ssur Royce Medical HONESTY FRUGALITY COURAGE Copyright Ossur

Össur & Royce Medical HONESTY FRUGALITY COURAGE Copyright Ossur

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

Finacial Goals 2001 2006 1. Create shareholder value by increasing earnings per share by 15% each year on average 1. EPS for the period 2000 -2004 CAGR 34% 2. Expand the Company’s Business to USD 180 million in sales by the end of 2006 2. 12 months period ending 30 June 2005 total sales USD 196 million 3. Ensure profitable operation by an EBITDA margin of 20% 3. Full year 2004 20% YTD 20% Copyright Ossur

Vision O&P Top Player 1 -3 Acquisitions Today Player 5 -6 in the US market no n I l Orthotic Market $1500 M n io t a v ica n h c Top Player 1 -2 Te Prosthetic Market $500 M Copyright Ossur

Platforms for Growth Price Neuroimplants Bionics Mechanical Collaboration Systems Products Time 2005 2015 Copyright Ossur

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

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

Royce Medical Holdings • Royce Medical • Jerome Medical • Philadelphia Cervical Collar Copyright Ossur

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

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

Royce Sales Model in USA International Markets & Key Accounts Direct sales 50 Telesales Specialists Ortho 30 Territory Managers O&P Podiatry Privat Label Group Purchasing Organisation Hospital • Orthopedic surgeon • Physical therapists • Pyisical trainers Copyright Ossur

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

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

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

Product Mix/Sales Össur & Royce 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 Copyright Ossur

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

Copyright Ossur