(NASDAQ:OFIX)--

Highlights:

4Q sales up 40%, full-year sales up 41%.4 million or 3%.59, an increase of 28%, which takes
into account additional shares related to the Breg transaction and
stock option exercises in 2004, compared with $0.8 million at December 31, 2004, and
still report an ending cash balance of $40. In addition, the
measure is commonly used by investors, analysts and peers in the
Company's industry for purposes of valuation and comparing the
operating performance of the Company to other companies in its
industry.com

FORWARD-LOOKING STATEMENTS

This communication contains certain forward-looking statements
under the Private Securities Litigation Reform Act of 1995. These
forward-looking statements, which may include, but are not limited to,
statements concerning the projections, financial condition, results of
operations and businesses of Orthofix and are based on management's
current expectations and estimates and involve risks and uncertainties
that could cause actual results or outcomes to differ materially from
those contemplated by the forward-looking statements.

splint unimed

5 2%
Reconstruction 31.8 13. For the full year we reported sales growth of
41% and net income growth of 38%.P hip fracture repair system tripled in sales in
2004."
Federico stated further, "Lower SG+A and operating expense ratios
for the fourth quarter and year compared with the prior year partially
offset lower gross profit margins which resulted from the blending of
Breg's lower gross profit margins into the total.

pedorthist orthoses

dj Orthopedics Receives Commendation from the Arthritis Foundation for Easy to Use Osteoarthritis Knee Braces

Federico , President and CEO of Orthofix, reiterated
comments made on February 17, 2005, in the Company's release of
preliminary sales results, "We concluded 2004 with an excellent fourth
quarter reflecting 40 % sales growth and 39% growth in net income over
the prior year periods. For more information about Orthofix,
please visit www.59 $ 0.V.

pedicularis mobilis

S.5 million, an increase of 39% compared with $6.9 6%
------ ------ --------- ------- ------- ---------

Total $73.6 3% $81. Even
with these difficulties we reported strong sales growth matched by
strong earnings growth. In addition to the Breg acquisition, products
serving the trauma and reconstruction market sectors led sales growth
in 2004.0 million on outstanding term loan
borrowings .

orthopedic orthotics

Frost + Sullivan estimates the OA knee brace market at $61. Earnings per diluted share for the fourth quarter
ended December 31, 2004, was $0. Diluted weighted average shares
outstanding were 16,044 ,249 and 14,854,946 during the three months
ended December 31, 2004, and December 31, 2003, respectively .
Net income for the year ended December 31, 2004, was $34.14, an increase of 27%, which takes into account
additional shares related to the Breg transaction and stock option
exercises in 2004, compared with $1. Diluted weighted average shares outstanding were
15,974,945 and 14,681,883 for the year ended December 31, 2004, and
December 31, 2003, respectively.

softgoods promed

Commenting on the role of
knee braces, Dr.C.7 million for the same
period in 2003.0 4% $92.3 11%
------ ------ --------- ------- ------- ---------

Total $73. We remain convinced that the recent FDA approval for the
Cervical-Stim will enable us to accelerate in 2005 our rate of growth
in the important spine market sector.61 $ 0.

If you are selling products to the public/consumer, please submit to the Shopping tree: Shopping/Health and Beauty:
Shopping/Health and Beauty/Orthopedic

mobilis prosthetists

An independent
research lab found DonJoy OA Braces to be lightweight and low profile,
allowing them to be worn under clothing and adjusted to suit the patient's
activity level.com

V. The
positive impact of foreign currency on sales for the fourth quarter of
2004 was $1.8 million for the
same period in 2003.5 million or 3%.7 - - $68.6 $52.2 136%
Trauma 15.7 17%
------ ------ --------- ------- ------- ---------

Total Orthopedic 68.4 44%

Non-Orthopedic 5. External fixation products grew 32% in reconstruction and 11%
in trauma . Earnings before
interest, taxes, depreciation and amortization (EBITDA) generated by
the Company in 2004 was $70.V. In addition, Orthofix is
collaborating in R+D partnerships with leading medical institutions
such as the Orthopedic Research and Education Foundation, the
Cleveland Clinic Foundation , Innovative Spinal Technologies and
National Osteoporosis Institute.S.

pedorthist realignment

When the
joint becomes malaligned, deterioration become more rapid and pain increases.
Approximately 3% of all adult Americans have at least one joint with evidence
of OA visible on an X-ray.

