ZIMMER HOLDINGS, INC. AND SUBSIDIARIES 2003 FORM 10-K Hip Implants cover the full spectrum of patient bone types and sizes with a single set of easy-to-use instruments. The comprehensive Natural-Hip  Prosthesis Solution product line offers a variety of stem options to address high, medium, and low demand patients, as well as revision and other special patient needs. Alloclassic ˛  ( Zweymueller $^{TM}$) Hip Prosthesis. The Alloclassic (Zweymueller)  Hip Prosthesis has become the most used, primary, cementless hip in the world. This is one of the few stems available today that is practically unchanged since its introduction in 1979. There have been only a few modifications over the years to address demands of patients and surgeons. The Company believes that this product’s technically simple application, outstanding short and long- term stability, and excellent clinical results will continue to make it desirable to surgeons. ZMR ˛  and  Revitan ˛  Revision Hip Systems. The ZMR  Revision Hip System, introduced in 2000 to address the porous modular revision market, and the  Revitan  Revision Hip System, provide the versatility to accommodate varying fixation and sizing needs. The line extension to the  ZMR brand of over 90 additional implant options creating over 10,800 possible combinations will enable surgeons to further address the difficult and varying needs of their revision patients. Building on the  ZMR  and  Revitan  Revision Hip Systems, the launch of revision acetabular components positions the Company to provide a comprehensive approach to revision hip surgery that matches its approach to revision knee surgery. Specialty Hips.  To complement the broad capabilities of the above hip brands, the Company offers a number of specialty hip products tailored to the needs of specific patient populations and geographic regions. The  Mayo Conservative Hip Prosthesis ˛ $^{2}$, a novel, short- stemmed, porous femoral implant, was developed for minimal bone removal. The  CPT ˛  Hip System, the cemented hip brand designed for both primary and revision procedures, was tailored for countries with a historical preference towards collarless, polished, tapered products and a subsidence surgical philosophy. A key line extension to the CPT  brand was launched in late 2002 and was instrumental to the growth of this cemented stem line in 2003. This implant system has a long and successful clinical record and is important to growth in key markets such as Europe. In addition to Community European (‘‘CE’’) Mark approval in 2000, the Company received regulatory approval in the United States in 2002 for the  Epoch ˛  Hip Prosthesis product line, which is comprised, in part, of a unique composite design that allows the normal amount of anatomical stress to be placed on patients’ bones while still potentially providing extensive fixation and reduced thigh pain. The Company also launched the  Zimmer  M/L Taper Hip Stem System in 2003 that expands Zimmer’s portfolio of cementless tapered stems, which is a rapidly growing segment in the primary stem market. 7 $^{2}$Trademark of Mayo Foundation For Medical Education and Research The  Natural-Hip $^{TM}$ Prosthesis Solution. The Natural-Hip  Prosthesis Solution combines the surgical simplicity of a straight stem with many of the best features of an anatomic stem. The  Natural-Hip  system’s innovative design approach provides optimal cortical loading and bone remodeling without sacrificing ease of implantation. A complete system of porous-coated and nonporous stems VerSys ˛  Hip System. The  VerSys  Hip System, a Zimmer flagship brand, is supported by a common instrumentation set and is an innovative, integrated family of hip products that offers surgeons design-specific options to meet varying surgical philosophies and patient needs. The VerSys  Hip System includes the following features: a variety of stem designs and fixation options for both primary and revision situations, a modular design that allows for a variety of femoral heads, optimal sizing selections, and a common instrumentation set for use with virtually all  VerSys  stems. In addition, the flexibility of the  VerSys  stem platform allows for the incorporation of technological developments, with the planned introduction of approximately 340 new stems, 139 of which were launched in 2003. The Company’s  MI S  2-Incision $^{TM}$ Hip Replacement Procedure uses two small incisions, each approximately one and one-half to two inches in length. Standard implants are used in the procedure. The incision for a traditional open hip replacement is as much as 12 inches long. Other less invasive approaches, such as a ‘‘mini’’ incision for hips, have been in existence for approximately five years. In January 2004, the first computer image-guided  MIS 2-Incision  live surgery was performed utilizing new technology and instrumentation co- developed by the Company and its  MIS  computer navigation partner, Medtronic. In February 2004, the United States Patent and Trademark Office granted the Company a patent specific to the Company’s  MIS 2-Incision  Hip Replacement Procedure, and such patent includes 17 approved claims related to the procedure. The Company’s hip replacement products include, among others: Total hip replacement surgeries replace both the head of the femur and the socket portion of the pelvis (acetabulum) of the natural hip and include first time joint replacement procedures and revision procedures for the replacement, repair or enhancement of an implant product or component from a previous procedure. The femur is the long bone between the pelvis and the knee. The acetabulum is the cup-shaped portion of the pelvis. Historically, most hip implant procedures have involved the use of bone cement to attach the prosthetic components to the surrounding bone. Today, many femoral and acetabulum cup replacement components are porous, which means they do not require bone cement because bone can actually grow into, and onto, the implant surface. product. Most knee articulating surfaces only receive the more general ‘‘resistance to wear’’ claim that does not specifically address the primary mode of failure in knees, which is sub-surface fatigue.