Press Release June 28, 2006

Smith & Nephew and Q-MED Enter Into Strategic Alliance

BOSTON, June 28, 2006 — Smith & Nephew Orthopaedics Trauma & Clinical Therapies and Q-MED AB announced that they have formed a strategic alliance to develop and commercialize Q-MED's proprietary technology for the production of stabilized non-animal hyaluronic acid, NASHA™ for orthopedic uses. The two companies have entered into a licensing and supply agreement under which Q-MED AB has granted Smith & Nephew Inc. the global exclusive right to market, sell and distribute DUROLANE and other products intended for the management of orthopedic conditions and diseases.

A Goodwin Procter team, led by Joel Wagman and comprised of Marta Gross, Dan Glosband, Lindsay Repose and Ann-Marie Koss, assisted internal counsel at Smith & Nephew, Inc. in this matter.