dj Orthopedics Acquires Patent License In Settlement of Litigation

SAN DIEGO, June 5 /PRNewswire-FirstCall/ -- dj Orthopedics, Inc. (NYSE: DJO), a designer, manufacturer, and marketer of products and services for the orthopedic sports medicine market, today announced that it has reached a settlement with Generation II Orthotics Inc. (GII) over an alleged infringement of patents covering knee braces for the treatment of unicompartmental osteoarthritis.

Under the terms of the license and settlement agreement, dj Orthopedics will receive a license to certain GII patents in dispute for the remaining life of the patents, or approximately ten years. The license clears the way for the Company to continue selling its OAdjuster® knee brace, its flagship osteoarthritis product and future derivatives of this product. In exchange, the Company will immediately pay GII $3 million and another $1 million in January 2004. The license payments will be amortized to expense over the estimated useful patent lives as a royalty charge on future sales of OAdjuster and its derivatives.

"With osteoarthritis bracing the fastest growing segment of the functional bracing market, we believe the license acquired is the best path forward for the Company," said Les Cross, president and CEO of dj Orthopedics, Inc. "With the strengthening of our intellectual property assets, we can focus on growing our osteoarthritis product line, which has been one of our strongest contributors since the launch of the OAdjuster in 2000."

In a separate release today, the Company also announced the acquisition of a cold therapy product line from DuraKold Corporation.

About dj Orthopedics

dj Orthopedics is a global orthopedic sports medicine company specializing in the design, manufacture and marketing of products and services that rehabilitate soft tissue and bone, help protect against injury and treat osteoarthritis of the knee. Its broad range of over 600 existing products, many of which are based on proprietary technologies, includes rigid knee braces, soft goods, specialty and other complementary orthopedic products. These products provide solutions for patients and orthopedic sports medicine professionals throughout the patient's continuum of care.

SOURCE dj Orthopedics, Inc.
-0- 06/05/2003
(DJO)

Company Investor/Media Contact:
DJO Incorporated
Mark Francois
Director of Corporate Communications & Investor Relations
760-734-4766

Mark.Francois[at]djoglobal[dot]com