Exactech Announces Resolution of Government Investigation

Exactech, Inc. EXAC announced today that it has entered into a Deferred Prosecution Agreement with the United States Attorney's Office for the District of New Jersey and a civil Settlement Agreement with the United States. These agreements resolve the investigation commenced by the USAO in December 2007 into the Company's consulting arrangements with orthopaedic surgeons relating to its hip and knee products in the United States. Pursuant to the DPA, an independent monitor will review and evaluate the Company's compliance with its obligations under the DPA. The USAO specifically acknowledges in the DPA that it does not allege that the Company's conduct adversely affected patient health or patient care. Under the DPA, the USAO agrees not to prosecute the Company in connection with the matter if the Company satisfies its obligations during the 12 month term of the DPA. Pursuant to the CSA, the Company will settle civil and administrative claims relating to the matter for a payment of $2,991,889, without any admission by the Company. The Company has also entered into a five (5) year Corporate Integrity Agreement (CIA) with the Office of the Inspector General of the United States Department of Health and Human Services.