Medtronic Settles Litigation with Smiths Medical MD, Inc.

MINNEAPOLIS -- Medtronic, Inc., (NYSE:MDT) announced today that it has reached a settlement with Smiths Medical MD, Inc. Medtronic's lawsuit against Smiths Medical alleged that Smiths Medical willfully infringed Medtronic patents related to its insulin pumps. The U.S. District Court for the

District of Delaware had made several rulings favorable to Medtronic, finding that Smiths Medical's Deltec CozMo insulin pump infringed Medtronic patents and dismissed Smiths Medical's counterclaim. Terms of the settlement were not released but the settlement will not have a material impact on Medtronic's financial results.

"We were pleased with the court's prior rulings and this settlement, which is positive for Medtronic as well as our patients," said Robert Guezuraga, president of Medtronic Diabetes. "This settlement provides an initial payment to Medtronic along with an ongoing revenue stream in the form of royalty payments."

About Medtronic

Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology - alleviating pain, restoring health, and extending life for millions of people around the world.

Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's Annual Report on Form 10-K for the year ended April 29, 2005.