Tyco Healthcare's Valleylab Acquires Vivant Medical

BOULDER, Colorado – July 6, 2005 – Valleylab, a division of Tyco’s Healthcare and the market leader in the innovation and production of advanced energy-based medical systems, yesterday announced the acquisition of Vivant Medical, Inc., developer of the anticipated first-to-market microwave ablation medical technology, the VivaWave™ Microwave Ablation System. The transaction is valued at approximately $66 million cash at close, with up to approximately $35 million additional to be paid in the future based on achieving certain milestones.

Valleylab, a leader in ablative therapy products, currently markets the Cool-tip™ radiofrequency technology. The VivaWave™ Microwave Ablation System, indicated for soft tissue treatment, was developed to achieve more predictable procedure times, with greater accuracy and increased patient safety. The technology has been in successful clinical applications since late 2004 and the company expects a commercial launch of the product soon. The acquisition of the VivaWave™ Microwave Ablation System will allow Valleylab to offer both RF and microwave treatments that utilize this optimal technology.

“This partnership addresses a tremendous unmet clinical need in the global marketplace,” said Scott Drake, President of Valleylab. “The combination of Valleylab and Vivant Medical offers interventional radiologists, surgeons and cancer patients worldwide the most comprehensive portfolio of technology and therapies to improve clinical outcomes.”

“We are excited that Valleylab will be the company to move our innovations to market,” said Rod Young, CEO of Vivant Medical. “With their existing infrastructure and strong commitment to provide energy-based solutions for clinical challenges, Valleylab will take our ablative technologies to the next level.”

Valleylab is developing an in-house Oncology Solutions team to focus on this specific initiative. Steven Kim, who led the development of the microwave technology, will serve as General Manager of Vivant Medical. The Boards of Directors of both companies have approved the transaction.

About Tyco Healthcare and Valleylab

As a major business segment of Tyco International Ltd., Tyco Healthcare manufactures, distributes and services an extensive product line including disposable medical supplies, monitoring equipment, innovative wound closure products, advanced surgical devices, medical instruments and bulk analgesic pharmaceuticals. With industry-leading brand names such as Valleylab, Autosuture, Kendall, Mallinckrodt, Nellcor, Puritan Bennett, and Syneture, Tyco Healthcare products are found in virtually every healthcare setting.

Tyco Healthcare’s Valleylab division offers a complete line of energy-based medical systems, including electrosurgical generators, accessories, and disposable products, the LigaSure™ vessel sealing system, patient return electrodes, argon-enhanced electrosurgery systems, laparoscopic instruments, Cool-tip™ RF ablation systems, and smoke evacuation devices.

Forward Looking Information

This release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. The forward-looking statements in this release include statements addressing the following subjects: future financial condition and operating results. Economic, business, competitive and/or regulatory factors affecting Tyco's businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward-looking statements. Tyco is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about these and other factors is set forth in Tyco's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2004, and Quarterly Report on Form 10-Q for the quarterly period ended April 1, 2005.