2009 Health Care Forecast Conference Mike Mussallem Chairman and CEO, Edwards Lifesciences Chairman of the Board, AdvaMed 2009 Health Care Forecast Conference Mike Mussallem Chairman and CEO, Edwards Lifesciences Chairman of the Board, AdvaMed

Edwards Lifesciences Founded by Miles “Lowell” Edwards in 1958 ­ Inventor and visionary, held 60+ patents Partnered with physicians to introduce breakthrough medical devices to the world ­ Albert Starr, Jeremy Swan, William Ganz, Thomas Fogarty, Alain Carpentier, Delos Cosgrove, Alain Cribier Lineage ­ 1958Edwards Laboratories ­ 1968American Hospital Supply Corp. ­ 1984Baxter International Inc. ­ 2000Edwards Lifesciences (NYSE:EW)

Cardiac Surgery Systems Heart Valve Therapy Vascular Sales by Business Critical Care Edwards’ Businesses 47% 36% 8% 5% Hemodynamic Monitoring Sepsis Management Access Products Minimally-Invasive Instruments Cannulae Embolic Protection Clot Management Systems Surgical Accessories Surgical Replacement & Repair Transcatheter Replacement

Advanced Medical Technology Association (AdvaMed) World’s largest medical technology association ­ 1,600+ member companies and subsidiaries Members produce 90% of sales in domestic market, 50% of sales in global market 70%+ of member companies have <200 employees

Medical Device Industry – Different Than Other Health Sectors Companies rely on physician experience, feedback to develop better treatments Device effectiveness depends on physician skill - product training is critical Physician contribution/feedback plays a vital role in continued innovation Collaboration benefits patients

Industry Challenges

Global economic climate

Reimbursement

Patient and patent lawsuits

New leadership – Congress, HHS, FDA, etc.

Comparative effectiveness research

Greater transparency of clinician / industry relationships

It’s the Patient

Helping Patients is Our Life’s Work, and