Published: April 01, 2010
Synergetics Announces Closing of Strategic Agreement with Stryker Corporation
O’FALLON, Mo. - (BUSINESS WIRE) - Synergetics USA, Inc. (NASDAQ: SURG), a medical device company that
designs, manufactures, and markets innovative microsurgical instruments
for ophthalmic and neurosurgical applications, today announced the
closing of a strategic agreement with Stryker Corporation. The agreement
includes the sale of Synergetics' accounts receivable, open sales
orders, inventory and certain intellectual property related to the Omni
product line. In addition, the agreement provides for Synergetics to
supply disposable ultrasonic instrument tips and certain other
consumable products used in conjunction with the Sonopet/Omni
ultrasonic aspirator console and handpieces; and pursue certain
development projects for new products associated with Stryker's
intraoperative ultrasound products.
Synergetics will receive between $2.5 million and $3.0 million in
proceeds from the transactions once all inventory transfers are
completed.
"We believe the new strategic agreement with Stryker will be an
important part in expanding our neurosurgery device sales," commented
David Hable, the Company's President and Chief Executive Officer.
"Stryker has committed significant resources to the Sonopet/Omni
product line and has a very strong sales organization to market the
product line in domestic and international markets.
Hable went on to say, "Since the agreement was announced in November
2009, we have been adjusting and streamlining our organization to ensure
we are ready to support the transfer of certain assets to Stryker. We
are in an excellent position to supply Synergetics' products to Stryker
for use with the ultrasonic aspirator products, and we are looking
forward to working with Stryker on the development programs.
"The proceeds from the Stryker transaction will be used primarily to pay
down lines of credit to strengthen our balance sheet and improve our
financial flexibility. We also hope to see increased sales of disposable
ultrasonic instrument tips to Stryker in the future," concluded Mr.
Hable.
About Synergetics USA, Inc.
Through continuous improvement and development of our people, our mission
is to design, manufacture and market innovative microsurgical
instruments, capital equipment, accessories and disposables of the
highest quality in order to assist and enable surgeons who perform
microsurgery around the world to provide a better quality of life for
their patients.
Synergetics USA, Inc. (the "Company" ) is a leading supplier of precision
microsurgery instrumentation. The Company's primary focus is on the
microsurgical disciplines of ophthalmology and neurosurgery. Our
distribution channels include a combination of direct and independent
sales organizations and important strategic alliances with market
leaders. The Company's product lines focus upon precision engineered,
microsurgical, hand-held instruments and the delivery of various energy
modalities for the performance of less invasive microsurgery including:
(i) laser energy, (ii) ultrasonic energy, (iii) radio frequency
for electrosurgery and oblation and (iv) visible light energy for
illumination, and where applicable, simultaneous infusion (irrigation)
of fluids into the operative field. The Company's website address is http://www.synergeticsusa.com.
The website address for the Pinnacle 360OTM is http://www.synergeticsusa.com/pinnacle360/.
Forward-Looking Statements
Some statements in this release may be "forward-looking statements"
for the purposes of the Private Securities Litigation Reform Act of
1995. In some cases forward-looking statements can be identified by
words such as "believe," "expect," "anticipate," "plan," "potential,"
"continue" or similar expressions. Such forward-looking statements
include risks and uncertainties, and there are important factors that
could cause actual results to differ materially from those expressed or
implied by such forward-looking statements. These factors, risks
and uncertainties are discussed in the Company's Annual Report on Form
10-K for the year ended July 31, 2009, as updated from time to time in
our filings with the Securities and Exchange Commission. The
Company is not responsible for updating the information contained in
this press release beyond the published date, or for changes made to
this document by wire services or Internet services.

Synergetics USA, Inc.
Pamela G. Boone, Chief Financial Officer,
636-939-5100
http://www.synergeticsusa.com
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