1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. U.S. Orthopedic Braces & Supports Markets Bright Market Niches in a Major Device Category Medical Devices Group “The number of Americans at risk for osteoporosis is estimated to grow to about 60 million by 2020, leading to a corresponding growth in the use of assistive devices such as orthopedic braces and supports.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends Increasing incidence of osteoporosis and arthritis drives demand for orthopedic braces Active baby boomer population increases the need for orthopedic braces Sedentary and obese population contributes to greater incidence of osteoarthritis and higher market revenue Rise in sports injuries plays a major role in fueling revenue growth Manufacturers' promotion of braces and supports for prophylactic and performance-enhancing benefits boosts market revenue Increase in diabetic-related ailments contributes to strong growth in walkers, foot and ankle braces, and softgoods

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends (Cont’d) New product innovations drive revenue growth through higher prices and market expansion E-commerce and on-line sales boosts orthopedic brace and support market Stock and Bill programs allow manufacturers to bill insurers directly and achieve higher profit margins

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications Market sizing and competitive analysis Market forecasts and opportunity analysis Additional market analysis on the high-growth sectors of cold therapy systems and disposable pain infusion pumps

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: The United States Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Highly detailed market forecasts Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants Accurate third-party assessment of market for use in business planning Assess current and future drivers and restraints Determine and exploit new application opportunities Find detailed, market sizing numbers for your own planning needs New Entrants Analyze challenges associated with the industry Learn about winning strategies used by existing competitors Position yourself to capitalize on the market’s unmet needs Third-party market estimations for use in business plan Investment Community Analyze long-term strategies of companies selling orthopedic braces and supports Determine which participants will outperform the competition Assess attractiveness of investing in the orthopedic braces and supports market

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included Knee braces and supports Ankle braces and supports Lower leg walkers Back softgoods Upper extremity softgoods Cold therapy systems Disposable pain infusion pumps

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Market Participants Aircast, Inc. Bauerfeind USA, Inc. Becton Dickinson Beiersdorf, Inc. Bike Athletic Co. Bledsoe Brace Systems Breg Chase Ergonomics Chattanooga Corp. Cramer Products DeRoyal Industries, Inc. dj Orthopedics Encore Medical Ergodyne FLA Orthopedics, Inc. Frank Stubbs Co., Inc. Generation II Innovation Sports McDavid Knee Guard, Inc. Mueller Sports Medicine NDL Products, Inc. Royce Medical Saunders Group, Inc. Stromgren Supports Swede-O TECNOL Zinco

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