Orthofix International N.V. (NASDAQ: OFIX) (the Company) announced today it has sold the assets of its vascular business, including its AV-Impulse^® mechanical compression technology, to Covidien.

“This transaction represents another important step towards focusing Orthofix on strategic market segments that represent long term growth potential for the Company,” said Orthofix’s CEO Alan Milinazzo. “Additionally, the proceeds from the sale of this business will allow us to further deleverage our balance sheet.”

As part of the sale, Orthofix has agreed to provide transitional services to Covidien for a period of up to five months. Additionally, under the terms of two Supply Agreements, Orthofix will provide Covidien with 2-years’ worth of Impads used in conjunction with the compression therapy devices being sold, as well as with additional products relating to this business for a 90 day period.

Impact on 2010 Financial Results

Orthofix expects the following financial impact as a result of the sale:

• 2010 GAAP EPS guidance increased to $2.24-$2.28
• Revised 2010 revenue guidance = $568-576 million
  • Q1 lower by $2-$3 million
• Net cash proceeds of up to $19 million will be used to reduce outstanding long term debt by approximately 7%; expected reduction in debt/EBITDA ratio* of 13%
• Revised 2010 interest expense = $22-$24 million
• Additional expected impact to GAAP EPS:
  • Q1 GAAP EPS = $0.80-$0.83
    • Includes net gain on sale of up to $0.42
  • Q2-Q4 impact to earnings from the sale of the business and the repayment of debt is expected to be a total net reduction of $0.14-$0.18

*as defined in the amended credit agreement

About Orthofix

Orthofix International, N.V. is a global medical device company offering a broad line of minimally invasive surgical, and non-surgical, products for the spine, orthopedic, and sports medicine market sectors that address the lifelong bone-and-joint health needs of patients of all ages–helping them achieve a more active and mobile lifestyle. Orthofix’s products are widely distributed around the world to orthopedic surgeons and patients via Orthofix’s sales representatives and its subsidiaries, including BREG, Inc. and via partnerships with other leading orthopedic product companies. In addition, Orthofix is collaborates with leading medical institutions such as the Musculoskeletal Transplant Foundation, the Orthopedic Research and Education Foundation, and The University of Medicine and Dentistry of New Jersey. For more information about Orthofix, please visit www.orthofix.com.