WARSAW, Ind.–(Business Wire)–
Biomet, Inc. announced today financial results for its fourth quarter and fiscal
year ended May 31, 2010. The Company announced preliminary net sales results for
the fiscal fourth quarter and twelve month period in its press release issued
June 28, 2010, which is posted on Biomet`s website at www.biomet.com in the
Investors Section. There have been no changes to the net sales results following
the release of the preliminary net sales results.

* Net sales increased 10% (8% constant currency) worldwide during the fourth
quarter to $703 million
* Fiscal year 2010 net sales increased 8% (7% constant currency) worldwide to
$2.7 billion
* Reported operating income for fiscal year 2010 totaled $357 million compared
to a fiscal year 2009 operating loss of $348 million
* Adjusted operating income increased 7% during fiscal year 2010 to $839 million
* Adjusted EBITDA increased 8% during fiscal year 2010 to $1 billion, or 37.1%
of net sales
* Cash from operations increased 32% to $322 million for fiscal year 2010
* Free cash flow improved to $135 million for fiscal year 2010 from $59 million
for fiscal year 2009

Fourth Quarter Financial Results

Net sales increased 10% to $702.5 million during the fourth quarter of fiscal
year 2010 from $639.3 million during the fourth quarter of fiscal year 2009. On
a constant currency basis, net sales increased 8% during the fourth quarter.

On a reported basis, operating income was $83.3 million during the fourth
quarter of fiscal year 2010 compared to an operating loss of $107.2 million
during the fourth quarter of fiscal year 2009. Excluding special items, which
included a significant litigation charge and impairment charge in the fourth
quarter of fiscal year 2009, adjusted operating income for the fourth quarter
was $215.3 million, or 30.6% of net sales, compared to adjusted operating income
of $204.6 million for the fourth quarter of fiscal year 2009.

The Company reported a net loss of $14.5 million during the fourth quarter of
fiscal year 2010 compared to a net loss of $170.9 million during the fourth
quarter of fiscal year 2009.

Special items (pre-tax) of $132.0 million were recorded during the fourth
quarter of fiscal year 2010 and included $93.5 million of non-cash amortization
and depreciation expense related to the merger. The $38.5 million of non-merger
related special items recorded during the fourth quarter primarily related to
$15.9 million of costs associated with our operational improvement initiatives
and stock compensation expense of $8.1 million.

Excluding special items, adjusted earnings before interest, taxes, depreciation
and amortization (“EBITDA”) during the fourth quarter was $253.6 million, or
36.1% of net sales, compared to adjusted EBITDA of $242.5 million for the fourth
quarter of fiscal year 2009.

Interest expense was $126.8 million during the fourth quarter of fiscal year
2010 compared to $137.7 million during the fourth quarter of fiscal year 2009,
primarily as a result of lower interest rates on floating rate debt.

Free cash flow (operating cash flow minus capital expenditures) for the fourth
quarter of fiscal year 2010 totaled $29.0 million compared to negative free cash
flow of $10.2 million for the fourth quarter of fiscal year 2009. Unlevered free
cash flow (cash flow before debt service) was $219.7 million for the fourth
quarter of fiscal year 2010 compared to $197.3 million for the fourth quarter of
fiscal year 2009.

The Company`s reported net debt balance at May 31, 2010, was $5.707 billion,
including cash on hand of $189 million. From the merger date of September 25,
2007, to the quarter ended May 31, 2010, reported net debt decreased by $446
million due to debt repayments of $199 million, an increase in cash of $116
million, and a $131 million decrease due to favorable foreign currency
translation on the Company`s Euro denominated debt.

At May 31, 2010, the Company`s senior secured leverage ratio was 3.29 times the
last twelve months (“LTM”) adjusted EBITDA (as defined in the Company`s Credit
Agreement dated September 25, 2007), compared to 4.7 times at the merger date.
At the end of fiscal year 2010, the net debt leverage ratio was 5.64 times LTM
adjusted EBITDA compared to 7.7 times at the merger date.

Biomet`s President and Chief Executive Officer Jeffrey R. Binder remarked, “We
made great progress during fiscal 2010. Our consolidated sales growth
accelerated in the fourth quarter, contributing to very healthy sales results
for our full fiscal year. Double-digit sales growth for orthopaedic
reconstructive products continued to drive our top line performance during the
quarter and year, and allowed us to capture additional share gains in this
important market during fiscal 2010. Our sport medicine division also reported
double-digit sales growth for the fourth quarter and full year, while our
International division was able to penetrate key markets outside the United
States with exceptionally strong double-digit sales growth. In addition to our
strong sales results, we ended the year with adjusted EBITDA of $1 billion or
37.1% of net sales, which is a significant milestone for us. I`m proud of the
level of success we`ve achieved in both sales and EBITDA during fiscal 2010.”

Mr. Binder continued, “As we exit each fiscal year, I take time to reflect on
how gratifying it is to lead a business that helps to improve the lives of the
patients who need our products. More than 1,000,000 times a year, we help one
surgeon provide personalized care to one patient. As we enter fiscal 2011, I see
great opportunities for Biomet to continue to fulfill this mission.”

Full Year Financial Results

For the twelve months ended May 31, 2010, net sales increased 8% to $2.698
billion from $2.504 billion during fiscal year 2009. Excluding the effect of
foreign currency, net sales increased 7% during fiscal year 2010.

