ZIMMER AT A GLANCE Company Profile Zimmer Holdings, Inc. (NYSE and SWX: ZMH) is the worldwide #1 pure-play orthopaedic leader in the design, development, manufacture, and marketing of reconstructive and spinal implants, trauma, and related orthopaedic surgical products.  In October, 2003, the company finalized its acquisition of Centerpulse AG, a Switzerland-based orthopaedics company and the leader in the European reconstructive market. Zimmer now has operations in more than 24 countries around the world and sells products in more than 80 countries. Including the acquisition of Centerpulse on October 2, 2003, reported 2003 sales were $1.9 billion. Full-year 2003  pro forma worldwide sales of Zimmer and Centerpulse were approximately $2.6 billion. The new Zimmer is supported by the efforts of more than 6,500 employees. Orthopaedic reconstructive implants restore function lost due to disease  or trauma in joints such as knees, hips, shoulders, and elbows. Details on these products are provided on pages 10-11. Zimmer ranked #1 in the global  knee implant market with reported  2003 sales of $801 million. * Zimmer ranked #1 in the global hip implant market with reported 2003 sales of $646 million. * Zimmer Dental products include implants, prosthetic attachments, and regenerative products, bone grafting materials and collagen-based wound- healing products, used for the restora- tion of teeth. The  Tapered Screw-Vent ® implant is designed for greater stabil- ity, decreased surgical time, and better appearance.  Puros TM is a mineralized bone allograft material with a high level of purity to promote rapid healing, to stimulate natural bone growth, and to reduce the likelihood of rejection. Zimmer ranked #4 in the global dental implant market with reported 2003 sales of $30 million.* Spinal implant products are devices used primarily to treat degenerative lumbar diseases or other instabilities  Trauma products are devices used  primarily to reattach or stabilize  damaged bone and tissue to support the body’s natural healing process. Zimmer provides diversity of care for patients’ unique physical characteris- tics and trauma conditions by offering surgeons innovative products and treatment options. In the  Zimmer ® Periarticular Plating System, fracture fixation plates are precontoured for accurate fit in a wide range of anatom- ical locations. The  TransFx External Fixation System, acquired in 2003, includes sizes capable of treating  any fracture where external fixation  is utilized. Zimmer offers alternative nail designs and materials in the  stainless steel  M/DN ® Intramedullary Fixation System, and the titanium Sirus ® System. The  ITST TM Intertrochanteric/Subtrochanteric Fixation System permits less invasive fixation of femoral fractures. Zimmer ranked #4 in the global trauma products market with reported 2003 sales of $151 million. * of the lumbar and the cervical spine with instrumented surgical stabiliza- tion or fusion. Zimmer Spine offers surgeons a full range of spinal implants and instru- mentation to treat disc degeneration, injury, trauma, and deformity. Zimmer’s interbody fusion cage for the lumbar and cervical areas of the spine is con- sidered the industry gold standard. Zimmer ranked #5 in the global spinal implant market with reported 2003 sales of $34 million. * This business unit covers the manufac- turing and marketing of other products used by surgeons for orthopaedic and general surgery procedures. Products include the  OrthoPAT $^{®}$** Orthopedic Perioperative Autotransfusion System to collect and reinfuse a patient’s own blood during and after a surgical procedure;  A.T.S. ® Tourniquets, the market leader in surgi- cal tourniquet systems; and  Pulsavac ® Wound Debridement Products for the surgical excision of tissue and foreign matter from wounds. In 2003, Zimmer introduced  Orth-O’Rad $^{TM}$† Surgical Gloves to protect the hands of operat- ing room personnel from radiation  during fluoroscopic procedures. Zimmer is developing biological solutions to repair and regenerate damaged or degenerated tissues. These could potentially transform treatment of damaged joints by  biological regeneration rather than replacement with inert materials. Zimmer  Ortho Guidance TM Systems — Zimmer is developing computer-aided surgery navigation for  MIS Techniques in an exclusive partnership with Medtronic on  minimally invasive orthopaedic applications for image guidance systems. Metasul ® Metal-on-Metal Technology — This technology  for hip implants has a metal inlay inside the polyethylene insert  to provide highly wear resistant metal-on-metal articulation. — This highly porous structure application to primary and revision procedures is used with an expanded range of implants that allow for bone growth. Highly Crosslinked Polyethylene — This synthetic material provides wear characteris- tics significantly better than those of standard polyethylene. Highly Crosslinked Polyethylene, under  our  Longevity and  Durasul brands, has become Zimmer’s most popular articulating surface. Procedures and Technologies — Zimmer has developed procedures and instrumentation that make  it possible for surgeons to use  MIS Techniques with a number  of its knee and hip implants, and  plans to develop implants in the future specifically for  MIS procedures. RECONSTRUCTIVE TRAUMA DENTAL ORTHOPAEDIC SURGICAL PRODUCTS Trabecular Metal Technology Minimally Invasive Solutions TECHNOLOGIES Zimmer Orthobiologics — SPINE PRODUCT CATEGORIES 2003 SALES 2002 SALES OSP Reconstructive Trauma Spine 10 % 80 % 8 % 2 %  OSP Reconstructive Trauma 13 % 77 % 10 % *Estimates from Wall Street Research and Zimmer, based on publicly reported sales. Note that sales from Centerpulse have been included only in the fourth quarter. ** OrthoPAT is a trademark of Haemonetics Corporation. †Orth-O’Rad is a trademark of The Branford Companies, Inc. 12