Trauma sector: Revenue up 17% for the full-year, paced by
long-bone stimulation products growing at more than twice the
rate of the market; PC.2 million cash balance.6 $203."
Federico concluded, "Overall , 2004 was a positive year. EBITDA is not a measure calculated in accordance with GAAP
and should not be considered as an alternative to (i) net income, or
(ii) cash flows from operating, investing or financing activities as
an indicator of cash flows or as a measure of liquidity.
Factors that could cause or contribute to such differences may
include, but are not limited to, unanticipated expenditures, changing
relationship with customers, suppliers and strategic partners, risks
relating to the protection of intellectual property, changes to the
reimbursement policies of third parties , changes to governmental
regulation of medical devices, the impact of competitive products,
changes to the competitive environment, the acceptance of new products
in the market, conditions of the orthopedic industry and the economy
and other factors described in the most recent report on Form 10-K and
other periodic reports filed by Orthofix with the Securities and
Exchange Commission.S.

variteks juzo

"The goal of the Ease of Use Commendation program is to identify
products that are effective and easy-to-use for people with arthritis to help
them maintain an active lifestyle."
Richard D. Fourth-quarter sales included the incremental
impact of Breg, Inc.

Net sales by business segment for the periods ended December 31,
(In millions)

Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -------------------------
% %
2004 2003 Increase 2004 2003 Increase
------ ------ --------- ------- ------- ---------

Americas Orthofix $33. This growth, and approximately $116 million in sales, testifies
to the vitality that our array of diversified surgical products
serving the reconstruction and trauma markets delivers to the Company ., a diversified orthopedic products
company, offers a broad line of minimally invasive surgical, as well
as non-surgical, products for the spine, reconstruction, and trauma
market sectors that address the lifelong bone-and-joint health needs
of patients of all ages-helping them achieve a more active and mobile
lifestyle. Orthofix's products are widely distributed around the world
to orthopedic surgeons and patients - via Orthofix's sales
representatives, its distributors and via partnerships with other
leading orthopedic product companies, such as Medtronic Sofamor Danek,
Stryker Howmedica , and Kendall Healthcare.68

Weighted average
number of common
shares outstanding -
basic 15,666,158 14,237,904 15,396,540 14,061,447

Weighted average
number of common
shares outstanding -
diluted 16,044,249 14,854,946 15,974,945 14 ,681,883

ORTHOFIX INTERNATIONAL N.

Prosthetic products are to be submitted to the appropriate category in Business/Healthcare/Products and Services/Prosthetics.

orthotic variteks

"With concerns about
long-term use of anti-inflammatory medications like the Cox-2 group, the
utilization of a load-shifting brace is a very viable alternative treatment to
explore. EBITDA grows 52% to
$70. Earnings per diluted share for the year ended December
31, 2004, was $2.7 7% $126.6 43% 265.7 41%
====== ====== ========= ======= ======= =========

Charles W.46 $ 2.

danek softgoods

6 percent through 2009.
The Company sells its products in the United States and in more than 40
other countries through networks of agents, distributors and its direct sales
force that market its products to orthopedic and podiatric surgeons, spine
surgeons, orthopedic and prosthetic centers, third-party distributors,
hospitals, surgery centers, physical therapists, athletic trainers and other
healthcare professionals.V.3 - -

International
Orthofix $22.C.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U. Dollars, in thousands)

As of As of
--------------- -------------
December 31, December 31,
-------------------------------
2004 2003
------ --------- --------------
Assets
Current assets:
Cash and cash equivalents $ 40,246 $ 31,356
Trade accounts receivable 75,321 70,690
Inventory 32,895 30,713
Deferred income taxes 4,130 3,978
Prepaid expenses and other 10,000 11,131
--------------- --------------
Total current assets 162,592 147,868

Securities and other investments 4,082 5,775
Property, plant and equipment, net 18,326 19,169
Intangible assets, net 240,533 234,123
Other long-term assets 6,201 6,244
--- ------------ --------------
Total assets $ 431,734 $ 413,179
=============== ==============

