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News Release

Medtronic Reports Second Quarter Revenue of $3.124 Billion and Diluted EPS of $0.58

• Double Digit Revenue Growth Outside the U.S.
• Voluntary Suspension of Fidelis® Lead Significantly Impacted Quarterly Results

MINNEAPOLIS – November 19, 2007 – Medtronic, Inc. (NYSE:MDT) today announced financial results for its second quarter of fiscal year 2008, which ended October 26, 2007.

Medtronic recorded second quarter revenue of $3.124 billion, a two percent increase over the $3.075 billion reported in the second quarter of fiscal year 2007. Non-U.S. revenue of $1.166 billion grew 12 percent including the $73 million positive benefit of currency translation. For the quarter, 37 percent of Medtronic’s revenue was from outside the U.S. Net earnings for the quarter were $666 million, or $0.58 per diluted share, each a two percent decrease over the same period in the prior year.

Commenting on the voluntary suspension of Fidelis® leads and its negative impact to the business this quarter, Bill Hawkins, Medtronic president and chief executive officer said, “This was the right decision as there is nothing more important to us than the safety and well being of patients.”

Unless otherwise noted, all comparisons made in this news release are on an “as reported basis,” not on a constant currency basis, and references to quarterly figures increasing or decreasing are in comparison to the second quarter of fiscal year 2007.

Cardiac Rhythm Disease Management
Cardiac Rhythm Disease Management (CRDM) revenue of $1.148 billion decreased 8 percent. Revenue from implantable cardioverter defibrillators (ICDs) was $639 million, down 16 percent, while worldwide pacing revenue of $495 million in the quarter increased 5 percent. The Fidelis defibrillator lead recall had an estimated negative impact of $115 million and $15 million on ICD and Pacing revenue, respectively. Additionally, CRDM incurred expenses of approximately $31 million in inventory write-offs and other direct costs associated with Fidelis during the quarter.

Spinal
Spinal revenue of $660 million grew 10 percent, driven by sales of the biologics product line and strong growth outside the U.S. With the acquisition completed earlier than anticipated, the company expects Kyphon will contribute to revenue in the second half of the fiscal year as Medtronic expands its presence in the aging spine market.

CardioVascular
CardioVascular revenue of $490 million grew 8 percent, driven by Coronary Stents and Endovascular. Coronary Stent revenue of $149 million grew 13 percent and Endovascular revenue grew 11 percent. Final FDA approval for the Endeavor® drug-eluting stent is anticipated by the end of the calendar year, providing Medtronic entry into this approximately $2 billion U.S. market.

Neuromodulation
Neuromodulation revenue of $321 million grew 10 percent. Adjusting for the impact of the previously announced divestitures of the three diagnostics related product lines, the Neuromodulation business grew 15 percent.

Diabetes
Diabetes revenue of $246 million grew 16 percent, driven by double digit growth in pump therapies and a robust uptake in continuous glucose monitoring products.

Ear, Nose and Throat (ENT)
ENT revenue of $149 million grew 16 percent, driven by power systems and monitoring disposables along with further global penetration of the product portfolio.

Physio-Control
Physio-Control revenue of $74 million was down 33 percent, due to the voluntary suspension of U.S. product shipments to address quality system issues.

In closing Hawkins said, “While we are very focused on addressing the challenges in our CRDM business, we are pleased with a number of highlights in our second quarter including the positive FDA panel recommendation of our Endeavor drug-eluting stent, continued progress with our Prestige® Cervical Disc launch, and improved momentum in our neuromodulation business. With our broad diversified business portfolio and the opportunity to accelerate growth outside the U.S., we remain optimistic about our strong growth potential going forward.”

Webcast Information
Medtronic will host a webcast for the public, analysts and news media today, Nov. 19 at 4:30 p.m. EST (3:30 CST), to provide information about its businesses, quarterly financial results and analysts’ expectations for fiscal 2008 results. This quarterly webcast can be accessed by clicking on the Investor Relations link on the Medtronic home page at www.medtronic.com and this earnings release will be archived at www.medtronic.com/newsroom. Within 24 hours, a replay of the webcast and a transcript of the company’s prepared remarks will be available in the “Presentations & Transcripts” section of the Investor Relations homepage.

About Medtronic
Medtronic, Inc., headquartered in Minneapolis, is the world’s leading medical technology company, alleviating pain, restoring health and extending life for people with chronic disease. Its Internet address is www.medtronic.com.

This news release contains forward-looking statements regarding our operating momentum, new products and other developments, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, integration of acquired businesses, government regulation, general economic conditions and other risk and uncertainties described in Medtronic’s Annual Report on Form 10-K for the year ended April 27, 2007. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements.

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