dj Orthopedics Announces Closing of Its Public Offering of Common Stock

February 24, 2004

SAN DIEGO, Feb. 24 /PRNewswire-FirstCall/ -- dj Orthopedics, Inc., (NYSE: DJO), today announced the closing of its previously announced public offering of 7,500,000 shares of its common stock at $19.00 per share. An additional 1,125,000 shares were sold at $19.00 per share pursuant to the full exercise by the underwriters of their over-allotment option. The Company sold
3,162,500 shares in the offering, including the over-allotment shares, and selling stockholders sold 5,462,500 shares, including the over-allotment shares, through a prospectus supplement pursuant to the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission. The offering results in total net proceeds to dj Orthopedics of
approximately $56.7 million. The Company did not receive any of the net proceeds of the sale of shares by the selling stockholders.

dj Orthopedics intends to use all or substantially all of the net proceeds from the offering to purchase and/or redeem, as applicable, a portion of the $75.0 million of outstanding 12 5/8% senior subordinated notes due 2009. The Company may purchase these notes in the open market, in privately negotiated transactions or, on or after June 15, 2004, redeem these notes pursuant to the terms of the indenture governing the senior subordinated notes for an amount equal to (on June 15, 2004) 106.313% of the outstanding principal amount, plus accrued and unpaid interest. The Company also expects to use
cash on hand to purchase or redeem senior subordinated notes that are not retired from the use of the net proceeds from the offering.

J.P. Morgan Securities Inc. and Lehman Brothers Inc. acted as joint book-running managers for the offering. Co-managers of the offering were Piper Jaffray & Co., Wachovia Capital Markets, LLC, First Albany Capital Inc. and WR Hambrecht + Co, LLC.

Copies of the final prospectus supplement and the prospectus related to the offering can be obtained from J.P. Morgan Securities Inc., One Chase Manhattan Plaza, Floor 5B, New York, New York 10081 and from Lehman Brothers Inc., c/o ADP Financial Services Prospectus Fulfillment, 1155 Long Island Avenue, Edgewood, New York 11717.

About dj Orthopedics, Inc.

dj Orthopedics is a global medical device company specializing in rehabilitation and regeneration products for the non-operative orthopedic and spine markets. The Company's broad range of over 600 rehabilitation products, including rigid knee braces, soft goods and pain management products, are used to prevent injury, to treat chronic conditions and to aid in recovery after surgery or injury. The Company's regeneration products consist of bone growth stimulation devices that are used to treat nonunion fractures and as an adjunct therapy after spinal fusion surgery.

The Company sells its products in the United States and in more than 30 other countries through networks of agents,
distributors and its direct sales force that market its products to orthopedic and spine surgeons, podiatrists, orthopedic and prosthetic centers, third-party distributors, hospitals, surgery centers, physical therapists, athletic trainers and other healthcare professionals.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements relate to, among other things, the Company's financing
plans and intended use of proceeds from its public offering. These forward-looking statements are based on the Company's current expectations and are subject to a number of risks, uncertainties and assumptions, such as those risks detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE dj Orthopedics, Inc.
-0- 02/24/2004
CO: dj Orthopedics, Inc.
ST: California
IN: FIN HEA SPM
SU:
AP
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6613 02/24/2004 16:05 EST http://www.prnewswire.com

 

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

Mark.Francois[at]djoglobal[dot]com