Financial Highlights Higher Sales, Higher Profit, Higher Cash Flow (Dollars in millions, except per share amounts) (Percentage growth reflects 2003 over 2002; Dollars in millions except for stock price) Note on Non-GAAP Financial Measures. $^{(1)}$“Adjusted EPS” excludes from reported EPS of $1.64 acquisition and integration expenses of $0.38, inventory step-up of $0.20, in-process research and development write-offs of $0.05, tax benefit thereof $0.21, and cumulative effect of a change in accounting principle of $0.26. $^{(2)}$“Adjusted operating profit” excludes from reported operating profit of $451 million acquisition and integration expenses of $79 million, inventory step-up of $43 million and in-process research and development write-offs of $11 million. $^{(3)}$“Zimmer stand alone” refers to reported sales for the period of $1,901 million less Centerpulse sales of $253 million for the three months ended December 31, 2003. SELECTED FINANCIAL DATA (Reported) (Adjusted) 2003 2002 2003 2002 Sales $ 1,901 $ 1,372 $ 1,901 $ 1,372 Operating Profit $ 451 $ 401 $ 584 (2) $ 401 Earnings Per Share — Diluted $ 1.64 $ 1.31 $ 1.80 (1) $ 1.31 SALES BY GEOGRAPHIC SEGMENT (Reported) 2003 2002 2001 2000 1999 Americas $ 1,208 $ 933 $ 791 $ 655 $ 588 Europe $ 366 $ 170 $ 133 $ 121 $ 116 Asia Pacific $ 327 $ 269 $ 255 $ 265 $ 235 Consolidated $ 1,901 $ 1,372 $ 1,179 $ 1,041 $ 939 SALES BY PRODUCT CATEGORY (Reported) 2003 2002 2001 2000 1999 Reconstructive $ 1,521 $ 1,061 $ 887 $ 765 $ 679 Trauma $ 151 $ 134 $ 128 $ 123 $ 113 Spine $ 34 — — — — Orthopaedic Surgical Products $ 195 $ 177 $ 164 $ 153 $ 147 Consolidated $ 1,901 $ 1,372 $ 1,179 $ 1,041 $ 939 SALES OPERATING PROFIT OPERATING CASH FLOW STOCK PRICE 1179 1041 939 1372 1901 1648 99 00 01 02 03 + 39%  + 20%  Zimmer  stand alone (3) Reported + 125%  Reported 99 00 01 02 03 172 232 180 220 495 + 70%  $70.40 $41.52 $30.54 $28.50 ’01 2002 2003 $28.50 AUGUST 7 , 2001 + 46%  + 12%  Adjusted (2) Reported 99 00 01 02 03 318 268 231 401 451 584 3