1. Copyright Ossur Össur & Royce Medical HONESTYFRUGALITYCOURAGE

2. Copyright Ossur  Second largest PROSTHETIC company in the world GOAL: To maintain leadership in prosthetics  A relatively small player in ORTHOTICS GOAL: To create a top tier player in O&P Össur hf.

3. Copyright Ossur 1.Create shareholder value by increasing earnings per share by 15% each year on average 2.Expand the Company’s Business to USD 180 million in sales by the end of 2006 3.Ensure profitable operation by an EBITDA margin of 20% 1.EPS for the period 2000-2004 CAGR 34% 2.12 months period ending 30 June 2005 total sales USD 196 million 3.Full year 2004 20% YTD 20% Finacial Goals 20012006

4. Copyright Ossur Top Player 1-3 Vision Prosthetic Market $500M Orthotic Market $1500 M Top Player 1-2 Player 5-6 in the US market Acquisitions Technical Innovation Today Vision O&P

5. Copyright Ossur Platforms for Growth 20052015 Time Price Products Systems Collaboration Mechanical Neuroimplants Bionics

6. Copyright Ossur ? Motion-enhancing technology into: Orthotic Devices 2007 Power Knee 2006 Bionic Technology Artificial intelligence Microprocessor Sensors Proprio Foot 2006

7. Copyright Ossur Strategy  Continue Prosthetics new platform  Leverage High Tech platform into Orthotics  Gain access to diverse group of specialists  Apply material and process know how to a larger platform  Gain manufacturing cost leadership  “Move up the ladder” towards rehabilitation

8. Copyright Ossur Royce Medical Holdings Royce Medical Jerome Medical Philadelphia Cervical Collar

9. Copyright Ossur Royce Medical 321 Associates $68 Million in Annual Revenue 35 Years of Service www.roycemedical.com

10. Copyright Ossur Products Innovative Products 11 US Patents & 19 international Patents 8 US Trademarks & 6 international Trademarks 13 New Products in Pipeline Product lines (Average Selling Price: $25-$100) Splinting Casting Bracing Systems: Knee / Wrist / Ankle

11. Copyright Ossur Innovator Post-Op Knee Brace Techform Casting Tape Equalizer Premium Air Walker Exoform Wrist Brace Universal Thumb Spica / Splint Royce Medical Products Miami J

12. Copyright Ossur Royce Sales Model in USA Direct sales International Markets & Key Accounts 50 Telesales Specialists 30 Territory Managers Privat Label Group Purchasing Organisation OrthoO&PPodiatryHospital Orthopedic surgeon Physical therapists Pyisical trainers

13. Copyright Ossur Ortho Hospital Podiatry O&P Distributors Other Manufacturers Royce Sales Channels

14. Copyright Ossur Royce Medical Winning Formula Strong Corporate Culture Innovative Products/Services Sales Model Manufacturing/Sourcing Expertise

15. Copyright Ossur Locations Royce Medical Camarillo Jeromy Medical Moorestown, New Jersey Philadelphia Collar Thorofare, New Jersey

16. Copyright Ossur Product Mix/Sales Össur & Royce Össur

17. Copyright Ossur Key benefits Acceleration of Ossur’s progress toward becoming one of the top players in orthotics Substantial increase in Ossur’s scale and presence in the US orthotics market Increased opportunities for sales of Ossur products through Royce Medical’s sales channels in North America Increased opportunities for sales of Royce products through Ossur’s sales channels in Europe Complementary business with minimal product overlap Royce Medical enjoys a strong management team with rich experience in the U.S. medical products market Creation of a new opportunity to leverage Ossur’s bionic technology into orthotics

18. Copyright Ossur Becoming Tier 1 Player in Orthotics Major Manufacturers 5%+ Market Share Broad Product Lines Wide Distribution Stock & Bill Players:dj Orthopedics, DeRoyal,Royce Medical/G2/Ossur, Aircast and Breg/Orthofix Tier 1 Mid-Level Manufacturers <5% Market Share Focused Product Lines Players:Active Ankle, Townsend,Innovation Sports,Bledsoe etc. Tier 2 Tier 3 Niche Players Small Market Share “Me Too” Products New Competitor or Low Performer Limited Distribution

19. Copyright Ossur