MINNEAPOLIS--(BUSINESS WIRE)--Feb. 21, 2006--Medtronic, Inc. (NYSE:MDT):

    --  Company-wide Revenue Increased 9% (Constant Currency Growth of
        12%)

    --  Implantable Cardioverter Defibrillator (ICD) Revenue Grew 21%
        (Constant Currency Growth of 23%)

    --  Spinal Revenue Grew 19% (Constant Currency Growth of 20%)

    --  R&D Spending Increased 16% to $280 Million

Medtronic, Inc. (NYSE:MDT) today announced record revenue for the quarter ended January 27, 2006, of $2.770 billion, a 9 percent increase over the $2.531 billion recorded in the third quarter of fiscal year 2005. On a constant currency basis, growth was 12 percent with a negative currency translation impact of $72 million or 3 percent.

As reported, third quarter net earnings were $670 million or $0.55 per diluted share, an increase of 23 percent and 22 percent respectively over the prior year third quarter. Excluding the litigation charge included in the prior year third quarter, net earnings and earnings per share increased 20 percent.

"Solid overall growth was again led by our two largest product lines, implantable defibrillators and spinal products. These two product lines accounted for about 45 percent of the corporation's revenue and, on a constant currency basis, they collectively grew 22 percent compared to the prior year third quarter," said Art Collins, chairman and chief executive officer of Medtronic. "This year's growth reflects the impact of ongoing investments; for example, during this quarter R&D expenditures increased 16 percent to $280 million."

Cardiac Rhythm Management Business

Cardiac Rhythm Management (CRM) quarterly revenue was $1.263 billion, representing growth of 10 percent over the same period last fiscal year (constant currency growth of 13 percent). ICD revenue was $723 million in the quarter, representing an increase of 21 percent (constant currency growth of 23 percent). ICD revenue gains underscore the strength of Medtronic's product line and sales and technical support teams. Worldwide pacing revenue was $426 million in the quarter, a decrease of 1 percent (constant currency growth of 3 percent). Negatively impacted by previously disclosed vendor supply issues, Emergency Response Systems reported revenue of $99 million, a decrease of 4 percent (constant currency decrease of 1 percent).

    CRM highlights include:

    --  Medtronic's InSync Sentry(TM) CRT-D system, with OptiVol(TM)
        fluid status monitoring, continued to be well received by
        physicians and now represents the majority of Medtronic CRT-D
        units sold worldwide. These products, combined with the
        EnTrust and Intrinsic ICD families, have strengthened
        Medtronic's market leadership position.

    --  The EnRhythm pacemaker with Medtronic's unique managed
        ventricular pacing (MVP) feature helped drive 8 percent pacing
        growth in the U.S., the strongest performance in over three
        years.

    --  The Medtronic CareLink(R) Network continued to expand, with
        close to 60,000 patients now being monitored by about 750
        clinics.

    Spinal, ENT and Navigation Businesses

Spinal / Ear, Nose and Throat (ENT) / Navigation revenue for the quarter was $628 million, representing 17 percent growth over the same period last fiscal year (constant currency growth of 19 percent). Maintaining a track record of strong growth and market share improvement, Spinal revenue of $534 million increased 19 percent (constant currency growth of 20 percent).

    Spinal highlights include:

    --  Spinal Biologics revenue increased more than 35 percent as
        surgeon demand for INFUSE(TM) bone graft increased in both
        spinal and trauma indications.

    --  Enrollment was completed in the PRESTIGE(R) LP cervical disc
        clinical trial, Medtronic's third major artificial cervical
        disc trial for the treatment of degenerative spine disease.
        Medtronic's portfolio of dynamic stabilization products, which
        includes the DIAM(TM) System, the MAVERICK(TM) and O-MAV(TM)
        artificial lumbar discs and the PRESTIGE LP and BRYAN(R)
        cervical discs, continued to gain momentum and collectively
        hold the number one market position in Europe.

    --  Five spinal products received 510(k) clearance from the U.S.
        Food and Drug Administration (FDA), including a new indication
        for cranial stabilization in cervical spinal fusion for the
        VERTEX reconstruction system, the world's leading posterior
        cervical stabilization system.

    Neurological and Diabetes Businesses

Neurological and Diabetes quarterly revenue of $489 million increased 6 percent over the same quarter one year ago (constant currency growth of 9 percent). Neurological revenue of $307 million and Diabetes revenue of $182 million both grew 6 percent (constant currency growth of 9 percent).

