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[IP] Minimed announces record 4th quarter earnings

MiniMed Inc. Announces Record Fourth Quarter and 1999 Year End Results

SYLMAR, Calif.--(BUSINESS WIRE)--February 9, 2000-- 

-Growth of Insulin Pump Placements Exceeds 50% for the Second 

Consecutive Year- 

MiniMed Inc. (Nasdaq:<A HREF="aol://4785:MNMD">MNMD</A>) today announced 
financial results for the fourth quarter and the year ended December 31, 

For the fourth quarter of 1999, sales grew 55% to $70.9 million compared to 
$45.6 million in the comparable quarter of 1998. Net income increased 56% to 
$7.4 million, or $0.23 per share on a diluted basis, compared to net income 
of $4.8 million, or $0.16 per share on a diluted basis, reported in the 
comparable quarter of 1998. The Company's 1999 fourth quarter results 
included a $1.5 million charge related to software correction on certain 
Model 508 insulin pumps sold just after introduction early in the first half 
of the fourth quarter. This non-recurring charge, recorded to cost of sales, 
reduced net income and earnings per share for the quarter and for the 1999 
fiscal year by approximately $900,000 and $.03, respectively. 

For the year ended December 31, 1999, sales grew 53% to $212.3 million 
compared to sales of $138.6 million for fiscal 1998. Net income increased 68% 
to $21.9 million, or $0.70 per share on a diluted basis, compared to net 
income of $13.0 million, or $0.46 per share on a diluted basis, reported in 
fiscal 1998. 

Commenting on the results and other recent developments, Alfred E. Mann, 
Chairman and Chief Executive Officer, stated, "All aspects of our 
organization responded to the 1999 fourth quarter opportunity. During the 
quarter, we achieved record sales and earnings, launched our latest 
generation insulin pump and recognized the first revenues on our continuous 
glucose monitoring system. We also filed the first in a series of supplements 
to our parent PMA on our sensor product in order to bring a consumer version 
of this system to market next year. We continue to receive very positive 
feedback from our customers on our new Model 508 insulin pump, and we are 
currently in the process of upgrading the software on the initial units 
shipped. All estimated costs related to this minor software correction were 
recorded in fiscal 1999, and the upgrade will be completed by the end of the 
first quarter of fiscal 2000. We are also making progress on several other 
fronts, including the implementation of our strategic alliances and the 
construction of our new world-wide headquarters, the first phase of which is 
on schedule to be completed in the third quarter of this year." 

Terrance H. Gregg, President and Chief Operating Officer, added, "Our strong 
fourth quarter and fiscal year are further indications of the continued 
world-wide acceptance of insulin pump therapy as the best method of 
intensively managing diabetes. During the fourth quarter, MiniMed sold as 
many insulin pumps in the United States as we sold in all of fiscal 1996. For 
the second year in a row, insulin pump placement growth exceeded 50%, with 
international pump placements growing at an even faster rate in 1999. 
Moreover, we estimate that the installed base of pump patients grew by almost 
40% in 1999, and we expect to place our 100,000th insulin pump this year." 

MiniMed Inc. designs, develops, manufactures and markets advanced infusion 
systems with a primary emphasis on the intensive management of diabetes. The 
Company's products include external pumps and related disposables, a first 
generation continuous glucose monitoring system as well as exclusive 
marketing rights to an implantable insulin pump, which is currently approved 
for distribution in the European Community and has not yet been cleared for 
marketing in the U.S. The Company is also developing new infusion systems to 
deliver compounds designed to treat a variety of other medical conditions. 

This Press Release contains statements that are forward- looking, including 
statements relating to future results of operations, growth or capital, the 
development, regulatory approval, manufacture, introduction, distribution, 
and commercial acceptance of new products including those designed to treat a 
variety of medical conditions, the timing of any regulatory approvals 
relating to new products, the timing of the construction of new facilities, 
MiniMed's ability to upgrade the software on it's 508 insulin pumps by the 
first quarter of 2000, the ability to adequately fund new products or growth, 
the development and timing of new or improved versions of the continuous 
glucose monitoring system, and MiniMed's future product portfolio, are made 
pursuant to the Safe Harbor provisions of the Private Securities Litigation 
Reform Act of 1995. Investors are cautioned that, although MiniMed believes 
that its expectations are based on reasonable assumptions, forward-looking 
statements involve risks and uncertainties which may affect MiniMed's 
business and prospects, including changes in economic and market conditions, 
acceptance of MiniMed's products by the health care and reimbursement 
communities, health care legislation and regulation, new developments in 
diabetes therapy, the ability to obtain administrative and regulatory 
approvals for products currently in development, competitive developments, 
changes in MiniMed's capital requirements, construction delays, and other 
factors discussed in the Company's filings with the Securities and Exchange 

                             MiniMed Inc. 

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