Reported operating income totaled $356.6 million during fiscal year 2010
compared to an operating loss of $348.3 million during fiscal year 2009.
Excluding special items, which included a significant litigation charge and
impairment charge in fiscal year 2009, adjusted operating income for fiscal year
2010 increased 7% to $838.6 million, or 31.1% of net sales, compared to adjusted
operating income of $781.5 million for fiscal year 2009.

On a reported basis, a net loss of $47.6 million was recorded during fiscal 2010
compared to a net loss of $749.2 million during fiscal year 2009. Excluding
special items, adjusted net income totaled $241.5 million during fiscal year
2010 compared to adjusted net income of $158.1 million during fiscal year 2009.

Special items (pre-tax) totaled $482.0 million during fiscal year 2010 and
included $386.2 million of non-cash amortization and depreciation expense
related to the merger. The $95.8 million of non-merger related special items
primarily related to $43.3 million of costs associated with our operational
improvement initiatives and stock compensation expense of $22.4 million.

Excluding special items, adjusted earnings before interest, taxes, depreciation
and amortization (“EBITDA”) for fiscal year 2010 increased 8% to $1 billion, or
37.1% of net sales, compared to adjusted EBITDA of $926.4 million during fiscal
year 2009.

Interest expense was $516.4 million during fiscal year 2010 compared to $550.3
million during fiscal year 2009, primarily due to lower interest rates on
floating rate debt.

Free cash flow (operating cash flow minus capital expenditures) for fiscal year
ended May 31, 2010 totaled $135.1 million compared to free cash flow of $58.8
million for fiscal year 2009. Unlevered free cash flow (cash flow before debt
service) was $636.7 million for the twelve month period ended May 31, 2010,
compared to $592.1 million for fiscal year 2009.

A reconciliation of reported results to adjusted results is included in this
press release, which is also posted on Biomet`s website: www.biomet.com

Financial Schedule Presentation

The Company`s unaudited condensed consolidated financial statements as of and
for the three and twelve months ended May 31, 2010 and 2009 and other financial
data included in this press release have been prepared in a manner that
complies, in all material respects, with generally accepted accounting
principles in the United States (except with respect to certain non-GAAP
financial measures discussed below) and reflects purchase accounting adjustments
related to the merger referenced below.

About Biomet

Biomet, Inc. and its subsidiaries design, manufacture and market products used
primarily by musculoskeletal medical specialists in both surgical and
non-surgical therapy. Biomet`s product portfolio encompasses reconstructive
products, including orthopedic joint replacement devices, bone cements and
accessories, autologous therapies and dental reconstructive implants; fixation
products, including electrical bone growth stimulators, internal and external
orthopedic fixation devices, craniomaxillofacial implants and bone substitute
materials; spinal products, including spinal stimulation devices, spinal
hardware and orthobiologics; and other products, such as arthroscopy products
and softgoods and bracing products. Headquartered in Warsaw, Indiana, Biomet and
its subsidiaries currently distribute products in approximately 90 countries.

The Merger

Biomet Inc. finalized the merger with LVB Acquisition Merger Sub, Inc., a
wholly-owned subsidiary of LVB Acquisition, Inc., on September 25, 2007, which
we refer to in this press release as the “merger date.” LVB Acquisition, Inc. is
indirectly owned by investment partnerships directly or indirectly advised or
managed by The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts &
Co. and TPG Capital.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended. Those statements are often indicated by the
use of words such as “will,” “intend,” “anticipate,” “estimate,” “expect,”
“plan” and similar expressions. Forward-looking statements involve certain risks
and uncertainties. Actual results may differ materially from those contemplated
by the forward looking statements due to, among others, the following factors:
the success of the Company`s principal product lines; the results of ongoing
investigations by the United States Department of Justice and the United States
Securities and Exchange Commission; the ability to successfully implement new
technologies; the Company`s ability to sustain sales and earnings growth; the
Company`s success in achieving timely approval or clearance of its products with
domestic and foreign regulatory entities; the impact to the business as a result
of compliance with federal, state and foreign governmental regulations and with
the Corporate Integrity Agreement; the impact to the business as a result of the
economic downturn in both foreign and domestic markets; the impact of federal
health care reform; the impact of anticipated changes in the musculoskeletal
industry and the ability of the Company to react to and capitalize on those
changes; the ability of the Company to successfully implement its desired
organizational changes and cost-saving initiatives; the impact to the business
as a result of the Company`s significant international operations, including,
among others, with respect to foreign currency fluctuations and the success of
the Company`s transition of certain manufacturing operations to China; the
impact of the Company`s managerial changes; the ability of the Company`s
customers to receive adequate levels of reimbursement from third-party payors;
the Company`s ability to maintain its existing intellectual property rights and
obtain future intellectual property rights; the impact to the business as a
result of cost containment efforts of group purchasing organizations; the
Company`s ability to retain existing independent sales agents for its products;
and other factors set forth in the Company`s filings with the SEC, including the
Company`s most recent annual report on Form 10-K and quarterly reports on Form
10-Q. Although the Company believes that the assumptions on which the
forward-looking statements contained herein are based are reasonable, any of
those assumptions could prove to be inaccurate given the inherent uncertainties
as to the occurrence or non-occurrence of future events. There can be no
assurance as to the accuracy of forward-looking statements contained in this
press release. The inclusion of a forward-looking statement herein should not be
regarded as a representation by the Company that the Company`s objectives will
be achieved. The Company undertakes no obligation to update publicly or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements which speak only as of the date on which
they were made.