Liabilities and shareholders ' equity
Current liabilities:
Bank borrowings $ 76 $ 72
Current portion of long-term debt 10,057 11,063
Trade accounts payable 9,507 11,569
Other current liabilities 26,322 30,236
--------------- --------------
Total current liabilities 45,962 52,940

Long-term debt 67,249 99,072
Deferred income taxes 17,612 16,642
Deferred income 2,443 2,500
Other long -term liabilities 1,296 1,249
--------------- --------------
Total liabilities 134,562 172 ,403
--------------- --------------

Shareholders' equity
Common shares 1,572 1,498
Additional paid-in capital 98,388 81,960
Less: Treasury shares, at cost -- --
--------------- --------------
99,960 83,458
Retained earnings 182,073 147,924
Accumulated other comprehensive
income 15,139 9,394
------------- -- --------------
Total shareholders' equity 297,172 240,776
--------------- --------------

Total liabilities and
shareholders' equity $ 431,734 $ 413,179
=============== ==============

ORTHOFIX INTERNATIONAL N.

juzo variteks

----Orthofix
International N.2 184.
"In 2004 and early 2005, we welcomed five new independent board
members to our Board of Directors.4 million in
2003, a growth of 52% over the prior year.

pedicularis unimed

"dj Orthopedics is committed to providing the highest
quality knee braces to improve the lives of those dealing with the daily
challenges of OA. The Company's
regeneration products consist of bone growth stimulation devices that are used
to treat nonunion fractures and as an adjunct therapy after spinal fusion
surgery .djortho.6
million, an increase of 40% over the $52.3 47. We would also like to
thank our retiring directors for their many years of service, which
have been instrumental in building Orthofix into the international
orthopedic company it is today," said Federico.V.

This means those businesses that serve the healthcare orthopedic industry, not the healthcare industry itself.

prosthetists realignment

OA brace
market is one of the fastest growth areas in the rigid knee bracing market.

4Q net income rises by 39% , full-year net income climbs by
38%.

Acquisition integration succeeding: Breg's reconstruction
sector growth rate nearly doubles the market's rate of growth.6 $203. These new directors , with their
exceptional financial and healthcare backgrounds, bring a level of
talent to the board that can assist Orthofix to become a truly
exciting global orthopedic products company.

- - Financial tables follow -

ORTHOFIX INTERNATIONAL N.

splints orthotic

dj Orthopedics' OA braces offer arthritis patients simple to use,
non-operative, non-pharmacological pain relief for knee OA.
"In light of recent concerns regarding certain pain relieving drug
therapies, we are pleased that the Arthritis Foundation, the foremost
authority on arthritis in the United States, has bestowed the DonJoy OA
bracing line with this prestigious distinction," said Les Cross, president and
CEO of dj Orthopedics. In his practice, he sees many patients who are
looking for relief of knee pain due to arthritis.7M in 2003
with a compounding annual growth rate of 10.

Reconstruction sector: External fixation products up 32%;
AV-Impulse hits 4Q forecast., which was acquired on December
30, 2003.7 million, compared with $46.

Year Ended December 31,
---------------------------------
2004 2003
---------------- ----------------
Net Income $34,149 $24,730
Add:
Interest expense, net 5,966 161
Income taxes 16,210 14,585
Depreciation 7,853 5,707
Amortization 6,543 1 ,242
---------------- ----------------
$70,721 $46,425
================ ================

Orthofix International, N.

scient softgoods

John H. It is the commitment of the Arthritis
Foundation to encourage manufacturers to design user-friendly products and
packaging. With
time the cortical surface of the bone is weakened and may collapse.

Supplemental Disclosure Regarding Non-GAAP Financial Measure

EBITDA represents income before net interest expense, income
taxes , depreciation and amortization.76

Net income per
common share -
diluted $ 0.

mobilis tibiale

SAN DIEGO, dj Orthopedics, Inc.,
(NYSE: DJO), a global medical device company specializing in rehabilitation
and regeneration products for the non-operative orthopedic and spine markets,
today announced that the Company's line of DonJoy(R) Osteoarthritis (OA) knee
braces has received the Arthritis Foundation's "Ease-of-Use" Commendation. The Company's OA braces function by shifting the knee's load
from the OA affected compartment of the knee to healthier side of the knee.

