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Fact Book

2006-2007

Investor RelationsKatherine A. OwenVice President, Strategyand Investor Relations

Public & Media RelationsJ. Patrick AndersonVice President, Corporate Affairs

2825 Airview BoulevardKalamazoo, MI 49002t: 269 385 2600

Fact Book 2006-2007

Table of Contents

Stryker Overview

Company Leadership ................................................................................................................................................................2

Summary of Results Years Ending December 31 ....................................................................................................................3

Net Sales as Reported ...............................................................................................................................................................4

Net Earnings as Reported .........................................................................................................................................................5

Adjusted Net Earnings from Continuing Operations ............................................................................................................6

Diluted Net Earnings per Share as Reported ..........................................................................................................................7

Adjusted Diluted Net Earnings per Share from Continuing Operations ..............................................................................8

2006 Product Portfolio Sales ....................................................................................................................................................9

2006 Orthopaedic Implant Product Sales .............................................................................................................................10

2006 MedSurg Product Sales..................................................................................................................................................11

2006 Sales by Geography ........................................................................................................................................................12

Market Overview

Medical Technology Market Overview

Worldwide Market ..................................................................................................................................................................14

Orthopaedic Market Overview

Worldwide Market by Company ...........................................................................................................................................15

Worldwide Market by Product ..............................................................................................................................................16

Worldwide Market by Geography .........................................................................................................................................17

Orthopaedic Implant Overview

Worldwide Reconstructive Market ........................................................................................................................................18

Worldwide Spine Devices Market ..........................................................................................................................................19

Worldwide Trauma & Craniomaxillofacial Market ..............................................................................................................20

Worldwide Orthobiologics Market ........................................................................................................................................21

MedSurg Equipment Overview

Worldwide O.R. Equipment Market ......................................................................................................................................22

Worldwide Endoscopy Market ...............................................................................................................................................23

North American Patient Handling Market ...........................................................................................................................24

1 Fact Book 2006-2007

Stryker Overview

Company Leadership

2 Fact Book 2006-2007

John W. Brown Chairman

Stephen P. MacMillan President and Chief Executive Officer

J. Patrick Anderson Vice President, Corporate Affairs

Dean H. Bergy Vice President and Chief Financial Officer

Patrick J. Beyer President, EMEA

Lonny Carpenter Vice President and General Manager, Medical

Luciano Cattani Vice President, Group President, International

William R. Enquist President, Global Endoscopy

Andrew Fox-Smith President, Pacific

Curtis E. Hall, Esq. Vice President and General Counsel

Curt R. Hartman President, Global Instruments

Stephen Si Johnson Vice President, Group President, MedSurg

James E. Kemler Vice President, Group President, Biotech, Spine, Osteosynthesis and Development

Ronald L. Lancaster Vice President, Development

J. Ronald Lawson Executive Vice President

Edward B. Lipes Executive Vice President

Lee D. Lovely Vice President and General Manager, Canada and Latin America

Eric Lum Vice President, Tax

Vivian Masson President, Osteosynthesis

Michael P. Mogul President, Orthopaedics

Yoshiaki Nakazawa President, Japan

Katherine A. Owen Vice President, Strategy and Investor Relations

Mark A. Philip, Ph.D. President, Biotech

James B. Praeger Controller

Michael W. Rude Vice President, Human Resources

Timothy J. Scannell President, Spine

David J. Simpson Executive Vice President

Elizabeth A. Staub Vice President, Regulatory Affairs and Quality Assurance

Bronwen R. Taylor Chief Compliance Officer

Thomas R. Winkel Vice President and Secretary

Jeffrey R. Winter Vice President, Internal Audit

Bryant S. Zanko Vice President, Business Development

2006 2005 % Change

Net Sales $5,147 $4,609 12%

Adjusted Net Earnings from Continuing Operations1 824 676 22%

Adjusted Diluted Net Earnings per Share from Continuing Operations2 2.00 1.65 21%

Adjusted Return on Sales 16% 15%

Adjusted Return on Average Equity 22% 22%

Stryker Overview Summary of Results Years Ending December 31

$ in millions (except per share amounts)

1. See page 6 for the reconciliation to adjusted net earnings from continuing operations

2. See page 8 for the reconciliation to adjusted diluted net earnings per share from continuing operations

Adjusted Results

3 Fact Book 2006-2007

2006 2005 % Change

Net Sales $5,147 $4,609 12%

Net Earnings 778 644 21%

Diluted Net Earnings per Share 1.89 1.57 20%

Dividends per Share 0.22 0.11 100%

As Reported

Stryker Overview Net Sales as Reported*

* All sales after December 4, 1998 include Howmedica

4 Fact Book 2006-2007

880 987

1,9822,142

2,421

2,810

3,402

4,017

4,609

5,147

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4,400

4,800

5,200

5,600

$ Millions

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

6% 12% 101% 8% 13% 16% 21% 18% 15% 12%AnnualGrowth Rate

$ Millions

19% (53)% (76)% N.M. 21% 29% 32% 1% 46% 21%AnnualGrowth Rate

124

58*

14*

211

255

329

440

644

778

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

850

434

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Stryker Overview Net Earnings as Reported*