*Non-GAAP Financial Measures:

Management uses non-GAAP financial measures, such as net sales excluding dental
sales and/or the impact of foreign currency (constant currency), operating
income as adjusted, net income as adjusted, free cash flow, unlevered free cash
flow, net debt, Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) and Adjusted EBITDA (as defined by our bank agreement, the method to
calculate this is likely to be different from methods used by other companies)
as important financial measures to review and assess financial and operating
performance of its principal lines of business. Reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP measures are
included elsewhere in this press release.

The term “as adjusted,” a non-GAAP financial measure, refers to financial
performance measures that exclude certain income statement line items, such as
interest, taxes, depreciation or amortization and/or exclude certain expenses as
defined by our bank agreement, such as restructuring charges, non-cash
impairment charges, integration and facilities opening costs or other business
optimization expenses, new systems design and implementation costs, certain
start-up costs and costs related to consolidation of facilities, certain
non-cash charges, advisory fees paid to the private equity owners, certain
severance charges, purchase accounting costs, stock-based compensation and
payments, payments to distributors that are not in the ordinary course of
business, litigation costs, and other related charges.

These non-GAAP measures are not in accordance with, or an alternative for,
generally accepted accounting principles in the United States. Biomet management
believes that these non-GAAP measures provide useful information to investors;
however, this additional non-GAAP financial information is not meant to be
considered in isolation or as a substitute for financial information prepared in
accordance with GAAP.

Biomet, Inc.
Product Net Sales*
Three Month Period Ended May 31, 2010 and May 31, 2009
(in millions, unaudited)

Constant
Three Months Ended Three Months Ended Reported Currency
May 31, 2010 May 31, 2009 Growth % Growth %
Reconstructive $ 525.0 $ 468.2 12 % 10 %
Fixation 62.5 58.5 7 % 6 %
Spine 62.0 61.5 1 % 1 %
Other 53.0 51.1 4 % 2 %
Net Sales $ 702.5 $ 639.3 10 % 8 %

2010 Net
2010 Net 2010 Net Sales Growth in
Sales Growth Currency Sales Growth in Local Currencies
As Reported Impact Local Currencies Impact of Dental Excluding Dental
Reconstructive 12 % (2) % 10 % 2 % 12 %
Hips 10 % (2) % 8 %
Knees 15 % (2) % 13 %
Extremities 35 % (2) % 33 %
Dental 4 % (2) % 2 %
Other 10 % (1) % 9 %
Fixation 7 % (1) % 6 %
Spine 1 % – % 1 %
Other 4 % (2) % 2 %
Total 10 % (2) % 8 % 1 % 9 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Product Net Sales*
Year Ended May 31, 2010 and May 31, 2009
(in millions, unaudited)

Constant
Year Ended Year Ended Reported Currency
May 31, 2010 May 31, 2009 Growth % Growth %
Reconstructive $ 2,024.5 $ 1,851.0 9 % 8 %
Fixation 237.8 234.1 2 % 1 %
Spine 236.2 222.1 6 % 6 %
Other 199.5 196.9 1 % 1 %
Net Sales $ 2,698.0 $ 2,504.1 8 % 7 %

2010 Net
2010 Net 2010 Net Sales Growth in
Sales Growth Currency Sales Growth in Local Currencies
As Reported Impact Local Currencies Impact of Dental Excluding Dental
Reconstructive 9 % (1) % 8 % 2 % 10 %
Hips 7 % (1) % 6 %
Knees 13 % (1) % 12 %
Extremities 29 % (1) % 28 %
Dental (2) % (1) % (3) %
Other 10 % (1) % 9 %
Fixation 2 % (1) % 1 %
Spine 6 % – % 6 %
Other 1 % – % 1 %
Total 8 % (1) % 7 % 1 % 8 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Geographic Segment Net Sales Percentage Summary*
Three Month Period Ended May 31, 2010 and May 31, 2009
(in millions, unaudited)

Constant
Three Months Ended Three Months Ended Reported Currency
May 31, 2010 May 31, 2009 Growth % Growth %
Geographic Segments:
United States $ 423.2 $ 392.0 8 % 8 %
Europe 186.4 179.0 4 % 3 %
International 92.9 68.3 36 % 26 %
Net Sales $ 702.5 $ 639.3 10 % 8 %

2010 Net
2010 Net 2010 Net Sales Growth in
Sales Growth Currency Sales Growth in Impact Local Currencies
As Reported Impact Local Currencies of Dental Excluding Dental
United States 8 % – % 8 % – % 8 %
Europe 4 % (1) % 3 % 1 % 4 %
International 36 % (10) % 26 % 3 % 29 %
Total 10 % (2) % 8 % 1 % 9 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Geographic Segment Net Sales Percentage Summary*
Year Ended May 31, 2010 and May 31, 2009
(in millions, unaudited)

Constant
Year Ended Year Ended Reported Currency
May 31, 2010 May 31, 2009 Growth % Growth %
Geographic Segments:
United States $ 1,644.1 $ 1,527.9 8 % 8 %
Europe 728.8 711.7 2 % 1 %
International 325.1 264.5 23 % 16 %
Net Sales $ 2,698.0 $ 2,504.1 8 % 7 %

2010 Net
2010 Net 2010 Net Sales Growth in
Sales Growth Currency Sales Growth in Impact Local Currencies
As Reported Impact Local Currencies of Dental Excluding Dental
United States 8 % – % 8 % – % 8 %
Europe 2 % (1) % 1 % 3 % 4 %
International 23 % (7) % 16 % 1 % 17 %
Total 8 % (1) % 7 % 1 % 8 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
As Reported Consolidated Statements of Operations
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009

