2009 Health Care Forecast Conference

Mike MussallemChairman and CEO, Edwards Lifesciences

Chairman of the Board, AdvaMed

2009 Health Care Forecast Conference

Mike MussallemChairman and CEO, Edwards Lifesciences

Chairman of the Board, AdvaMed

Edwards LifesciencesEdwards Lifesciences

Founded by Miles “Lowell” Edwards in 1958­ Inventor and visionary, held 60+ patents

Partnered with physicians to introduce breakthrough medical devices to the world­ Albert Starr, Jeremy Swan, William Ganz, Thomas Fogarty,

Alain Carpentier, Delos Cosgrove, Alain Cribier

Lineage­ 1958 Edwards Laboratories­ 1968 American Hospital Supply Corp.­ 1984 Baxter International Inc.­ 2000 Edwards Lifesciences (NYSE:EW)

Cardiac Surgery Systems Cardiac Surgery Systems

Heart Valve TherapyHeart Valve Therapy

VascularVascular

Sales by Sales by BusinessBusiness

Critical CareCritical Care

Edwards’ BusinessesEdwards’ Businesses

47%47%

36%36%

8%8%5%5%

Hemodynamic MonitoringSepsis Management

Access Products

Minimally-Invasive InstrumentsCannulae

Embolic Protection Clot Management Systems

Surgical Accessories

Surgical Replacement & RepairTranscatheter Replacement

Advanced Medical Technology Association (AdvaMed)Advanced Medical Technology Association (AdvaMed)

World’s largest medical technology association­ 1,600+ member companies and subsidiaries

Members produce 90% of sales in domestic market, 50% of sales in global market

70%+ of member companies have <200 employees

Medical Device Industry – Different Than Other Health SectorsMedical Device Industry – Different Than Other Health Sectors

Companies rely on physician experience, feedback to develop better treatments

Device effectiveness depends on physician skill - product training is critical

Physician contribution/feedback plays a vital role in continued innovation

Collaboration benefits patients

Industry ChallengesIndustry Challenges

Global economic climate Global economic climate

ReimbursementReimbursement

Patient and patent lawsuitsPatient and patent lawsuits

New leadership – Congress, HHS, FDA, etc.

Comparative effectiveness research

Greater transparency of clinician / industry

relationships

It’s the PatientIt’s the Patient

Helping Patients is Our Life’s Work, andHelping Patients is Our Life’s Work, and