Orthofix International N.
Net income for the fourth quarter ended December 31, 2004 , was
$9.0 $30.7 41%
====== ====== ========= ======= ======= =========

Net sales by market sector for the periods ended December 31,
(In millions)
Three Months Ended Twelve Months Ended
December 31 , December 31,
----------------------- ------------------------ -
% %
2004 2003 Increase 2004 2003 Increase
------ ------ --------- ------ - ------- ---------
Orthopedic Products
-------------------
Spine $21.9 51 .9 53. The Physio-Stim for long bone nonunions in trauma grew 21%
in 2004, and the PC.S.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.

juzo scient

"Arthritis is the leading cause of disability in the U."
Knee osteoarthritis is the destruction of articular cartilage, followed by
the destruction of the underlying bone due to wear and contact pressure. The Company's broad range of over
600 rehabilitation products, including rigid knee braces, soft goods and pain
management products, are used in the prevention of injury, in the treatment of
chronic conditions and for recovery after surgery or injury.C.6 million ,
an increase of 41% over the $203.9 $22.7 40% $286.3 5.4 19.

mobilis orthopedic

Business Editors

HUNTERSVILLE, N.
Sales for the fourth quarter ended December 31, 2004, were $73.7 million reported during the
same period in 2003.46 per diluted share
for the same period in 2003.7 million reported during the same
period in 2003. Sales for the year ended December 31, 2004, included
the incremental impact of Breg, Inc. The positive impact of foreign currency on sales for the
twelve -month period was $6.1
million, an increase of 38% compared with $24.
The following tables display net sales by business segment, net of
inter-company eliminations and by market sector for the three months
and year ended December 31, 2004, and 2003. We provide net sales by
market sector for information purposes only.8 8%

Americas Breg $17.6 $52. We are pleased that we were able to
overcome challenges experienced during 2004 resulting from the slowing
in 2004 of the spine stimulation market and contract repricing and
inventory balancing that occurred on the A-V Impulse product.orthofix.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.

If your site is targeted for the public and not the healthcare orthopedic industry please submit your site to the appropriate category in Health.

juzo synthes

Parker cited several studies that show significant pain
relief and increased function by people who used them.

Debt reduced: Strong free cash flow reduces debt 30% while the
year ends with $40.68 per diluted share for the same
period in 2003.4 134% 120.2 million. Dollars, in thousands, except per share and share data)

For the three months For the twelve months
-------------- --------- -----------------------
ended December 31, ended December 31,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------

Net sales $ 73,618 $ 52,708 $ 286,638 $ 203,707
Cost of sales 20,351 13,013 79,177 51,090
- ---------- ----------- ----------- -----------
Gross profit 53,267 39,695 207,461 152,617
----------- ----------- ----------- -----------

Operating expenses
Sales and
marketing 26,000 19,328 102,452 76,756
General and
administrative 8,219 5,326 30,621 20,465
Research and
development 2,739 2,149 11,471 8,128
Amortization 1,594 339 6,348 995
Litigation and
settlement costs 302 958 1,568 5,689
----------- ----------- -- --------- -----------
38,854 28,100 152,460 112,033
----------- ----------- ----------- -----------

Operating
income 14,413 11,595 55,001 40,584

Interest income/
(expense) (1,370) (215) (5,966) (161)
Other income/(loss) 1,312 328 1,652 677
Gain/(loss) in joint
venture (219) (610) (328) (1,785)
----------- ----------- ----------- -----------
Income before
income tax 14,136 11,098 50,359 39,315

Income tax expense (4,622) (4,257) (16,210) (14,585)
---------- - ----------- ----------- -----------
Net income $ 9,514 $ 6,841 $ 34,149 $ 24,730

Net income per
common share -
basic $ 0.

proseries splints

Parker , MD practices orthopedics and sports medicine at the
Cleveland Clinic Foundation.

About dj Orthopedics, Inc.

