aap Implantate AG signs sales agreement with Exactech

Berlin, September 27, 2000. The Berlin-based aap Implantate AG, a company in the field of biomedical engineering, listed on the Neuer Markt segment of the Frankfurt stock market and aap Implants Inc., the company's U.S. subsidiary, has signed an agreement with the Nasdaq-listed Exactech Inc. for the exclusive distribution rights to aap Implantate products in the United States.

Gainesville, Florida, based Exactech Inc. develops and markets orthopaedic implants and instruments for knees and hips, plus biological implants and the corresponding equipment. Turnover in 1999 totalled US$ 33 million. Exactech currently serves the U.S. market with a field sales staff of 146. The company contracts with independent sales agents to market its products in the United States and in 13 countries in Europe, Asia, Australia and Latin America.

For aap Implantate AG this sales cooperation covers the entire U.S. market. In future, aap fracture healing products will be sold in the U.S. exclusively by Exactech. They include the APS system for healing femoral neck fractures, the innovative cannulated screw system for standard osteosynthesis and the Biorigid Nail Tibia system for regenerating fractures of the lower leg.

aap expects this sales cooperation to lead to a substantially faster market penetration in view of Exactech's large field sales organization and to significant product synergy. Exactech's endoprosthetics line is seen by aap's management as a "superb" match for aap trauma products. Moreover, aap's own marketing strategy, according to its management, can be controlled more effectively with such an exclusive U.S. sales partner. Already in the course of this year aap expects a significant increase in turnover on the U.S. market by means of this sales cooperation.

All existing sales agreements for the U.S. market were terminated in good time.