* 1998 and 1999 include Howmedica acquisition-related costs and charges N.M. = Not Meaningful

5 Fact Book 2006-2007

119 134162

210

257

325

419

559

676

824

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

850

900

$ Millions

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

13%33% 21% 29% 22% 26% 29% 33% 21% 22%AnnualGrowth Rate

Stryker Overview Adjusted Net Earnings from Continuing Operations*

* ReCONCIlIAtION tO ADJuSteD Net eARNINgS FROM CONtINuINg OPeRAtIONS (Millions)

Reported Net Earnings

Adjustments (Net of tax): Inventory Step-Up in Cost of Sales Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Acquisition-Related, Restructuring and Special Charges (Credits) Extraordinary Loss Income from Discontinued Operations

Subtotal

Adjusted Net Earnings from Continuing Operations

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$123.6 $ 57.5 $ 13.7 $211.1 $255.2 $328.5 $434.4 $440.0 $643.6 $777.7

– 5.1 129.0 – – – – – – – 1.9 2.2 10.1 10.9 11.0 – – – – – – 55.0 – – – – – 120.8 15.9 52.7 – – – – – – – – 27.4 – – 21.8 12.3 (0.7) 0.4 11.5 – – – – – – – – 4.8 – – – – – (6.7) (7.2) (2.8) (11.4) (14.6) (15.2) (15.8) (2.0) (11.1) (6.3)

(4.8) 76.9 148.6 (1.2) 1.6 (3.7) (15.8) 118.8 32.2 46.4

$118.8 $134.4 $162.3 $209.9 $256.8 $324.8 $418.6 $558.8 $675.8 $824.1

6 Fact Book 2006-2007

Stryker Overview Diluted Net Earnings per Share as Reported*

0.31

0.15*

0.03*

0.52

0.63

0.81

1.07 1.08

1.57

1.89

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

$0.90

$1.05

$1.20

$1.35

$1.50

$1.65

$1.80

$1.95

$2.10

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

19% (52)% (80)% N.M. 21% 27% 32% 1% 45% 20%AnnualGrowth Rate

7 Fact Book 2006-2007

* 1998 and 1999 include Howmedica acquisition-related costs and charges N.M. = Not Meaningful

Stryker Overview Adjusted Diluted Net Earnings per Share

from Continuing Operations*

* ReCONCIlIAtION tO ADJuSteD Net eARNINgS PeR SHARe FROM CONtINuINg OPeRAtIONS (Millions)

Reported Diluted Net Earnings per Share

Adjustments (Net of tax): Inventory Step-Up in Cost of Sales Goodwill/Workforce Intangible Amortization Purchased In-Process Research & Development Income Taxes on Repatriation of Foreign Earnings Acquisition-Related, Restructuring and Special Charges (Credits) Extraordinary Loss Income from Discontinued Operations

Subtotal

Adjusted Diluted Net Earnings per Share from Continuing Operations

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$ 0.31 $ 0.15 $ 0.03 $ 0.52 $ 0.63 $ 0.81 $ 1.07 $ 1.08 $1.57 $1.89

– 0.01 0.32 – – – – – – – – 0.01 0.03 0.03 0.03 – – – – – – 0.14 – – – – – 0.30 0.04 0.13 – – – – – – – – 0.07 – – 0.06 0.03 – – 0.03 – – – – – – – – 0.01 – – – – – (0.02) (0.02) (0.01) (0.03) (0.04) (0.04) (0.04) – (0.03) (0.02)

(0.01) 0.20 0.37 – – (0.01) (0.04) 0.29 0.08 0.11

$ 0.30 $ 0.34 $ 0.41 $ 0.52 $ 0.63 $ 0.80 $ 1.03 $ 1.37 $1.65 $2.00

8 Fact Book 2006-2007

0.30 0.340.41

0.520.63

0.80

1.03

1.37

1.65

2.00

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

$0.90

$1.05

$1.20

$1.35

$1.50

$1.65

$1.80

$1.95

$2.10

13%30% 21% 27% 21% 27% 29% 33% 20% 21%AnnualGrowth Rate

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Stryker Overview 2006 Product Portfolio Sales