Net sales $ 702.5 $ 639.3
Cost of sales 226.3 265.9
Gross profit 476.2 373.4
Gross profit percentage 67.8 % 58.4 %

Selling, general and administrative expense 272.8 251.4
Research and development expense 29.9 26.6
Amortization 90.2 100.0
Goodwill and intangible assets impairment charge – 102.6
Operating income (loss) 83.3 (107.2 )
Percentage of Sales 11.9 % -16.8 %

Other (income) expense 0.8 (8.5 )
Interest expense 126.8 137.7
Loss before income taxes (44.3 ) (236.4 )

Benefit from income taxes (29.8 ) (65.5 )
Tax rate 67.3 % 27.7 %

Net loss $ (14.5 ) $ (170.9 )
Percentage of Sales -2.1 % -26.7 %

Biomet, Inc.
As Reported Consolidated Statements of Operations
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009

Net sales $ 2,698.0 $ 2,504.1
Cost of sales 819.9 828.4
Gross profit 1,878.1 1,675.7
Gross profit percentage 69.6 % 66.9 %

Selling, general and administrative expense 1,042.3 1,003.6
Research and development expense 106.6 93.5
Amortization 372.6 375.8
Goodwill and intangible assets impairment charge – 551.1
Operating income (loss) 356.6 (348.3 )
Percentage of Sales 13.2 % -13.9 %

Other (income) expense (18.1 ) 21.8
Interest expense 516.4 550.3
Loss before income taxes (141.7 ) (920.4 )

Benefit from income taxes (94.1 ) (171.2 )
Tax rate 66.4 % 18.6 %

Net loss $ (47.6 ) $ (749.2 )
Percentage of Sales -1.8 % -29.9 %

Biomet, Inc.
Other Financial Information
Operating Income (Loss), as reported to Operating Income, as adjusted
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009

Operating income (loss), as reported $ 83.3 $ (107.2 )
Purchase accounting depreciation 4.5 4.5
Purchase accounting amortization 89.0 99.1
Goodwill and intangible assets impairment charge – 102.6
Share-based payment 8.1 7.6
Litigation settlements and reserves and other legal fees 2.6 63.4
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 15.9 11.3
Spine and trauma product rationalization – 20.5
Sponsor fee 2.6 2.5
Greece bad debt expense 9.3 –
Other – 0.3
Operating income, as adjusted* $ 215.3 $ 204.6

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Operating Income (Loss), as reported to Operating Income, as adjusted
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009

Operating income (loss), as reported $ 356.6 $ (348.3 )
Purchase accounting depreciation 17.8 17.9
Purchase accounting amortization 368.4 374.9
Goodwill and intangible assets impairment charge – 551.1
Share-based payment 22.4 33.9
Distributor agreements – 2.0
Litigation settlements and reserves and other legal fees 10.7 82.1
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 43.3 34.8
Spine and trauma product rationalization – 20.5
Sponsor fee 10.1 9.2
Greece bad debt expense 9.3 –
Other – 3.4
Operating income, as adjusted* $ 838.6 $ 781.5

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Net Loss to EBITDA, as reported
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009

Net loss, as reported $ (14.5 ) $ (170.9 )
Depreciation 41.6 41.5
Amortization 90.2 100.0
Interest expense 126.8 137.7
Other (income) expense, net 0.8 (8.5 )
Income taxes (29.8 ) (65.5 )
EBITDA, as reported* $ 215.1 $ 34.3

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Net Loss to EBITDA, as reported
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009

Net loss, as reported $ (47.6 ) $ (749.2 )
Depreciation 175.0 161.9
Amortization 372.6 375.8
Interest expense 516.4 550.3
Other (income) expense, net (18.1 ) 21.8
Income taxes (94.1 ) (171.2 )
EBITDA, as reported* $ 904.2 $ 189.4

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
EBITDA, as reported to EBITDA, as adjusted
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009

Operating income (loss), as reported $ 83.3 $ (107.2 )
Depreciation 41.6 41.5
Amortization 90.2 100.0
EBITDA, as reported $ 215.1 $ 34.3

Special items and purchase accounting adjustments:
Goodwill and intangible assets impairment charge – 102.6
Share-based payment 8.1 7.6
Litigation settlements and reserves and other legal fees 2.6 63.4
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 15.9 11.3
Spine and trauma product rationalization – 20.5
Sponsor fee 2.6 2.5
Greece bad debt expense 9.3 –
Other – 0.3
EBITDA, as adjusted* $ 253.6 $ 242.5

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
EBITDA, as reported to EBITDA, as adjusted
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009

Operating income (loss), as reported $ 356.6 $ (348.3 )
Depreciation 175.0 161.9
Amortization 372.6 375.8
EBITDA, as reported $ 904.2 $ 189.4

Special items and purchase accounting adjustments:
Goodwill and intangible assets impairment charge – 551.1
Share-based payment 22.4 33.9
Distributor Agreements – 2.0
Litigation settlements and reserves and other legal fees 10.7 82.1
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 43.3 34.8
Spine and trauma product rationalization – 20.5
Sponsor fee 10.1 9.2
Greece bad debt expense 9.3 –
Other – 3.4
EBITDA, as adjusted* $ 1,000.0 $ 926.4

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Reconciliation of GAAP Consolidated Net Loss to
Non-GAAP Adjusted Consolidated Net Income
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009
Net loss, as reported $ (14.5 ) $ (170.9 )
Purchase accounting depreciation 4.5 4.5
Purchase accounting amortization 89.0 99.1
Goodwill and intangible assets impairment charge – 102.6
Share-based payment 8.1 7.6
Litigation settlements and reserves and other legal fees 2.6 63.4
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 15.9 11.3
Spine and trauma product rationalization – 20.5
Sponsor fee 2.6 2.5
Greece bad debt expense 9.3 –
Other – 0.3
Tax effect on special and purchase accounting items (67.3 ) (74.6 )
Net income, as adjusted* $ 50.2 $ 66.3

