LISI S.A. — M&A Activity 2009

Dec 8, 2009

Belfort, December 8th, 2009

LISI MEDICAL, A SUBSIDIARY OF THE LISI GROUP, ANNOUNCES EXTERNAL GROWTH PROJECT AND MULTI-YEAR SUPPLY AGREEMENT WITH STRYKER CORPORATION

LISI Group (Euronext Paris ISIN code FR0000050353 – FII) announced that it has entered into exclusive negotiations with Stryker Corporation (NYSE:SYK) to:

• acquire the manufacturing business of Stryker's Benoist Girard facility located in Caen-Hérouville (France); and
• manufacture and supply forged orthopaedics components to Stryker over a five-year period.

A firm offer for the acquisition and the supply agreement has been submitted by LISI. Benoist Girard's works council has been convened to review the proposed transaction and will be invited to deliver its opinion in this respect. Once the consultation with the Benoist Girard's works council has been completed, and if such firm offer is accepted by Stryker, the proposed transaction is expected to become effective before the end of the first quarter 2010.

With this strategic move in a high growth potential market, LISI MEDICAL would not only enhance its production footprint but also become a supplier to one of the world's leaders in medical technology.

The Benoist Girard facility has been fully owned by Stryker since 1998. A staff of approximately 250 produces a variety of orthopaedic implants and instruments in the facility. This acquisition would allow LISI MEDICAL to strengthen its position as a world-class contracting company specialized in the manufacturing of implants and ancillaries.

The proposed agreement with Stryker would bring LISI MEDICAL several additional major benefits, such as a unique access to the world of forged components in the reconstructive sector and a significant boost to its existing market share in the USA, the world's largest market for this segment.

"By integrating the forging and finishing capabilities of Stryker's plant in Caen into LISI MEDICAL's existing industrial organization in France, Morocco and the USA, we will be ideally positioned to serve customers worldwide, as well as to provide our growing customer base with our unique concept of Manufacturing Excellence for Life Technologies" said Mr. Yves BONICEL, Chief Executive Officer of LISI MEDICAL.

LISI is a worldwide leading manufacturer of fasteners and assembly components for the Aerospace, Medical, Automotive, and Fragrance-Cosmetics industries. The LISI share is traded on the Eurolist stock exchange, section B and is part of the CAC MID 100 – Next 150 index under ISIN Code FR 0000050353. LISI MEDICAL, a division that comprises Hugueny, Jeropa and Seignol, specializes in the subcontracting of medical implants for groups that develop medical solutions. Its industrial facilities are located in Lyon (France), Tangier (Morocco) and Escondido (California - USA). LISI Group 2008 revenues were 844 million euros, of which 24 million euros for LISI MEDICAL.

Stryker Corporation is one of the world's leading medical technology companies with the most broadly based range of products in orthopaedics and a significant presence in other medical specialties. Stryker works with respected medical professionals to help people lead more active and more satisfying lives and to reduce healthcare costs. The Company's products include implants used in joint replacement, trauma, craniomaxillofacial and spinal surgeries; biologics; surgical, neurologic, ear, nose & throat and interventional pain equipment; endoscopic, surgical navigation, communications and digital imaging systems; as well as patient handling and emergency medical equipment. The Company's website address is http://www.stryker.com

Contact for LISI Emmanuel Viellard Tel: +33 (0)3 84 57 00 77 E-mail: emmanuel.viellard@lisi-group.com Website: www.lisi-group.com