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06 Jul 2004 | Press Release

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Henry Schein Enters Growing Dental Implant Category Through Strategic Partnership with Camlog

Mergers and Acquisitions

Henry Schein, Inc., the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets, today announced that it has entered into the dental implant market through a strategic partnership with Camlog Holding AG, a manufacturer and marketer of innovative dental implants used in tooth replacement.

The new partnership provides Henry Schein entree into the rapidly growing dental implant category. Camlog, based in Basel, Switzerland, recorded 2003 sales of over EUR 25 million euros, with the majority of those sales to customers in Germany. Camlog also serves customers in a number of other countries, including Japan, Austria, Italy and Hungary. Under the agreement, Henry Schein will hold a majority equity position in Camlog, and focus on building the market position of the Camlog product line in the United States. Henry Schein will market and distribute Camlog products in the United States through a specialized sales force.

The advantages of the Camlog implant system include appearance, stability, precision engineering, superior prosthetics and system simplicity. Dr. Axel Kirsch, a world-renowned lecturer on implant dentistry, implant surgery and preprosthetic surgery, designed the Camlog system and founded the company in 1998.

"This strategically important step for Henry Schein is a natural product line extension for our global dental business. We could not have entered into the implant market with a more innovative partner than Camlog," said James P. Breslawski, President of Sullivan-Schein, the U.S Dental division of Henry Schein, Inc. "For decades, Dr. Kirsch has been one of the world's foremost authorities on dental implants, as has Jurg Eichenberger, Camlog's Chief Executive Officer, who has more than 25 years of experience as a successful business manager, with the last 10 years in the management of research and development, manufacturing, sales and marketing, and distribution of implant products. In addition, the advantages that Camlog's products deliver are widely recognized. We view the dental implant category as becoming increasingly important in the dental market, and are delighted to be entering this market in such a meaningful way."

The current market for dental implants is estimated to be more than $1 billion globally and over $400 million in the United States, with the category expected to grow at 10 to 15 percent annually. In 2003, more than 700,000 dental implant procedures were estimated to have been performed by oral surgeons and other dental professionals in the United States and more than 1.3 million procedures in Europe.

"We at Camlog are pleased to have found in Henry Schein a partner that believes as strongly in the potential of dental implants as we do," said Mr. Eichenberger. "Henry Schein's appreciation for and understanding of the technology that we bring to market is clearly evident, and the Company's ability to introduce innovative dental products to its customers is well documented. We look forward to working with Henry Schein as a fully-involved partner in the future of Camlog."

About dental implants

With dental implants, a small metal post serves as a substitute for a natural tooth root. Inserted surgically into the jawbone, it provides a stable base upon which an artificial tooth can be anchored. Dental implants offer a number of benefits over less stable solutions, such as bridges and dentures. Aesthetically, implants are difficult to distinguish from real teeth. For healthy patients, studies indicate a 90 to 98 percent success rate for dental implant surgery, with implants often lasting the life of the patient.

An aging population with increasing wealth should drive dental implant surgery in the future. Over the next 10 years, the number of people aged 50 and above in developed countries is expected to increase by over 60 million, to a total of 452 million. This segment also will be spurred by the enhancement of implant technologies, including accelerated healing times and more refined implant designs. Additionally, increasing patient awareness of implant solutions, the procedure's success rate, and increasing simplicity of treatment should drive growth.

About Henry Schein, Inc.

Henry Schein, a Fortune 500(R) company, is recognized for its excellent customer service and highly competitive prices. The Company's four business groups--Dental, Medical, International and Technology--serve more than 450,000 customers worldwide, including dental practices and laboratories, physician practices and veterinary clinics, as well as government and other institutions. The Company's sales reached a record $3.4 billion in 2003.

The Company operates through a centralized and automated distribution network, which provides customers in more than 125 countries with a comprehensive selection of over 90,000 national and Henry Schein private-brand products.

Henry Schein also offers a wide range of innovative value-added practice solutions, including such leading practice management software systems as DENTRIX(R) and Easy Dental(R) for dental practices, and AVImark(R) for veterinary clinics, which are installed in over 50,000 practices; and ArubA(R), Henry Schein's electronic catalog and ordering system.

Headquartered in Melville, N.Y., Henry Schein employs over 9,000 people in 18 countries.

Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involved in the Company's business. These forward-looking statements are qualified in their entirety by the cautionary statements contained in the Company's Securities and Exchange Commission filings.

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