Parkinson’s Disease Essential Tremor Chronic Pain Gastroparesis Urinary Incontinence Dystonia Spasticity $15B annual revenue growing at 12-15% $60B market cap 120 Countries > 5 million patients /years $15B annual revenue growing at 12-15% $60B market cap 120 Countries > 5 million patients /years CHRONIC DEGENERATIVE DISEASES IMPLANTS IMPLANTS

Demographics Drive Demand As the Average Age of the Population Is Increasing… % of Population Over 65 Years of Age Source: World Health Organization 25% 31% 32% 36% 40% 17% 21% 25% 26% 0%10%20%30%40%50% US UK France Germany Italy Japan

Degenerative Diseases Will Continue to Be Strong Because People Are Living Longer… Age 60 – 2 Billion Age 80 – 380 Million Age 100 – 2 Million Worldwide Population by the Year 2050 Source: World Health Organization, Population Report 2004

Healthcare Costs Will Continue to Increase … Not Only in the US … By 2016, health care will approximate $4.1 trillion, 20% of GDP U.S. Health Expenditures and as a % of GDP $Trillions Source: Office of the Actuary – Centers for Medicare & Medicaid Services 14% 16% 17% 18% 20%

ImplantableDevices Implantable Devices Nanotech PolymersMEMS PolymersMEMS CommunicationTechnologyCommunicationTechnology IT/Bio- Informatics InformaticsIT/Bio- BiologicsProteinssiRNA Cell Therapy GenesBiologicsProteinssiRNA Genes Imaging & Navigation Navigation Our Challenge convergence Where? How? Business Model Business Model?

Themes for the Decade Demographics Swell Patient Population Chronic Degenerative Diseases Prevail “Personalized” Medicine replaces Population Medicine Restoration replaces Palliation –Biologics replace small molecules Communication/Information Technologies Converge with Devices Imaging and Navigation Facilitate Less Invasive Diagnosis and Treatment Material Sciences Ascend nano/MEMS/polymers

7% 6% 7% 8% 6% 9% 7% 6% 1% 4% 2% 1% 2% 3% 2% 3%6% 1% Japan Switzerland Austria Nordic Region Belgium Netherlands UK and Ireland Germany France Italy Spain Portugal 8% 9% 8% 9% 8% 10% 11% 8% 9% 11% 8% % of GDP for Public HC 2002% of GDP for Private HC 2002 Source: World Health Organization But, Also Around the World … … Even Though Spending Rates Vary by Country