Smith & Nephew Orthopaedics Announces End of Deferred Prosecution Agreement and Dismissal of Complaint by US Attorney's Office

MEMPHIS, Tenn., March 30  /PRNewswire-FirstCall/ -- Smith & Nephew's (NYSE: SNN)(LSE:SN) Orthopaedics division announces today the expiration of its Deferred Prosecution Agreement (DPA) with the United States Attorney's Office (USAO) for the district of New Jersey. The 18-month agreement was one of five similar agreements entered into on September 27, 2007, between the USAO and the five largest companies that manufacture and sell hip and knee replacement implants. Additionally, the USAO has dismissed the complaint it filed in connection with the DPA.

During the term of the DPA, Smith & Nephew Orthopaedics operated under the oversight of a USAO-appointed monitor and worked to improve the ways in which it manages its relationships with healthcare providers.

Smith & Nephew will continue its compliance with the Corporate Integrity Agreement signed with the Department of Health and Human Services, which has run concurrently with the DPA and will remain in effect until September 2012. Similar agreements were signed by most of the other DPA companies.

"We are pleased to have successfully collaborated with the USAO and our monitor during these last 18 months to create a more robust compliance program," said Joseph DeVivo, president of Smith & Nephew Orthopaedics. "Our substantial investment in and commitment to this program will help us continue our work as the leading innovator in orthopaedic technology for active, informed patients."

About Smith & Nephew

Smith & Nephew is a global medical technology business, specialising in Orthopaedics, including Reconstruction, Trauma and Clinical Therapies; Endoscopy and Advanced Wound Management.  Smith & Nephew is a global leader in arthroscopy and advanced wound management and is one of the leading global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives.  The Company prides itself on the strength of its relationships with its surgeons and professional healthcare customers, with whom its name is synonymous with high standards of performance, innovation and trust.  The Company operates in 32 countries around the world.  Annual sales in 2008 were $3.8 billion.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995.  In particular, statements regarding planned growth in our business and in our trading margins discussed under "Outlook" are forward-looking statements as are discussions of our product pipeline.  These statements, as well as the phrases "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions, are generally intended to identify forward-looking statements.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof.  All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing.  Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 

DATASOURCE: Smith & Nephew



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