    Neurological and Diabetes highlights include:

    --  Medtronic's RESTORE(TM) rechargeable neurostimulation system
        with its unique flexible extender that allows for easier
        device replacement continued to be well received by
        physicians. RESTORE is estimated to hold the leading market
        share position in the rapidly growing rechargeable segment of
        the market and now accounts for the majority of Medtronic
        Neurostimulation systems sold.

    --  The U.S. clinical trial for the Intercept(TM) epilepsy control
        system met an early milestone and enrollment in the trial will
        accelerate.

    --  Distribution of the Guardian(TM) RT continuous glucose
        monitoring system was expanded to cover many international
        markets and select U.S. cities. The system displays glucose
        readings every five minutes and alerts the patient when
        glucose levels become too high or low. Diabetes patients will
        now be able to intervene earlier to maintain healthy glucose
        control.

    Vascular Business

Vascular revenue of $236 million for the quarter represented 6 percent growth over the same period last fiscal year (constant currency growth of 13 percent).

    Vascular highlights included:

    --  The Endeavor(TM) drug eluting coronary stent continued to be
        well received by physicians and is now commercially released
        in over 85 countries outside the U.S. Revenues of $43 million
        represented mid- to high-teens market share in countries where
        the product has been fully commercialized.

    --  The initial clinical trial of Endeavor CR, Medtronic's
        next-generation drug-eluting stent commenced. Endeavor CR is
        designed to promote an appropriate healing response for
        patients with diabetes or complex lesions.

    --  The first pre-market approval (PMA) module for the Talent(TM)
        thoracic stent graft system was submitted to the FDA.
        Medtronic holds a global market leadership position with the
        AneuRx(R) and Talent(TM) stent grafts that treat abdominal and
        thoracic aortic aneurysms (AAA/TAA).

    Cardiac Surgery Business

Cardiac Surgery revenue of $154 million in the quarter declined 6 percent over the same period last fiscal year (constant currency decline of 3 percent). Looking ahead, the company expects to release two new valve repair products in early fiscal year 2007, which should help improve growth in this segment.

Concluding Comments

In reviewing the quarter, Collins concluded, "Medtronic's overall competitive position remains strong as we compete in some of the most attractive segments of the medical technology industry."

Webcast Information

Medtronic will host a webcast today, February 21 at 4:30 pm EST (3:30 CST), to provide information about its businesses for the public, analyst and news media. This quarterly webcast can be accessed by clicking on the Investor Relations link on the Medtronic home page at www.medtronic.com., and this earnings release will be archived at www.medtronic.com/newsroom. Within 24 hours, a replay of the webcast and a transcript of the company's prepared remarks will be available in the "Presentations & Transcripts" section of the Investor Relations homepage.

About Medtronic

Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, alleviating pain, restoring health and extending life for people with chronic disease. Its Internet address is www.medtronic.com.

This press release contains forward-looking statements, including statements regarding clinical trials, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, general economic conditions and others described in Medtronic's Quarterly Report on Form 10-Q for the quarter ended October 28, 2005. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statement.

                           MEDTRONIC, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                             (Unaudited)
                 (in millions, except per share data)

                               Three months ended   Nine months ended
                               ------------------- -------------------
                               Jan. 27,  Jan. 28,  Jan. 27,  Jan. 28,
                                 2006      2005      2006      2005
                               ------------------- --------- ---------

Net sales                      $2,769.5  $2,530.7  $8,225.3  $7,276.6

Costs and expenses:
  Cost of products sold           698.7     605.6   2,047.3   1,740.7
  Research and development
   expense                        280.3     241.0     818.9     703.4
  Selling, general, and
   administrative expense         899.7     814.2   2,685.3   2,355.9
  Special charges                     -         -     100.0         -
  Certain litigation                  -      24.3         -      24.3
  Purchased in-process
   research and development
   (IPR&D)                            -         -     363.8         -
  Other expense, net                9.6      94.6     101.1     212.1
  Interest income                 (23.7)    (13.0)    (52.5)    (24.4)
                               --------- --------- --------- ---------
    Total costs and expenses    1,864.6   1,766.7   6,063.9   5,012.0
                               --------- --------- --------- ---------

