Encore Medical Acquires Cefar AB of Sweden

AUSTIN, Texas, Nov. 8  /PRNewswire-FirstCall/ -- Encore Medical Corporation announced today that it has acquired Cefar AB, a leading European provider of electrotherapy and rehabilitation devices. Encore plans to merge its European electrotherapy subsidiary, Compex SA, with Cefar, creating the largest electrotherapy company in the world outside of the United States. The transaction became effective on November 7, 2006. Terms were not disclosed.

Ken Davidson, the chief executive officer of Encore Medical said, "Cefar is an excellent strategic addition to our electrotherapy business. They bring a great capacity for medical innovation and market expansion, and an outstanding European management team. We are delighted to be joining forces with Cefar in Europe, and look forward to what we can do with the combination of Cefar and Compex SA."

Encore is a diversified medical-device company, focused on rehabilitation, pain management, physical therapy and orthopedics. Encore manufactures and sells market-leading rehabilitation and orthopedic implant products under the Chattanooga(R), Empi(R), Encore(R) Surgical Implant, Ormed and Compex(R) brands. Encore's European electrotherapy subsidiary, Compex SA, is a leading European competitor in electrotherapy for medical and consumer (sports and fitness) applications, and is headquartered in Lausanne, Switzerland. Encore itself was recently acquired by The Blackstone Group, a leading private-equity firm.

Cefar AB, based in Malmo, Sweden, is a leading competitor and innovator in medical electrotherapy. Cefar markets electrotherapy devices indicated for chronic pain, for women's health (labor pain, incontinence, dysmenorrhea), for electroacupuncture, and for other rehabilitation activities.

Mats Dorring, the Deputy Chairman and principal shareholder of Cefar said, "Merging these two companies gives us excellent position in both the medical and consumer electrotherapy markets across Europe. We are particularly looking forward to working with the other companies in the Encore group, to sharing technologies and market opportunities, and to driving the rapid clinical development of this therapeutic class."

The combined company will be led by Bjorn Lenander, who is currently the chief executive officer of Cefar AB. Mr. Lenander commented, "By joining Cefar and Compex together, we are convinced that we can develop the electro stimulation market faster and better than ever before."

Encore's strategy for the merged company is to develop both the professional/medical and consumer markets for electro stimulation across Europe and internationally, continuing to trade under both the Cefar and Compex brands.

  Contact:  Harry L. Zimmerman, Executive Vice President -- General Counsel
            512-832-9500
            

DATASOURCE: Encore Medical Corporation



CONTACT:  Harry L. Zimmerman, Executive Vice President -- General Counsel

of Encore Medical Corporation, [phone], or





Web site:  http://www.encoremed.com/ 

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