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News Release

Medtronic Board Increases Cash Dividend and Approves Share Repurchase Plan

MINNEAPOLIS – June 18, 2009 – The board of directors of Medtronic, Inc. (NYSE: MDT) today approved a 9 percent increase in its cash dividend for fiscal year 2010, raising the quarterly amount to 20.5 cents per share of the company’s common stock, for an annual amount of 82 cents per share. In addition, the board approved an increase in its Share Repurchase Plan, authorizing Medtronic to purchase an additional 60 million shares of its common stock, representing approximately 5.4 percent of the company's total basic shares of common stock outstanding during the quarterly period ending April 24, 2009.

“Today’s actions demonstrate both the board of directors’ and management’s strong confidence in the long-term strength of the company’s cash flow generation and continued commitment to returning capital to shareholders,” said Bill Hawkins, chairman and CEO. “Our on-going commitment to return a minimum of 40 to 50 percent of our free cash flow to shareholders each year allows us to offer Medtronic investors enhanced returns through dividend increases and ongoing share repurchases, while also making disciplined, strategic investments for sustainable earnings growth.”

In fiscal year 2009, Medtronic continued its track-record of strong financial results, generating $3.9 billion in operating cash flow, of which $1.6 billion was returned to shareholders in the form of dividends and share repurchases. Today’s increase marks the 23rd consecutive year of increased dividend payments and 33 years of uninterrupted dividend payments. In the past four years, Medtronic’s dividend has more than doubled and the company has repurchased $6.9 billion of common stock, or 138 million shares.

The dividend is payable on July 31, 2009, to shareholders of record at the close of business on July 10, 2009. Under its repurchase plan, Medtronic may make purchases from time to time through the open market.

About Medtronic
Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology – alleviating pain, restoring health, and extending life for millions of people around the world.

This press release contains forward-looking statements 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, government regulation, general economic conditions and other risks and uncertainties described in Medtronic’s Annual Report on Form 10-K for the fiscal year ended April 25, 2008. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements.

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