Moody's and S&P Improve Ratings Outlook for Orthofix International

November 19, 2009

BOSTON, Nov 19, 2009 (BUSINESS WIRE) -- Orthofix International N.V. (NASDAQ: OFIX) (the Company) announced today that both Standard & Poor's Rating Services and Moody's Investor Services have improved their outlooks for the Company from negative to stable.

Moody's Investor Services revised its outlook yesterday, citing "improvement in the spine implant business, which has contributed to margin expansion and improved free cash flow." Additionally, Moody's improved outlook was based on "improved credit metrics and an improved liquidity profile, including an increased cushion under the financial covenants" which it attributed to several voluntary loan prepayments the Company has made prior to their scheduled maturities. Moody's also acknowledged Orthofix's "relatively smooth transition to its next generation biologics product, Trinity(R) Evolution(TM), as well as the continued positive operating performance of the orthopedic and sports medicine businesses."

Earlier this month Standard & Poor's Rating Service also revised its outlook, noting "recent improvements in the company's operating performance and debt reduction." Standard & Poor's attributed the Company's improved performance to "a reorganization that better focused its distribution and the launch of new products, such as a pedicle screw system, interbody device, and stem cell-based allograft; as well as the ongoing growth of its spine stimulation revenues." The rating service also alluded to Orthofix's diverse revenue stream, describing the Company's product and customer diversity as strengths.

"We are very pleased that S&P and Moody's have both recognized the progress we have made in improving our financial outlook over the last several quarters. Our focus will continue to be on improved operating results and cash flow, as well as the continued deleveraging of our balance sheet," said Orthofix's President and CEO, Alan Milinazzo. "Our recent improvements are, in part, a reflection the successful introduction of several new products that have been well received by our surgeon customers."

Last month Orthofix released its 3rd quarter results, which included year-over-year improvements in its gross and operating profit margins as well as a significant increase in cash flow from operations. As a result of the improved cash flow, this month the Company made an additional $5 million debt repayment ahead of its scheduled maturity, and has repaid a total of $25 million ahead of scheduled maturities year-to-date.

About Orthofix

Orthofix International, N.V. is a global medical device company offering a broad line of minimally invasive surgical, and non-surgical, products for the spine, orthopedic, and sports medicine 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 and its subsidiaries, including BREG, Inc. and via partnerships with other leading orthopedic product companies. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Musculoskeletal Transplant Foundation, the Orthopedic Research and Education Foundation, the University of Medicine and Dentistry of New Jersey and the National Osteoporosis Institute. For more information about Orthofix, please visit


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 its subsidiaries 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.

Factors that could cause or contribute to such differences may include, but are not limited to, risks relating to the expected sales of its products, including products not yet launched, unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, risks relating to the protection of intellectual property, changes to the reimbursement policies of third parties, changes to and interpretation of 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, corporate development and market development activities, including acquisitions or divestitures, unexpected costs or operating unit performance related to recent acquisitions and other factors described in our annual report on Form 10-K and other periodic reports filed by the Company with the Securities and Exchange Commission.

SOURCE: Orthofix International, N.V.

Orthofix International, N.V.
Dan Yarbrough, 617-912-2903
Vice President of Investor Relations

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