Two new studies showCoblation(R) devices were effective for safely treating symptomaticchondral defects in the knee. The two studies were presented at theArthroscopic Association of North America (AANA) annual meeting held May 18to 21 at the Westin Diplomat Resort & Spa, Hollywood, Florida.

Coblation is a patented technology (ArthroCare Corp. Nasdaq: ARTC) thatcombines bipolar radiofrequency energy with a saline solution to gently andprecisely remove soft tissue at low temperatures, typically 40 to 70degrees Celsius.

The first study, presented by Ferdinando Battistella, MD, orthopaedicsurgeon at Legano Hospital (Milan, Italy) is the first clinical study toevaluate in vivo histologic findings after the use of bipolarradiofrequency-based methods in articular cartilage of the knee. Results ofthe study indicate this approach can be used to safely treat grades II andIII lesions in the knee.

"The cells in the tissue surrounding the treated area were healthymonths after the procedure, which may decrease the chance of long termdegeneration," said Battistella, lead author of the study titled: In VivoHistology Findings Through One Year After Clinical Use of BipolarRadiofrequency-Based Chondroplasty. "These findings are significant fororthopaedic surgeons as I have also found Coblation is easy to use andproduces a smoother surface than a mechanical shaver during the debridementof articular cartilage."

A second study, Osteonecrosis Following Arthroscopic Chondroplasty -- aRetrospective Evaluation of 521 Patients Who Underwent Arthroscopic KneeSurgery -- indicated no relationship between the onset of osteonecrosis andthe type of surgical device used for treating symptomatic chondral defectsin the knee. The study was presented by Dain Allred, MD, orthopaedicsurgeon at the University of Rochester School of Medicine.

Of the 521 patients receiving arthroscopic knee surgery and treatmentof chondral defects using Coblation alone, a mechanical shaver alone, orboth Coblation and a mechanical shaver, there were no cases ofosteonecrosis among the 52 people treated with Coblation alone. The rate ofosteonecrosis following chondroplasty with a mechanical shaver was 0.98percent (2 out of 205 people), and among those who were treated using bothmethods, the rate of osteonecrosis was 1.2 percent (3 out of 259 people).

Founded in 1993, ArthroCare Corp. ( http://www.arthrocare.com ) is a highlyinnovative, multi-business medical device company that develops,manufactures and markets minimally invasive surgical products. With theseproducts, ArthroCare targets a multi-billion dollar market opportunityacross several medical specialties, significantly improving existingsurgical procedures and enabling new, minimally invasive procedures. Manyof ArthroCare's products are based on its patented Coblation technology,which uses low-temperature radiofrequency energy to gently and preciselydissolve rather than burn soft tissue -- minimizing damage to healthytissue. Used in more than four million surgeries worldwide, Coblation-baseddevices have been developed and marketed for sports medicine;spine/neurologic; ear, nose and throat (ENT); cosmetic; urologic andgynecologic procedures. ArthroCare also has added a number of noveltechnologies to its portfolio, including Opus Medical sports medicine,Parallax spine and Applied Therapeutics ENT products, to complementCoblation within key indications.

Except for historical information, this press release includesforward-looking statements. These statements include, but are not limitedto, the company's stated business outlook for fiscal 2006 and 2007,continued strength of the company's fundamental position, the strength ofthe company's technology, the company's belief that strategic moves willenhance achievement of the company's long term potential, the potential andexpected rate of growth of new businesses, continued success of productdiversification efforts, and other statements that involve risks anduncertainties. These risks and uncertainties include, but are not limitedto the uncertainty of success of the company's non-arthroscopic products,competitive risk, uncertainty of the success of strategic businessalliances, uncertainty over reimbursement, need for governmental clearancesor approvals before selling products, the uncertainty of protecting thecompany's patent position, and any changes in financial results fromcompletion of year-end audit activities. These and other risks anduncertainties are detailed from time to time in the company's Securitiesand Exchange Commission filings, including ArthroCare's Form 10-Q for thequarter ended Sept. 30, 2005 and Form 10-K for the year ended Dec. 31,2005. Forward-looking statements are indicated by words or phrases such as"anticipates," "estimates," "projects," "believes," "intends," "expects,"and similar words and phrases. Actual results may differ materially frommanagement expectations.

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