Stryker (SYK) Reaches Settlement in MA; Sees FY11 EPS at the Low End of Range

Stryker Corporation (NYSE: SYK) announced today that Stryker Biotech has reached a settlement with the U.S. Attorney's Office for the District of Massachusetts. As part of the settlement, Stryker has agreed to plead to one misdemeanor charge and pay a non-tax deductible fine of $15 million. As a result of this resolution, the Department of Justice has agreed to dismiss all thirteen felony charges against Stryker Biotech contained in a 2009 federal grand jury indictment.

From a financial standpoint, the settlement represents a Type I subsequent
event as defined in the Subsequent Events topic of the FASB Codification and accordingly, the incremental charge to earnings of approximately $0.03 per diluted share will be recorded in the Company's fourth quarter 2011 results.
As a result of the settlement which was not factored into previously announced guidance, Stryker now expects to report 2011 adjusted diluted net earnings per share at the low end of its current range of $3.72 to $3.74, an increase of 12% over adjusted diluted net earnings per share of $3.33 in the prior year and at the high end of the adjusted diluted net earnings per share range stated at the start of 2011 of $3.65 to $3.73.

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