Jury Awards Medtronic $51 Million in Patent Case; BrainLAB AG Found to Infringe Surgical Navigation Patents

Jury Awards Medtronic $51 Million in Patent Case; BrainLAB AG Found to Infringe Surgical Navigation Patents MINNEAPOLIS--(BUSINESS WIRE)--Sept. 30, 2005--Medtronic, Inc. (NYSE:MDT) announced that a jury in the U.S. District Court in Denver awarded $51 million to Medtronic Navigation in a longstanding dispute with BrainLAB AG, a German company, involving four patents related to image-guided surgical techniques and devices. Medtronic Navigation claimed that BrainLAB AG's VectorVision, Kolibri, Exactrac, and BrainSuite infringed claims of four patents held by Medtronic. Details of the verdict are as follows: -- All the accused BrainLAB products infringe the Bucholz and Roberts patents, -- All the accused BrainLAB products infringe the Heilbrun '101 "machine vision" patent, -- All the accused BrainLAB products, except Exactrac, infringe the Heilbrun '318 "pattern recognition" patent, and -- The jury awarded total damages of $51 million. The Bucholz patent is known as the "freehand" patent because it frees surgeons from the need to use a cumbersome, mechanical device connected to the patient's head in order to use surgical instruments with precision. The Bucholz invention provides a surgical navigation system that could track surgical instruments in the hand of the surgeon and display the exact location of the instrument in relation to the patient's body and prior body scans. The Roberts patent integrated pre-operative scans and contours or outlines of tumors or other structures into the view of a surgeon's microscope so they could not only see the part of the patient being operated on but also exact outlines, such as a tumor, so the surgeon could remove the unhealthy tissue without harming adjacent healthy tissue. The Heilbrun patents, including one known as "machine vision," brought the benefit of scanning technology, CTs, and MRIs, into the operating room allowing a surgeon to operate as though with X-ray vision. "We will always place a premium on our intellectual property and are extremely happy with the jury's decision in this case," said Pete Wehrly, Medtronic vice president and president of Medtronic's Spinal and Navigation businesses. This case was filed in May 1998. About Medtronic Navigation Medtronic Navigation is the leading supplier of integrated image-guided surgery products in the world. Based in Boulder County, Colorado, Medtronic Navigation is focused on research to enhance current imaging systems and develop new image-guided surgery applications. Medtronic Navigation uses extensive research and development and strategic partnerships giving surgeons and their patients the safest and most effective imaging devices available in the world. About Medtronic Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology - alleviating pain, restoring health, and extending life for millions of people around the world. Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's Annual Report on Form 10-K for the year ended April 29, 2005. Actual results may differ materially from anticipated results.

Contacts Medtronic, Inc., Minneapolis Investor Relations: Rachael Scherer, 763-505-2694 or Public Relations: Rich Fischer, 763-505-2975