9 Fact Book 2006-2007

2006 2005 % Change

Orthopaedic Implants $3,110 $2,850 9%

MedSurg Products 2,037 1,759 16%

Total $5,147 $4,609 12%

$ Millions

Knees

Operating RoomEquipment

Trauma & Craniomaxillofacial

Medical Beds& Stretchers

Spine

Endoscopy

Other ReconstructiveHips

Orthopaedic Implants

60%

MedSurgProducts

40%

MedSurg Products Orthopaedic Implants

0

500

1,000

1,500

2,000

2,500

3,000

3,500

$ Millions

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

376

1,116*1,334 1,406

1,5371,798

2,193

2,5562,850

3,110

7% N.M. 20% 5% 9% 17% 22% 17% 12% 9%AnnualGrowth Rate

Stryker Overview 2006 Orthopaedic Implant Product Sales

* Proforma results assuming 12 months of sales for both Stryker and Howmedica. Orthopaedic Implant product sales as reported in 1998 were $410 million. N.M. = Not Meaningful

60% of Total Company Sales

Knees

Trauma &Craniomaxillofacial

SpineHips

Other Reconstructive

10 Fact Book 2006-2007

Stryker Overview 2006 MedSurg Product Sales


Endoscopy

Medical Beds & Stretchers

* Proforma results assuming 12 months of sales for both Stryker and Howmedica. MedSurg product sales as reported in 1998 were $578 million.

1997 1998 1999 2000 2001 2002 2003 2004 2005 20060

500

1,000

1,500

2,000

2,500

504672* 648

736884

1,0121,210

1,461

1,759

2,037

$ Millions

5% 33% (4)% 14% 20% 14% 20% 21% 20% 16%AnnualGrowth Rate

11 Fact Book 2006-2007

40% of Total Company Sales

Stryker Overview 2006 Sales by Geography

united States: 64%

International: 36%

Europe

Pacific

Canada & Latin America

United States

Japan

12 Fact Book 2006-2007

2006 2005 % Change Constant Currency

U.S. $3,298 $2,903 14% 14%

International 1,849 1,706 8% 9%

Total $5,147 $4,609 12% 12%

$ Millions

13 Fact Book 2006-2007

Market Overview

14 Fact Book 2006-2007

Medical Technology Market Overview 2006 Worldwide Market

Top Medical Technology Companies ($ Billions)

total total Med tech Company Rank Company Sales Sales

1. J&J 20.3 53.3

2. G.E. 16.6 163.4

3. Medtronic 12.1 12.1

4. Siemens 10.5 111.0

5. Baxter 10.4 10.4

6. Philips 8.5 33.9

7. Boston Scientific 8.5 8.5

8. Tyco 7.7 41.7

9. Stryker 5.1 5.1

10. Becton, Dickinson & Co. 5.0 5.9

11. B. Braun 4.0 4.0

12. Zimmer 3.5 3.5

13. St. Jude 3.3 3.3

14. 3M 3.2 22.9

15. Smith & Nephew 2.8 2.8

16. Hospira 2.7 2.7

17. Kodak 2.5 13.3

18. Synthes 2.4 2.4

19. Terumo 2.3 2.3

20. Alcon 2.2 4.8

21. Biomet 2.1 2.1

22. Fresenius 2.1 8.4

23. C.R. Bard 2.0 2.0

24. Dentsply 1.8 1.8

25. Invacare 1.5 1.5

J&J

Zimmer

Synthes

Smith & Nephew

Other

BiometStryker

Medtronic

Orthopaedic Market Overview 2006 Worldwide Market by Company

Market Size: $28.6 Billion

$ growth: 9%

15 Fact Book 2006-2007

Estimated ($ Billions) total Orthopaedic Orthopaedic Orthopaedic Company Sales Sales Market Share growth Rate

Stryker $5.1 $4.3 15% 10%

J&J 53.3 3.8 13% 7%

Zimmer 3.5 3.3 12% 6%

Medtronic 12.1 2.6 9% 14%

Synthes 2.4 2.4 8% 15%

Smith & Nephew 2.8 2.0 7% 11%

Biomet 2.1 1.8 6% 5%

Other ––– 8.4 30% 9%

total Market N/A $28.6 100% 9%

SpineDevices

Orthobiologics Arthroscopy

Other

Reconstructive Joint Replacement


Trauma & Craniomaxillofacial

Orthopaedic Market Overview 2006 Worldwide Market by Product


$ growth: 9%

Stryker participates in shaded areas

16 Fact Book 2006-2007

Implants Sales Percent growth of Market Rate

Knees $5.2 18% 7%

Spine Devices 4.7 16% 10%

Hips 4.5 16% 5%

Trauma & Craniomaxillofacial 3.9 14% 10%

Orthobiologics 3.2 11% 16%

Other Implants & Bone Cement 0.8 3% 7%

Subtotal $22.3 78% 9%

equipment & Other Sales Percent growth of Market Rate

Operating Room Equipment $2.5 9% 8%

Arthroscopy 2.4 8% 13%

Other 1.4 5% 9%

Subtotal $6.3 22% 10%

total Orthopaedic Market $28.6 100% 9%

Estimated ($ Billions)

