30/2007--BIOMET_INC

related topics
{financial, litigation, operation}
{product, market, service}
{product, liability, claim}
{operation, international, foreign}
{customer, product, revenue}
{personnel, key, retain}
{stock, price, operating}
{operation, natural, condition}
{cost, regulation, environmental}
The Company s future profitability depends on the success of the Company s principal product lines. If the Company is unable to continue to develop and market new products and technologies in a timely manner, the demand for the Company s products may decrease or the Company s products could become obsolete, and the Company s revenue and profitability may decline. The Company and the Company s customers are subject to substantial government regulation and compliance with these regulations can have a material adverse effect on the Company s business. The Company, like other companies in the orthopedic industry, is involved in ongoing investigations by the U.S. Department of Justice, the results of which may adversely impact the Company s business and results of operations. The Company conducts a significant amount of the Company s sales activity outside of the United States, which subjects the Company to additional business risks and may cause the Company s profitability to decline due to increased costs. Sales may decline if the Company s customers do not receive adequate levels of reimbursement from third-party payors for the Company s products and if certain types of healthcare programs are adopted in the Company s key markets. The Company is subject to cost-containment efforts of group purchasing organizations, which may have a material adverse effect on the Company s results of operations and financial condition. Loss of the Company s key management and other personnel, or an inability to attract such management and other personnel, could impact the Company s business. Increased costs of retaining existing independent sales agents of the Company s products have negatively affected the Company s results of operations and if the Company fails to retain the Company s existing relationships with these independent sales agents or establish relationships with different agents, the Company s results of operations may be negatively impacted. The Company s business may be harmed as a result of litigation. A natural or man-made disaster could have a material adverse effect on the Company s business. Risks Relating to the Stock Options Investigation and the Merger The Company s review of historical stock option granting practices and restatement of consolidated financial statements may result in future litigation or regulatory inquiries, which could harm the Company s financial results. The Company has been named as a party to a number of shareholder derivative lawsuits relating to the Company s historical stock option grant practices, and the Company may be named in additional lawsuits in the future. This litigation could become time consuming and expensive and could result in the payment of significant judgments and settlements, which could have a material adverse effect on the Company s results of operations and financial condition. The Company is subject to litigation related to the Merger. Biomet s controlling shareholder may have interests that conflict with the interests of other stakeholders.

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