Tutogen says Zimmer's indication of interest inadequate

By Elaine Rigoli

Tampa, Fla., Aug. 11 - Tutogen Medical, Inc. said it has determined that the "indication of interest" on the part of Zimmer Holdings, Inc. to acquire all of the outstanding shares of Tutogen is inadequate.

On Aug. 9, Zimmer contacted management of the company and orally indicated an acquisition price range of $5.00 to $6.00 per outstanding share of Tutogen common stock. After consulting with management and Tutogen's financial advisers, a committee of the company's board of directors, which had been formed after Zimmer began exploring a potential transaction with the company in March, determined that the indicative price range was inadequate and that a transaction with Zimmer in that price range was not in the best interests of all of the shareholders of Tutogen.

In making its decision, the committee of the board said it took into account various factors, including the company's recent financial results and current strategic plan, and determined that it is in the best interests of all of the company's shareholders for the company to continue its focus on its operating plans. The company said it remains open to exploring other options for enhancing shareholder value.

According to the Schedule 13D filed with the Securities and Exchange Commission by Zimmer on Aug. 9, Zimmer indicated that it will not pursue an acquisition of the company at this time. However, as indicated in its Schedule 13D, Zimmer may formulate other plans and/or make other proposals and take other actions related to its investment in Tutogen that it deems to be appropriate.

Zimmer currently owns about 5.3 million shares of Tutogen common stock, or 33.2% of the current shares outstanding.

Tutogen, based in Alachua, Fla., manufactures sterile biological implant products.

Zimmer, based in Warsaw, Ind., develops orthopedic products.

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