Earnings before income taxes      904.9     764.0   2,161.4   2,264.6

Provision for income taxes        235.3     219.9     354.7     655.1
                               --------- --------- --------- ---------

Net earnings                     $669.6    $544.1  $1,806.7  $1,609.5
                               ========= ========= ========= =========


Earnings per share:
      Basic                       $0.55     $0.45     $1.49     $1.33
                               ========= ========= ========= =========
      Diluted                     $0.55     $0.45     $1.48     $1.32
                               ========= ========= ========= =========


Weighted average shares
 outstanding:
      Basic                     1,208.5   1,208.2   1,209.4   1,208.9
      Diluted                   1,222.8   1,219.1   1,222.6   1,220.0


                           MEDTRONIC, INC.
           RECONCILIATION OF CONSOLIDATED GAAP NET EARNINGS
                TO CONSOLIDATED ADJUSTED NET EARNINGS
                             (Unaudited)
                 (in millions, except per share data)

                              Three months ended Three months ended
                               January 27, 2006   January 28, 2005
                              ------------------ ------------------

Net earnings, as reported                $669.6             $544.1
Certain litigation                            -               15.6 (a)

                              ------------------ ------------------
Adjusted net earnings                    $669.6             $559.7
                              ================== ==================


                           MEDTRONIC, INC.
           RECONCILIATION OF CONSOLIDATED GAAP DILUTED EPS
                 TO CONSOLIDATED ADJUSTED DILUTED EPS
                             (Unaudited)

                              Three months ended Three months ended
                               January 27, 2006   January 28, 2005
                              ------------------ ------------------

Diluted EPS, as reported                  $0.55              $0.45
Certain litigation                            -               0.01 (a)

                              ------------------ ------------------
Adjusted diluted EPS                      $0.55              $0.46
                              ================== ==================

(a) The $15.6 million ($0.01 per share) after-tax certain litigation
charge ($24.3 million pre-tax) is related to the DePuy/AcroMed, Inc.
(DePuy/AcroMed) litigation. In addition to disclosing certain
litigation charges that are determined in accordance with U.S.
generally accepted accounting principles (GAAP), Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider
the impact of excluding this litigation charge. Management believes
that this non-GAAP financial measure provides useful information to
investors regarding the underlying business trends and performance of
the Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates this
litigation charge when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures
prepared in accordance with GAAP. This non-GAAP financial measure may
not be the same as similar measures presented by other companies.


                           MEDTRONIC, INC.
           RECONCILIATION OF CONSOLIDATED GAAP NET EARNINGS
                TO CONSOLIDATED ADJUSTED NET EARNINGS
                             (Unaudited)
                 (in millions, except per share data)

                           Nine months ended     Nine months ended
                            January 27, 2006      January 28, 2005
                           ------------------    ------------------

Net earnings, as reported           $1,806.7              $1,609.5
Special charges                         65.6 (a)                 -
Certain litigation                         -                  15.6 (d)
IPR&D charges                          295.3 (b)                 -
Income tax adjustments                (225.0)(c)                 -
                           ------------------    ------------------
Adjusted net earnings               $1,942.6              $1,625.1
                           ==================    ==================


                           MEDTRONIC, INC.
           RECONCILIATION OF CONSOLIDATED GAAP DILUTED EPS
                 TO CONSOLIDATED ADJUSTED DILUTED EPS
                             (Unaudited)

                           Nine months ended     Nine months ended
                            January 27, 2006      January 28, 2005
                           ------------------    ------------------

Diluted EPS, as reported               $1.48                 $1.32
Special charges                         0.05 (a)                 -
Certain litigation                         -                  0.01 (d)
IPR&D charges                           0.24 (b)                 -
Income tax adjustments                 (0.18)(c)                 -
                           ------------------    ------------------
Adjusted diluted EPS                   $1.59                 $1.33
                           ==================    ==================

(a) The $65.6 million ($0.05 per share) special charge represents an
after-tax charitable donation ($100.0 million pre-tax) made to The
Medtronic Foundation. In addition to disclosing special charges that
are determined in accordance with GAAP, Medtronic management believes
that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact
of excluding this donation. The Company has not made a similar
contribution to The Medtronic Foundation since fiscal year 2002.
Management believes that this non-GAAP financial measure provides
useful information to investors regarding the underlying business
trends and performance of the Company's ongoing operations and is
useful for period over period comparisons of such operations.
Medtronic management eliminates this donation when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for,
financial performance measures prepared in accordance with GAAP. This
non-GAAP financial measure may not be the same as similar measures
presented by other companies.