Spine and long-bone stimulation sales capture additional
market share.P hip fracture sales triple.0 $116.6 16% 62.
In addition, we successfully integrated Breg, whose reconstruction
business grew at 10% in 2004, nearly twice the reported rate of market
growth.0 million to $76. The Company believes the presentation of
EBITDA is useful for investors because it makes it easier to compare
the Company's results with other companies that have different
financing and capital structures or tax rates.48 $ 2.

Links for those businesses that sell products or services to the Professional Healthcare Orthopedic Industry.

danek promed

dj Orthopedics' OA knee brace includes four different products, the
custom Adjustable OA Defiance(R) and the custom Montana2(R), both for more
active OA patients, and two off the shelf products, the patient ready
OAdjuster(R) and the OA Everyday(TM) (for every day activities)."
An active and aging population in the United States drives the OA bracing
market. For additional information on the Company, please
visit http:/ /www.2 $20. The positive effect of a broader base product offering is
seen in the overall sales growth of 41%. EDITDA
is presented and discussed because management believes it is a useful
adjunct to net income and other measurements under accounting
principles generally accepted in the United States , since it is a
meaningful measure of a company's performance and ability to meet its
future debt service requirements, fund capital expenditures and meet
working capital requirements.V.14 $ 1.

orthotics splints

dj Orthopedics is a global medical device
company specializing in rehabilitation and regeneration products for the
non-operative orthopedic and spine markets.

Orthofix Reports Record Sales for the Fourth Quarter and for the Year 2004; Full-Year Net Income Increases 38%

, which was acquired on December 30, 2003.3 $86.1 4% 21.22 $ 1.

promed pedicularis

Klippel, CEO of the Arthritis
Foundation .7 million in 2004.3 13. With Cervical-Stim having the
first and only 'on-label' FDA approval for a bone growth stimulator
for use as an adjunct to cervical (upper) spine fusion in high risk
patients , plus a number of announced new products that are now being
introduced to the market, we expect to have good momentum in 2005, and
I expect continued growth in both sales and earnings.
During the fourth quarter, the Company made further scheduled and
voluntary prepayments of $15. Dollars, in thousands)

For the year ended
December 31,
-------------------
2004 2003
-------- ---------

Net cash provided by operating activities $ 41,498 $ 31,789
-------- ---------
Cash flows from investing activities:
Investment in subsidiaries and affiliates (2,556) (150,572)
Capital expenditure (12,243 ) (5,238)
Proceeds from sale of joint venture 1,300 -
Proceeds from sale of assets and marketable
securities 1,635 354
Proceeds from settlement of distributor
agreement 440 -
-------- ------- --
Net cash used in investing activities (11,424) (155,456)
-------- ---------

Cash flows from financing activities:
Net (repayment) proceeds of loans and
borrowings (33,534 ) 102,097
Proceeds from issuance of common stock 12,247 11,705
Acquisition of treasury shares - (4,395)
Payment of debt issuance costs (532) (2,783)
-------- ------ ---
Net cash (used in) provided by financing
activities (21,819) 106,624
-------- ------ ---

Effect of exchange rate changes on cash 635 1,789
-------- ---------

Net (decrease) increase in cash and cash
equivalents 8,890 (15,254)
Cash and cash equivalents at the beginning of the
period 31,356 46,610
-------- ---------
Cash and cash equivalents at the end of the
period $ 40,246 $ 31,356
-------- ---------

splint splints

affecting nearly
70 million Americans," said Dr. Products are then rigorously reviewed and tested by an independent
lab to ensure that they are easy to use by people with functional limitations
due to the effects of arthritis.

Patient's who wear an OA knee brace generally experience an immediate
reduction in knee pain associated with movement, enabling them to remain
active. (NASDAQ:OFIX) today announced results
for the fourth quarter and the year ended December 31, 2004.
Sales for the year ended December 31, 2004, were $286 .4 $79.7 40% $286. The
accretive effect of the Breg acquisition coupled with the continued
profitability of our core business generated a robust 38% growth in
net income. Strong free cash flow enabled the Company to reduce its
term loan used to finance the Breg acquisition by 30%, from an initial
balance of $110. The following table reconciles
net income, representing the most comparable measure under accounting
principles generally accepted in the United States, to EBITDA.