Presenter Disclosure Information William Hawkins Chairman and CEO, Medtronic Inc. FINANCIAL DISCLOSURE: Chairman and CEO, Medtronic Inc. UNLABELED/UNAPPROVED USES DISCLOSURE: N/A

Bill Hawkins Chairman and CEO, Medtronic November 16, 2009 Collaboration, Innovation and Restoring the Public Trust

Medical technology has enabled remarkable advances in the treatment of chronic diseases Implantable cardiac pacemaker Heart valves Implantable defibrillator Coronary stents Balloon angioplasty CAT scan Cardiac resynchronizationPerfusion systems Beating heart surgery Transvenous leads External pacemaker Insulin pumps MRI & advanced imaging 60% reduction! YEAR DEATHS PER 100,000

Collaboration is vital to the medical technology “innovation ecosystem” Regulators Medical Associations Policymakers Clinical Community Hospitals Academia Industry Advocacy

Physician-industry collaboration plays a critical role Physician collaboratio n Invention and New Ideas Selection Criteria and Indications Implantation Techniques and Technologies Clinical Insights Product Improvement Clinical Trials and Regulatory Support Training and Education Long-term Performance Assessment

Many of today’s most important medical devices are the result of collaborative innovation with physicians Diabetes Cardiovascular Disease Cardiac Rhythm Disorders Neurological Disorders Spinal Conditions Musculoskeletal Trauma

This is particularly true in the areas of education and training and essential to the well-being of patients Different from pharmaceuticals “Bedside to bench to bedside” Therapies are sophisticated and procedure-based Expert training optimizes therapy effectiveness Demanded for patient safety

Trust in this model has been eroded as a result of highly publicized conflicts of interest TUESDAY, AUGUST 18, 2009 Probing Doctors’ Ties to Industry By Ibby Caputo Report decries drug makers’ perks for MDs; Providers of care are urged to shun financial benefits By Matthew Perrone April 29, 2009 Side Effects Are Doctors’ Loyalties Divided? Faculty disclose outside payments Some UW doctors get 6-figure sums from drug, medical firms By John Fauber JUNE 21, 2009 JAN. 27, 2009 Lawmakers Reintroduce Bill on Industry-Physician Gifts Grassley works to disclose financial ties between drug companies and doctors JAN. 22, 2009 Senator Chuck Grassley News Release TUESDAY, MAY 19, 2009 Senator Asks About Doctor Who Army Says Falsified G.I. Study By Barry Meier and Duff Wilson

Medtronic has always been a leader in this area Aligned with our mission Defines our culture and values Cornerstone of our ethics and compliance program Provides clear policies and guidance for business practices, including our customer interactions Required for all employees worldwide Early champion: AdvaMed Code of Ethics

As an industry we have made progress… Edwards Lifesciences to Disclose Financial Relationships with U.S. Physicians Eli Lilly to Launch Physician Payment Database Physician Payment Sunshine: Merck Joins the Act Medtronic to Voluntarily Disclose Payments to U.S. Physicians …but we can and MUST do better

The Physician Payments Sunshine Act An important first step towards transparency Key component of healthcare reform Levels the playing field Provides a uniform standard Proprietary information must be protected

12 Our evolving approach will continue to reinforce the benefits of collaboration while restoring the public trust CollaborationInnovation Improved Patient Outcomes [ REINFORCE [

Principled basis for industry and physician collaboration Sanctity of MD- patient relationship Minimize biases that could affect the objectivity required for optimum medical decision making Defined needs and roles All physician roles will be defined and disclosed to demonstrate their intentions All work will meet pre-specified needs Transparency and external oversight Physician activity will be documented and disclosed to the public Engage objective external medical, social, and ethical experts to review our practices We will continue to lead consistent with a set of principles that will guide our path forward

Angelina Henderson U.S. Cardiac Resynchronization Therapy to treat congestive heart failure Chima Miyaori Japan Microdebrider to remove tonsils causing sleep apnea Lina Tedesco Italy InterStim Therapy to treat voiding dysfunctions Renan Altendorff Brazil Insulin pump to control diabetes David Mangram U.S. Intrathecal Baclofen Therapy to treat symptoms of stroke Irene Chettiar India Activa DBS Therapy to treat Dystonia It’s not just about “Public” trust, it’s about THEIR trust