(b) The $295.3 million ($0.24 per share) after-tax IPR&D charge
($363.8 million pre-tax) represents the cumulative impact of pre-tax
charges of $168.7 million related to a technology acquired through the
purchase of Transneuronix, Inc. that had not yet reached technological
feasability and had no future alternative use, $175.1 million related
to the purchase of spinal technology based devices owned by Gary K.
Michelson, M.D. and Karlin Technology, Inc. that had not yet reached
technological feasability and had no future alternative use, and $20.0
million related to a cross-licensing agreement with NeuroPace, Inc.
for patent and patent applications on products that had not yet
reached technological feasability and had no future alternative use,
collectively the IPR&D charges. In addition to disclosing IPR&D that
is determined in accordance with GAAP, Medtronic managment believes
that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact
of excluding these IPR&D charges. These IPR&D charges resulted from
facts and circumstances that vary in frequency and/or impact on
continuing operations. Management believes that this non-GAAP
financial measure provides useful information to investors regarding
the underlying business trends and performance of the Company's
ongoing operations and is useful for period over period comparisons of
such operations. Medtronic management eliminates these IPR&D charges
when evaluating the operating performance of the Company. Investors
should consider this non-GAAP measure in addition to, and not as a
substitute for, financial performance measures prepared in accordance
with GAAP. This non-GAAP financial measure may not be the same as
similar measures presented by other companies.

(c) The $225.0 million ($0.18 per share) tax adjustment represents a
$225.0 million tax benefit associated with the reversal of reserves
resulting from favorable agreements reached with the U.S. Internal
Revenue Service (IRS) involving the review of fiscal years 1997
through 2002 domestic income tax returns. In addition to disclosing
the provision for income taxes that is determined in accordance with
GAAP, Medtronic management believes that in order to properly
understand its short-term and long-term financial trends, investors
may find it useful to consider the impact of excluding this tax
adjustment. Management believes that this non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations
and is useful for period over period comparisons of such operations,
specifically the effective tax rate. Medtronic management eliminates
this tax adjustment when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures
prepared in accordance with GAAP. This non-GAAP financial measure may
not be the same as similar measures presented by other companies.

(d) The $15.6 million ($0.01 per share) after-tax certain litigation
charge ($24.3 million pre-tax) is related to the DePuy/AcroMed
litigation. In addition to disclosing certain litigation charges that
are determined in accordance with GAAP, Medtronic management believes
that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact
of excluding this litigation charge. Management believes that this
non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the
Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates this
litigation charge when evaluating the operating performance of the
Company. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures
prepared in accordance with GAAP. This non-GAAP financial measure may
not be the same as similar measures presented by other companies.


                            MEDTRONIC, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)

                                                  Nine months ended
                                               -----------------------
                                               January 27, January 28,
                                                  2006        2005
                                               ----------- -----------
                                                (dollars in millions)
OPERATING ACTIVITIES:
   Net earnings                                  $1,806.7    $1,609.5
   Adjustments to reconcile net earnings to
    net cash provided by operating activities:
     Depreciation and amortization                  407.1       339.3
     Purchased in-process research and
      development                                   363.8           -
     Certain litigation                                 -        24.3
     Provision for doubtful accounts                  8.2        20.2
     Tax benefit from exercise of stock
      options                                        77.0        52.0
     Deferred income taxes                          182.5        15.4
     Change in operating assets and
      liabilities:
        Accounts receivable                        (123.1)     (156.0)
        Inventories                                (274.2)      (80.1)
        Accounts payable and accrued
         liabilities                             (1,047.6)      240.6
        Other operating assets and liabilities      102.8       (41.2)
                                               ----------- -----------


     Net cash provided by operating activities    1,503.2     2,024.0

INVESTING ACTIVITIES:
   Acquisitions, net of cash acquired              (285.2)      (96.4)
   Purchase of intellectual property               (830.7)          -
   Additions to property, plant and equipment      (305.4)     (306.7)
   Purchases of marketable securities            (4,863.3)     (996.8)
   Sales and maturities of marketable
    securities                                    2,849.6       532.8
   Other investing activities, net                    1.3        76.3
                                               ----------- -----------

