Merck KGaA to Exit Orthopedics Joint Venture to Focus on Core Businesses DARMSTADT, Germany, December 18 /PRNewswire/ -- Merck KGaA announced today that it will sell its 50 percent stake in the European orthopedics joint venture BioMer C.V. for USD 300 million to its partner, Biomet Inc. of Warsaw, Indiana. Sale of the stake in the joint venture is expected to be completed in the first quarter of next year and will result in exceptional income in 2004 for Merck of about USD 70 million. Finalization of the sale is subject to clearance by European antitrust authorities. Established in January 1998 in Dordrecht, Netherlands, BioMer C.V. is the holding company of Biomet-Merck, the joint European orthopedics business of Biomet Inc. and Merck. The joint venture is represented in 17 European countries and has 1,574 employees. In the fiscal year ended April 30, 2003, Biomet-Merck achieved sales of USD 313 million. "In more than five years of successful collaboration, Biomet has always been a professional and competent partner," said Prof. Bernhard Scheuble, Chairman of the Executive Board of Merck KGaA. "We finally accepted this offer as an opportunity to move forward with our goal to focus on our own core businesses." As a 50-50 joint venture, Merck did not consolidate the sales of Biomet-Merck and was not involved in the day-to-day management of the business. For this reason, Merck does not expect any changes for customers and employees when Biomet Inc. assumes full ownership of the European business. Note to editors: Further information on the Biomet-Merck joint venture is available on the Internet at: http://www.biometmerck.com Biomet Inc. (Internet: http://www.biomet.com) and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy, including reconstructive and fixation devices, electrical bone growth stimulators, orthopedic support devices, operating room supplies, general surgical instruments, arthroscopy products, spinal implants, bone cements and accessories, bone substitute materials, craniomaxillofacial implants and dental reconstructive implants and associated instrumentation. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries. With more than 34,500 employees in 53 countries, the Merck Group generated sales of EUR 7.5 billion in 2002. Founded in 1668 in Darmstadt, Germany, the company aims to be a world leader within its core businesses of pharmaceuticals and chemicals. The Merck Group strongly believes the key to its long-term business success is innovative products created by entrepreneurial and talented employees. Merck groups its operating activities under Merck KGaA, in which the Merck family holds 74% and the remaining 26% is publicly traded. The former U.S. subsidiary, Merck & Co., has been a completely independent company since 1917. DATASOURCE: Merck KGaA Contact: Hartmut Vennen, Phone +49 (0) 61 51/72-23 86, for further information about Biomet Inc. contact: Greg W. Sasso, Vice President, Corporate Development and Communications at +1 (574) 372-1528 or Barbara Goslee, Manager, Corporate Communications at +1 (574) 372-1514. All Merck Press Releases are distributed by e-mail at the same time they become available on the Merck Website. Please go to http://www.subscribe.merck.de to register online, change your selection or discontinue this service. In case of questions, please contact the Media Hotline at: +49 (0)6151 72 5000.

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