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Reconciliation of GAAP Consolidated Net Loss to
Non-GAAP Adjusted Consolidated Net Income
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009
Net loss, as reported $ (47.6 ) $ (749.2 )
Purchase accounting depreciation 17.8 17.9
Purchase accounting amortization 368.4 374.9
Goodwill and intangible assets impairment charge – 551.1
Share-based payment 22.4 33.9
Distributor agreements – 2.0
Litigation settlements and reserves and other legal fees 10.7 82.1
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 43.3 34.8
Spine and trauma product rationalization – 20.5
Sponsor fee 10.1 9.2
Greece bad debt expense 9.3 –
Other – 3.4
Tax effect on special and purchase accounting items (192.9 ) (222.5 )
Net income, as adjusted* $ 241.5 $ 158.1

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Senior Secured Leverage Ratio
(in millions, unaudited)

May 31, 2010
Senior Secured Debt:

USD Term Loan B $ 2,281.5
EUR Term Loan B 1,047.3
Asset Based Revolver –
Cash Flow Revolvers –
Consolidated Senior Secured Debt 3,328.8 A

Senior Notes 2,561.4
European Operations 6.3
Consolidated Total Debt 5,896.5 C
Cash (189.1)
Net Debt * $ 5,707.4 D

LTM EBITDA: *

Quarter 1 Fiscal 2010 EBITDA 230.3
Quarter 2 Fiscal 2010 EBITDA 265.4
Quarter 3 Fiscal 2010 EBITDA 250.7
Quarter 4 Fiscal 2010 EBITDA 253.6
“Run Rate” Cost Savings** 12.6

LTM EBITDA $ 1,012.6 B

Senior Secured Leverage Ratio 3.29 A / B
Total Leverage Ratio 5.82 C / B
Total Leverage Ratio (Net Debt) 5.64 D / B
Excluding Cost Savings 5.71

* See Non-GAAP Financial Measures Disclosure Above

** As defined by the Credit Agreement dated September 25, 2007

Biomet, Inc.
Balance Sheets
(in millions, unaudited)

(Preliminary)
May 31, 2010 May 31, 2009

Assets
Cash and cash equivalents $ 189.1 $ 215.6
Accounts receivable, net 452.5 (b) 511.1
Income tax receivable 19.2 20.0
Inventories 507.3 523.9
Current deferred income taxes 55.6 78.4
Prepaid expenses and other 55.0 39.1
Property, plant and equipment, net 622.0 636.1
Intangible assets, net 5,190.3 5,680.0
Goodwill 4,707.5 4,780.5
Other assets 144.3 (b) 116.2
Total Assets $ 11,942.8 $ 12,600.9

Liabilities and Shareholder’s Equity
Current liabilities $ 465.3 $ 550.0
Current portion of long-term debt 35.6 81.2
Long-term debt, net of current portion 5,860.9 6,131.5
Deferred income taxes, long-term 1,666.3 1,816.3
Other long-term liabilities 181.2 181.6
Shareholder’s equity 3,733.5 3,840.3
Total Liabilities and Shareholder’s Equity $ 11,942.8 $ 12,600.9

Net Debt (a)* $ 5,707.4 $ 5,997.1

(a) Net debt is the sum of total debt less cash and cash equivalents and short-term investments.

(b) $38m of Greece net accounts receivables were reclassed to other assets as management doesn’t currently expect them to be settled within twelve months.

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Consolidated Statements of Cash Flows
(in millions, unaudited)

Fiscal 2010
(Preliminary) (Preliminary)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
August 31, 2009 November 30, 2009 February 28, 2010 May 31, 2010 May 31, 2010
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net loss $ (22.8 ) $ (7.2 ) $ (3.1 ) $ (14.5 ) $ (47.6 )
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization 136.6 143.0 136.2 131.8 547.6
Amortization of deferred financing costs 2.8 2.8 2.9 2.8 11.3
Stock based compensation expense 5.2 4.3 4.8 8.1 22.4
Provision (recovery) for doubtful accounts receivable (5.2 ) (0.6 ) (4.0 ) 2.8 (7.0 )
Gain on sale of investments, net (0.8 ) (0.4 ) (1.8 ) (1.3 ) (4.3 )
Provision (recovery) for inventory obsolescence 6.5 2.3 (5.0 ) (5.9 ) (2.1 )
Deferred income taxes (47.1 ) (30.7 ) (26.8 ) (15.4 ) (120.0 )
Other (1.1 ) 6.2 4.0 1.4 10.5
Changes in operating assets and liabilities:
Accounts receivable 19.8 (47.5 ) 13.9 8.2 (5.6 )
Inventories (22.5 ) (9.4 ) (4.0 ) 8.6 (27.3 )
Prepaid expenses (4.4 ) (1.8 ) (1.2 ) 13.7 6.3
Accounts payable (3.0 ) (6.1 ) (12.0 ) 11.6 (9.5 )
Income taxes 14.6 8.3 (3.3 ) (10.7 ) 8.9
Accrued interest 70.0 (70.6 ) 64.9 (67.2 ) (2.9 )
Other (93.1 ) 33.0 6.4 (5.5 ) (59.2 )
Net cash provided by operating activities 55.5 25.6 171.9 68.5 321.5

CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sales of investments 3.4 2.9 9.8 8.8 24.9
Purchases of investments (1.8 ) (2.0 ) (9.5 ) – (13.3 )
Net proceeds from sale of property and equipment – – 0.5 2.5 3.0
Capital expenditures (53.9 ) (52.1 ) (40.9 ) (39.5 ) (186.4 )
Acquisitions, net of cash acquired (2.4 ) (6.6 ) (0.8 ) (0.4 ) (10.2 )
Net cash used in investing activities (54.7 ) (57.8 ) (40.9 ) (28.6 ) (182.0 )

CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Debt:
Proceeds under revolving credit agreements 20.1 – 0.2 0.1 20.4
Payments under revolving credit agreements (1.3 ) (66.7 ) (0.4 ) (0.5 ) (68.9 )
Payments under senior secured credit facility (8.9 ) (9.0 ) (9.1 ) (8.8 ) (35.8 )
Payments under asset-based revolver – – (65.2 ) – (65.2 )
Repurchases of senior notes – – (8.7 ) – (8.7 )
Equity:
Repurchase of LVB Acquisition, Inc. shares (0.6 ) (0.5 ) (0.4 ) (0.2 ) (1.7 )
Net cash provided by (used in) financing activities 9.3 (76.2 ) (83.6 ) (9.4 ) (159.9 )
Effect of exchange rate changes on cash 0.7 (0.4 ) 2.4 (8.8 ) (6.1 )
Increase (decrease) in cash and cash equivalents 10.8 (108.8 ) 49.8 21.7 (26.5 )
Cash and cash equivalents, beginning of period 215.6 226.4 117.6 167.4 215.6
Cash and cash equivalents, end of period $ 226.4 $ 117.6 $ 167.4 $ 189.1 $ 189.1

Biomet, Inc.
Consolidated Statements of Cash Flows
(in millions, unaudited)

Fiscal 2009

Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
August 31, 2008 November 30, 2008 February 28, 2009 May 31, 2009 May 31, 2009
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net loss $ (59.9 ) $ (39.7 ) $ (478.7 ) $ (170.9 ) $ (749.2 )
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization 131.4 130.0 134.8 141.5 537.7
Amortization of deferred financing costs 2.8 2.9 2.8 2.8 11.3
Goodwill and intangible assets impairment charge – – 448.5 102.6 551.1
Stock based compensation expense 7.2 11.6 7.5 7.6 33.9
Provision (recovery) for doubtful accounts receivable 5.9 (9.4 ) (3.9 ) (3.1 ) (10.5 )
Loss and impairment on investments, net 2.9 3.6 7.1 1.0 14.6
Provision (recovery) for inventory obsolescence 8.2 (7.8 ) 0.5 9.0 9.9
Deferred income taxes (31.6 ) (38.1 ) (76.3 ) (78.7 ) (224.7 )
Other 0.7 (0.8 ) 4.0 0.1 4.0
Changes in operating assets and liabilities:
Accounts receivable (1.4 ) (39.1 ) (4.1 ) 5.8 (38.8 )
Inventories (26.6 ) 1.1 2.8 (5.2 ) (27.9 )
Prepaid expenses 6.0 (8.6 ) 3.7 2.0 3.1
Accounts payable (17.7 ) 11.0 (0.2 ) 26.5 19.6
Income taxes (8.2 ) 2.5 58.1 (13.0 ) 39.4
Accrued interest 68.8 (69.6 ) 60.1 (67.1 ) (7.8 )
Other (22.6 ) 32.1 (17.9 ) 86.5 78.1
Net cash provided by (used in) operating activities 65.9 (18.3 ) 148.8 47.4 243.8

CASH FLOWS USED IN INVESTING ACTIVITIES:
Net proceeds from sale and purchase of investments – – – 3.1 3.1
Capital expenditures (41.0 ) (51.9 ) (34.5 ) (57.6 ) (185.0 )
Acquisitions, net of cash acquired (2.0 ) (0.2 ) (7.3 ) (3.5 ) (13.0 )
Net cash used in investing activities (43.0 ) (52.1 ) (41.8 ) (58.0 ) (194.9 )

CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Debt:
Proceeds under revolving credit agreements 3.2 22.1 20.3 168.0 213.6
Payments under revolving credit agreements – (16.8 ) (6.7 ) (114.7 ) (138.2 )
Payments under senior secured credit facility (9.3 ) (8.9 ) (8.7 ) (8.8 ) (35.7 )
Proceeds (payments) under asset-based revolver – 165.4 – (165.4 ) –
Equity:
Capital Contributions 0.2 1.7 1.8 – 3.7
Repurchase of LVB Acquisition, Inc. shares (0.2 ) (0.4 ) (0.1 ) (0.2 ) (0.9 )
Net cash provided by (used in) financing activities (6.1 ) 163.1 6.6 (121.1 ) 42.5
Effect of exchange rate changes on cash (1.0 ) (6.8 ) (3.6 ) 8.0 (3.4 )
Increase (decrease) in cash and cash equivalents 15.8 85.9 110.0 (123.7 ) 88.0
Cash and cash equivalents, beginning of period 127.6 143.4 229.3 339.3 127.6
Cash and cash equivalents, end of period $ 143.4 $ 229.3 $ 339.3 $ 215.6 $ 215.6

Biomet, Inc.
Other Financial Information
GAAP Operating Cash Flow Reconciled to Free Cash Flow & Unlevered Free Cash Flow
(in millions, unaudited)

