ARTHROCARE SETTLES WITH SMITH & NEPHEW

ArthroCare Corp., a maker of medical devices used in soft tissue surgery, said Wednesday it has settled all legal disputes with Smith & Nephew PLC by signing product supply and license agreements with British medical products maker. The company also forecast 2006 earnings in a range wider than Wall Street's average view as a result of the deals. Under the product supply deal, ArthoCare will make bipolar and monopolar arthroscopy products for sale by Smith & Nephew. In the licensing pact, ArthroCare said it would receive royalties for bipolar products sold domestically by Smith & Nephew, and for bipolar shaver products sold by Smith & Nephew worldwide. The company also said it was granted a license for the global sale of spine products.

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