2006 Percent of growth Constant Currency Market Rate growth Rate

United States $18.3 64% 12% 12%

Europe 6.8 23% 6% 6%

Japan 1.6 6% (5)% 0%

Pacific 1.1 4% 6% 8%

Canada & Latin America 0.8 3% 11% 7%

total Market $28.6 100% 9% 10%

Estimated ($ Billions)

Europe

Pacific

Canada & Latin America

United States

Japan

Orthopaedic Market Overview 2006 Worldwide Market by Geography


$ growth: 9%

Stryker participates in all geographic markets

17 Fact Book 2006-2007

Orthopaedic Implant Overview 2006 Worldwide Reconstructive Market


$ growth: 6%

Stryker growth: 6%

Stryker participates in all segments

Knees

Hips

Other Implants& Bone Cement

18 Fact Book 2006-2007

Zimmer 26%

J&J (DePuy) 22%

Stryker 20%

Biomet 10%

Smith & Nephew 9%

Other 13%

estimated Company Market Share

Interbody Devices

Cervical

ElectricalStimulation

Thoraco-Lumbar

Vertebral CompressionFractures

Orthopaedic Implant Overview 2006 Worldwide Spine Devices Market


$ growth: 10%

Stryker growth: 17%


19 Fact Book 2006-2007


Medtronic (Sofamor Danek) 34%

J&J (DePuy) 16%

Synthes 13%

Kyphon 9%

Stryker 8%

Biomet 4%

Zimmer 4%

Other 12%

Hip Fracture

Upper Extremity

Foot,Deformities,

Pediatric

Lower ExtremityCraniomaxillofacial Neuro

Orthopaedic Implant Overview 2006 Worldwide Trauma & Craniomaxillofacial Market


$ growth: 10%

Stryker growth: 13%


20 Fact Book 2006-2007


Synthes 41%

Stryker 16%

Smith & Nephew 8%

J&J (DePuy) 6%

Zimmer 5%

Biomet 4%

Other 20%

Growth Factors

DemineralizedBone Matrix

Synthetics

HyaluronicAcid

Allograft

Blood Based

Orthopaedic Implant Overview 2006 Worldwide Orthobiologics Market


$ growth: 16%

Stryker growth: 26%


21 Fact Book 2006-2007


Medtronic 23%

J&J (DePuy) 6%

Synthes 4%

Smith & Nephew 3%

Stryker 3%

Osteotech 3%

Other 58%

MedSurg Equipment Overview 2006 Worldwide O.R. Equipment Market


$ growth: 8%

Stryker growth: 12%


Powered Instruments

SurgicalEquipment

Navigation

22 Fact Book 2006-2007

Stryker 33%

Medtronic 8%

Zimmer 6%

Conmed (Linvatec) 5%

J&J (DePuy) 4%

Other 44%


MedSurg Equipment Overview 2006 Worldwide Endoscopy Market


$ growth: 10%

Stryker growth: 19%


Disposables

Rigid Scopes

Video Support

Electrosurgical

Implants &Instruments

Insufflators & Pumps

OtherCameras

Powered Instruments

Flexible Scopes

23 Fact Book 2006-2007


Olympus 21%

J&J (Ethicon, Mitek) 20%

Tyco (U.S. Surgical) 8%

Stryker 8%

Smith & Nephew 7%

Karl Storz 6%

Conmed (Linvatec) 5%

Other 25%

Hill-Rom 49%

Stryker 35%

Ferno-Washington 3%

Other 13%


Patient Handling Recovery Transport Surgical

Patient Room Med/Surg Maternity Critical Care Furniture

EMS

Other Furniture

MedSurg Equipment Overview 2006 North American Patient Handling Market


$ growth: 9%

Stryker growth: 18%


24 Fact Book 2006-2007

This page is intentionally left blank.

Joint Replacements

TTrauma, Extremities and Deformities

Craniomaxillofacial

Spine

Biologics

Surgical Products

Neuro & ENT

Interventional Pain

Navigation

Endoscopy

Communications

Imaging

Patient Handling Equipment

EMS Equipment

Copyright © 2007 Stryker AB2.13.07 Printed in USA

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