     Net cash used in investing activities       (3,433.7)     (790.8)

FINANCING ACTIVITIES:
   Increase in short-term borrowings, net           574.2        21.9
   Increase in long-term debt, net                  993.9           -
   Dividends to shareholders                       (348.9)     (303.6)
   Issuance of common stock                         444.8       236.7
   Repurchase of common stock                      (709.4)     (511.0)
                                               ----------- -----------

     Net cash provided by (used in) financing
      activities                                    954.6      (556.0)

Effect of exchange rate changes on cash and
 cash equivalents                                   111.5       (85.4)
                                               ----------- -----------

Net change in cash and cash equivalents            (864.4)      591.8

Cash and cash equivalents at beginning of
 period                                           2,232.2     1,593.7
                                               ----------- -----------


Cash and cash equivalents at end of period       $1,367.8    $2,185.5
                                               ----------- -----------


Supplemental Cash Flow Information
Cash Paid For:
   Income taxes                                    $580.1      $365.1
   Interest                                          59.8        34.1
Supplemental Noncash Investing and Financing
 Activities:
   Deferred payments for purchases of
    intellectual property                           $30.0          $-
   Reclassification of debentures from short-
    term to long-term debt                              -     1,973.2
   Reclassification of debentures from long-
    term to short-term debt                       1,971.4           -


                            MEDTRONIC, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)

                                               January 27,  April 29,
                                                  2006        2005
                                               ----------- -----------
                                                (dollars in millions,
                                               except per share data)
ASSETS
------

Current assets:
   Cash and cash equivalents                     $1,367.8    $2,232.2
   Short-term investments                         3,559.0     1,159.4
   Accounts receivable, less allowances of
    $180.2 and $174.9, respectively               2,364.6     2,292.7
   Inventories                                    1,177.2       981.4
   Deferred tax assets, net                          83.2       385.6
   Prepaid expenses and other current assets        373.7       370.2
                                               ----------- -----------

     Total current assets                         8,925.5     7,421.5

Property, plant and equipment                     3,709.7     3,628.6
Accumulated depreciation                         (1,833.8)   (1,769.3)
                                               ----------- -----------

     Net property, plant and equipment            1,875.9     1,859.3

Goodwill                                          4,345.0     4,281.2
Other intangible assets, net                      1,631.6     1,018.0
Long-term investments                             1,122.2     1,565.7
Other assets                                        438.8       471.7
                                               ----------- -----------


     Total assets                               $18,339.0   $16,617.4
                                               ----------- -----------


LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

Current liabilities:
   Short-term borrowings                         $3,023.2      $478.6
   Accounts payable                                 310.9       371.8
   Accrued compensation                             612.6       542.2
   Accrued income taxes                             428.5       923.3
   Other accrued expenses                           496.3     1,064.1
                                               ----------- -----------

     Total current liabilities                    4,871.5     3,380.0

Long-term debt                                    1,002.5     1,973.2
Deferred tax liabilities, net                       362.8       478.1
Long-term accrued compensation                      176.8       157.9
Other long-term liabilities                         187.8       178.7
                                               ----------- -----------

     Total liabilities                            6,601.4     6,167.9

Commitments and contingencies                          --          --

Shareholders' equity:
   Preferred stock-- par value $1.00                   --          --
   Common stock-- par value $0.10                   120.9       121.0
   Retained earnings                             11,448.8    10,178.5
   Accumulated other non-owner changes in
    equity                                          167.9       150.0
                                               ----------- -----------

     Total shareholders' equity                  11,737.6    10,449.5
                                               ----------- -----------


     Total liabilities and shareholders'
      equity                                    $18,339.0   $16,617.4
                                               ----------- -----------


                           MEDTRONIC, INC.
                     REVENUE BY OPERATING SEGMENT
                             (Unaudited)

($ millions)
----------------------------------------------------------------------
                           FY 05    FY 05    FY 05    FY 05    FY 05
                           QTR 1    QTR 2    QTR 3    QTR 4    TOTAL
----------------------------------------------------------------------
REPORTED REVENUE:
 CARDIAC RHYTHM
  MANAGEMENT               $1,097   $1,104   $1,150   $1,265   $4,616
       Low Power Pacing       451      438      431      436    1,756
       High Power
        Defibrillation        551      546      598      684    2,379
       Emergency Response
        Systems                79      104      104      126      413
       Other                   16       16       17       19       68