Fiscal 2010
(Preliminary) (Preliminary)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
August 31, 2009 November 30, 2009 February 28, 2010 May 31, 2010 May 31, 2010
Net loss $ (22.8 ) $ (7.2 ) $ (3.1 ) $ (14.5 ) $ (47.6 )
Adjustments:
Depreciation and amortization 136.6 143.0 136.2 131.8 547.6
Amortization of deferred financing costs 2.8 2.8 2.9 2.8 11.3
Stock based compensation expense 5.2 4.3 4.8 8.1 22.4
Provision (recovery) for doubtful accounts receivable (5.2 ) (0.6 ) (4.0 ) 2.8 (7.0 )
Gain on sale of investments, net (0.8 ) (0.4 ) (1.8 ) (1.3 ) (4.3 )
Provision (recovery) for inventory obsolescence 6.5 2.3 (5.0 ) (5.9 ) (2.1 )
Deferred income taxes (47.1 ) (30.7 ) (26.8 ) (15.4 ) (120.0 )
Other (1.1 ) 6.2 4.0 1.4 10.5
TOTAL 74.1 119.7 107.2 109.8 410.8

Changes In:
Accounts receivables 19.8 (47.5 ) 13.9 8.2 (5.6 )
Inventories (22.5 ) (9.4 ) (4.0 ) 8.6 (27.3 )
Prepaid expenses (4.4 ) (1.8 ) (1.2 ) 13.7 6.3
Accounts payable (3.0 ) (6.1 ) (12.0 ) 11.6 (9.5 )
Income taxes 14.6 8.3 (3.3 ) (10.7 ) 8.9
Accrued Interest 70.0 (70.6 ) 64.9 (67.2 ) (2.9 )
Other (93.1 ) 33.0 6.4 (6 ) (59.2 )
Net cash provided by operating activities $ 55.5 $ 25.6 $ 171.9 $ 68.5 $ 321.5

Capital expenditures (53.9 ) (52.1 ) (40.9 ) (39.5 ) (186.4 )

Free Cash Flow $ 1.6 $ (26.5 ) $ 131.0 $ 29.0 $ 135.1

Acquisitions, net of cash acquired (2.4 ) (6.6 ) (0.8 ) (0.4 ) (10.2 )
Proceeds from sales of investments 3.4 2.9 9.8 8.8 24.9
Purchases of investments (1.8 ) (2.0 ) (9.5 ) – (13.3 )
Loss on bond repurchase – – (0.7 ) – (0.7 )
Proceeds from sale of property and equipment – – 0.5 2.5 3.0
Repurchase of LVB Acquisition, Inc. shares (0.6 ) (0.5 ) (0.4 ) (0.2 ) (1.7 )
Add back: cash paid for interest 58.9 198.2 59.8 188.8 505.7
Effect of exchange rates on cash 0.7 (0.4 ) 2.4 (8.8 ) (6.1 )
Unlevered Free Cash Flow (1) $ 59.8 $ 165.1 $ 192.1 $ 219.7 $ 636.7

(1) Free cash flow (FCF) that does not take into account the interest payments required on outstanding debt. Commonly used by companies that are highly leveraged to show how assets perform before interest.

Biomet, Inc.
Other Financial Information
GAAP Operating Cash Flow Reconciled to Free Cash Flow & Unlevered Free Cash Flow
(in millions, unaudited)

Fiscal 2009

Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
August 31, 2008 November 30, 2008 February 28, 2009 May 31, 2009 May 31, 2009
Net loss $ (59.9 ) $ (39.7 ) $ (478.7 ) $ (170.9 ) $ (749.2 )
Adjustments:
Depreciation and amortization 131.4 130.0 134.8 141.5 537.7
Amortization of deferred financing costs 2.8 2.9 2.8 2.8 11.3
Goodwill and intangible assets impairment charge – – 448.5 102.6 551.1
Stock based compensation expense 7.2 11.6 7.5 7.6 33.9
Provision (recovery) for doubtful accounts receivable 5.9 (9.4 ) (3.9 ) (3.1 ) (10.5 )
Loss and impairment on investments, net 2.9 3.6 7.1 1.0 14.6
Provision (recovery) for inventory obsolescence 8.2 (7.8 ) 0.5 9.0 9.9
Deferred income taxes (31.6 ) (38.1 ) (76.3 ) (78.7 ) (224.7 )
Other 0.7 (0.8 ) 4.0 0.1 4.0
TOTAL 67.6 52.3 46.3 11.9 178.1

Changes In:
Accounts receivables (1.4 ) (39.1 ) (4.1 ) 5.8 (38.8 )
Inventories (26.6 ) 1.1 2.8 (5.2 ) (27.9 )
Prepaid expenses 6.0 (8.6 ) 3.7 2.0 3.1
Accounts payable (17.7 ) 11.0 (0.2 ) 26.5 19.6
Income taxes (8.2 ) 2.5 58.1 (13.0 ) 39.4
Accrued Interest 68.8 (69.6 ) 60.1 (67.1 ) (7.8 )
Other (22.6 ) 32.1 (17.9 ) 86.5 78.1
Net cash provided by (used in) operating activities $ 65.9 $ (18.3 ) $ 148.8 $ 47.4 $ 243.8

Capital expenditures (41.0 ) (51.9 ) (34.5 ) (57.6 ) (185.0 )

Free Cash Flow $ 24.9 $ (70.2 ) $ 114.3 $ (10.2 ) $ 58.8

Acquisitions, net of cash acquired (2.0 ) (0.2 ) (7.3 ) (3.5 ) (13.0 )
Proceeds from sale and maturities of investments – – – 3.1 3.1
Capital contributions 0.2 1.7 1.8 – 3.7
Repurchase of LVB Acquisition, Inc. shares (0.2 ) (0.4 ) (0.1 ) (0.2 ) (0.9 )
Add back: cash paid for interest 69.1 274.6 66.6 200.1 543.8
Effect of exchange rates on cash (1.0 ) (6.8 ) (3.6 ) 8.0 (3.4 )
Unlevered Free Cash Flow (1) $ 91.0 $ 198.7 $ 171.7 $ 197.3 $ 592.1

(1) Free cash flow (FCF) that does not take into account the interest payments required on outstanding debt. Commonly used by companies that are highly leveraged to show how assets perform before interest.

