Investec Inc. Announces Investment Opinion: Investec Initiates Coverage of Wright Medical Group, Inc. and LifeCell Corp

Business Wire, Sept 25, 2002

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Investec Inc.

NEW YORK--(BUSINESS WIRE)--Sept. 25, 2002

Orthopedics and Related Biomaterials are Top Performing Sectors

in Medicine Today

Robin R. Young, CFA and John J. Chopack, Jr., Life Sciences Research Analysts at Investec Inc., have initiated coverage on Wright Medical Group, Inc. and LifeCell Corp.

"We believe that orthopedics is emerging as a premier growth sector in medical devices and that new technologies and favorable demographics will be the forces moving this sector forward," Young said. "In an industry that grew 13% in 2001, and from all indications will continue to post double-digit revenue growth for the foreseeable future, we believe that Wright Medical Group and LifeCell will be among the prime beneficiaries of a resurging orthopedic industry."

Wright Medical Group, Inc. (WMGI - HOLD - $18.10). We are initiating coverage of WMGI with a HOLD rating, as we believe the company is fully valued at this time. With WMGI's stock at 45.2x 2002 estimated EPS of $0.42, it is 33% above the orthopedic industry average of 34.1x 2002 EPS and fully values the company's expected earning growth rate.

LifeCell Corp. (LIFC - STRONG BUY - $1.72). We believe LifeCell's 15-20% annual growth rate, profitability, and attractive valuation support our 12-month price target of $3.50 and a STRONG BUY recommendation for investors accustomed to similar liquidity risk. At 19.1x our CY03 EPS estimate of $0.09, LIFC's current price doesn't reflect the company's inherent value or growth potential.

The company has a growing list of major corporate partners and is tissue engineering's first successful business model. Solid revenue growth and rising operating efficiencies are fueling both strong earnings and cash flows for the company.

Investec Analysts Young and Chopack closely follow leading medical technology companies with an emphasis on those that pioneer the use of biomaterials, facilitate least invasive surgical techniques and significantly improve diagnostic accuracy.

Investec maintains a STRONG BUY recommendation on Orthofix International (OFIX - $25.10) and BUY ratings on Interpore Cross International, Inc. (BONZ - $7.00) and Regeneration Technologies (RTIX -$7.03).

Investec Inc. makes a market in the shares of: BONZ, LIFC, OFIX, RTIX, and WMGI.

Editor's note: Interviews are available upon request.

About Investec Group

The Investec Group (JSE Securities Exchange: INT) is an international specialist-banking group which provides a wide range of specialized products and services to a select client base in 15 countries worldwide. The Group is organized in four principal businesses: investment banking, treasury and finance activities, private client activities and asset management.

Investec Group employs over 5,000 individuals worldwide. It is one of the Top 25 largest companies listed on the Johannesburg Stock Exchange and ranks among the world's top 350 banks with total assets under management exceeding $70 billion.

About Investec Inc.

Investec Inc. is the United States investment banking arm of Investec Group. The firm is a full service, research-oriented investment bank focusing on companies in the technology, healthcare, and consumer products industries.

Investec provides a full range of investment banking services, including public and private equity financings, private placements, mergers and acquisitions, and financial advisory services. Clients also benefit from its wealth management and asset management services.

This communication is neither an offer to sell nor a solicitation of an offer to buy any securities mentioned herein. The information contained herein has been obtained from sources that we believe to be reliable but we do not guarantee its accuracy or completeness. Investec Inc. and/or its affiliates may have a position in the securities described herein. Available information supporting this recommendation will be furnished upon request. This report is not directed to, nor intended for distribution to or use by, any person or entity who is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Investec Inc. or its affiliates to any registration or licensing requirement within such jurisdiction. Investec may seek to provide investment banking services for the companies mentioned herein. As is the case with all employees, analyst's compensation is impacted by overall firm profitability, including revenues from Retail Sales, Institutional Sales and Investment Banking. Note that analyst compensation is determined based upon services intended to benefit the investor clients of Investec Inc. and its related companies. Investec Inc. and/or its affiliates usually make a market in BONZ, LIFC, OFIX, RTIX, and WMGI. Investec Inc. and or its employees may sell or buy BONZ, LIFC, OFIX, RTIX, and WMGI from customers on a principal basis. All prices contained in this Press Release are current as of the date of the release. Investec Inc. expects to receive or intends to seek compensation for investment banking services from OFIX, RTIX and BONZ in the next 3 months. A research analyst or a member of the research analyst's household has a financial interest in RTIX (long position).