 SPINAL, ENT & NAVIGATION    $484     $506     $536     $599   $2,125
     Spinal Constructs        317      332      343      380    1,372
     Spinal Biologics          89       99      107      118      413
     Ear, Nose & Throat
      (ENT)                    58       55       61       67      241
     Navigation                20       20       25       34       99

 NEUROLOGICAL and
  DIABETES                   $408     $430     $460     $496   $1,794
     Neurological             170      179      184      206      739
     Gastroenterology &
      Urology                  42       45       49       52      188
     Neurologic
      Technologies             50       53       56       59      218
     Diabetes                 146      153      171      179      649

 VASCULAR                    $196     $201     $221     $233     $851
     Stents                    71       78       86       82      317
     Other Coronary            71       71       77       89      308
     Endovascular/
      Peripheral               54       52       58       62      226

 CARDIAC SURGERY             $161     $159     $164     $185     $669
     Valves                    56       54       56       64      230
     Perfusion                 79       79       80       89      327
     Cardiac Surgery
      Technologies             26       26       28       32      112


    TOTAL                  $2,346   $2,400   $2,531   $2,778  $10,055
                          ============================================

ADJUSTMENTS:

  CURRENCY (1)                 35       40       59       32     $166

COMPARABLE OPERATIONS (1)  $2,311   $2,360   $2,472   $2,746   $9,889
                          ============================================
----------------------------------------------------------------------
----------------------------------------------------------------------
                           FY 06    FY 06    FY 06    FY 06    FY 06
                           QTR 1    QTR 2    QTR 3    QTR 4    TOTAL
----------------------------------------------------------------------
REPORTED REVENUE:
 CARDIAC RHYTHM
  MANAGEMENT               $1,268   $1,289   $1,263       $-   $3,820
       Low Power Pacing       446      459      426        -    1,331
       High Power
        Defibrillation        718      733      723        -    2,173
       Emergency Response
        Systems                87       81       99        -      268
       Other                   17       16       15        -       48

 SPINAL, ENT & NAVIGATION    $589     $603     $628       $-   $1,820
     Spinal Constructs        376      382      387        -    1,146
     Spinal Biologics         128      134      147        -      408
     Ear, Nose & Throat
      (ENT)                    65       64       65        -      194
     Navigation                20       23       29        -       72

 NEUROLOGICAL and
  DIABETES                   $463     $487     $489       $-   $1,439
     Neurological             186      204      202        -      592
     Gastroenterology &
      Urology                  49       48       45        -      141
     Neurologic
      Technologies             55       57       60        -      172
     Diabetes                 173      178      182        -      534

 VASCULAR                    $205     $225     $236       $-     $665
     Stents                    65       90       96        -      251
     Other Coronary            81       78       83        -      242
     Endovascular/
      Peripheral               59       57       57        -      172

 CARDIAC SURGERY             $165     $161     $154       $-     $481
     Valves                    58       56       52        -      166
     Perfusion                 79       78       75        -      233
     Cardiac Surgery
      Technologies             28       27       27        -       82


    TOTAL                  $2,690   $2,765   $2,770       $-   $8,225
                          ============================================

ADJUSTMENTS:

  CURRENCY (1)                 26       (3)     (72)             $(49)

COMPARABLE OPERATIONS (1)  $2,664   $2,768   $2,842       $-   $8,274
                          ============================================
----------------------------------------------------------------------

(1) - Medtronic management believes that in order to properly
understand Medtronic's short-term and long-term financial trends,
investors may wish to consider the impact of foreign currency
translation on revenue. In addition, Medtronic management uses results
of operations before currency translation to evaluate the operational
performance of the Company and as a basis for strategic planning.
Investors should consider these non-GAAP measures in addition to, and
not as a substitute for, financial performance measures prepared in
accordance with GAAP.

Note: The data in this schedule has been intentionally rounded to the
nearest million and therefore the quarterly revenues may not sum to
the fiscal year to date revenues.

    CONTACT: Medtronic, Inc., Minneapolis
             Medtronic Investor Relations:
             Rachael Scherer, 763-505-2694
             or
             Medtronic Public Relations:
             Rob Clark, 763-505-2635
             or
             Medtronic International:
             Yvan Deurbroeck, +41 21 802 7574

    SOURCE: Medtronic, Inc.