Biomet, Inc.
Other Financial Information
Gross Profit, as reported to Gross Profit, as adjusted
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009
Gross profit, as reported $ 476.2 $ 373.4
Purchase accounting depreciation 4.5 4.5
Share-based payment 0.5 0.6
Litigation settlements and reserves and other legal fees (0.1) 58.2
Operational restructuring 1.4 1.4
Consulting expenses related to operational improvement initiatives, and other related costs 12.2 3.4
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 13.6 4.8
Spine and trauma product rationalization – 20.5
Gross profit, as adjusted* $ 494.7 $ 462.0

Net sales $ 702.5 $ 639.3
Gross profit percentage, as reported 67.8 % 58.4 %
Gross profit percentage, as adjusted* 70.4 % 72.3 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Gross Profit, as reported to Gross Profit, as adjusted
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009
Gross profit, as reported $ 1,878.1 $ 1,675.7
Purchase accounting depreciation 17.8 17.9
Share-based payment 1.7 2.7
Litigation settlements and reserves and other legal fees (7.0) 64.2
Operational restructuring 12.2 2.6
Consulting expenses related to operational improvement initiatives, and other related costs 19.9 9.3
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, abnormal manufacturing variances and other related costs) 32.1 11.9
Spine and trauma product rationalization – 20.5
Gross profit, as adjusted* $ 1,922.7 $ 1,792.9

Net sales $ 2,698.0 $ 2,504.1
Gross profit percentage, as reported 69.6 % 66.9 %
Gross profit percentage, as adjusted* 71.3 % 71.6 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Selling, General and Administrative Expense, as reported to Selling, General and Administrative Expense, as adjusted
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009
Selling, general and administrative expense, as reported $ 272.8 $ 251.4
Share-based payment (7.0) (6.1)
Litigation settlements and reserves and other legal fees (2.7) (3.9)
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, and other related costs) (2.3) (7.6)
Sponsor fee (2.6) (2.5)
Greece bad debt expense (9.3) –
Other – –
Selling, general and administrative expense, as adjusted* $ 248.9 $ 231.3

Net sales $ 702.5 $ 639.3
SG&A as a percent of sales, as reported 38.8 % 39.3 %
SG&A as a percent of sales, as adjusted* 35.4 % 36.2 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Selling, General and Administrative Expense, as reported to Selling, General and Administrative Expense, as adjusted
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009
Selling, general and administrative expense, as reported $ 1,042.3 $ 1,003.6
Share-based payment (18.3) (27.2)
Distributor agreements – (2.0)
Litigation settlements and reserves and other legal fees (18.8) (17.5)
Operational restructuring and consulting expenses related to operational initiatives (severance, building impairments, and other related costs) (10.9) (23.0)
Sponsor fee (10.1) (9.2)
Greece bad debt expense (9.3) –
Other – (4.1)
Selling, general and administrative expense, as adjusted* $ 974.9 $ 920.6

Net sales $ 2,698.0 $ 2,504.1
SG&A as a percent of sales, as reported 38.6 % 40.1 %
SG&A as a percent of sales, as adjusted* 36.1 % 36.8 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Research and Development Expense, as reported to Research and Development Expense, as adjusted
(in millions, unaudited)

Three Months Ended Three Months Ended
May 31, 2010 May 31, 2009
Research and development expense, as reported $ 29.9 $ 26.6
Share-based payment (0.6) (0.9)
Litigation settlements and reserves and other legal fees – 0.2
Operational restructuring and consulting expenses related to operational initiatives (severance, and other related costs) – (0.7)
Research and development expense, as adjusted* $ 29.3 $ 25.2

Net sales $ 702.5 $ 639.3
R&D as a percent of sales, as reported 4.3 % 4.2 %
R&D as a percent of sales, as adjusted* 4.2 % 3.9 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Other Financial Information
Research and Development Expense, as reported to Research and Development Expense, as adjusted
(in millions, unaudited)

Year Ended Year Ended
May 31, 2010 May 31, 2009
Research and development expense, as reported $ 106.6 $ 93.5
Share-based payment (2.4) (4.0)
Litigation settlements and reserves and other legal fees 1.1 1.1
Operational restructuring and consulting expenses related to operational initiatives (severance, and other related costs) (0.3) (0.7)
Research and development expense, as adjusted* $ 105.0 $ 89.9

Net sales $ 2,698.0 $ 2,504.1
R&D as a percent of sales, as reported 4.0 % 3.7 %
R&D as a percent of sales, as adjusted* 3.9 % 3.6 %

* See Non-GAAP Financial Measures Disclosure Above

Biomet, Inc.
Daniel P. Florin, 574-372-1687
Senior Vice President and Chief Financial Officer
or
Barbara Goslee, 574-372-1514
Director, Corporate Communications

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