Encore Medical Completes Acquisition of Compex Technologies

Encore Medical Corporation today announced that it completed its acquisition of Compex Technologies, Inc. The transaction, which was announced on November 14, 2005, closed on February 24, 2006, with consideration paid by Encore consisting of approximately eighteen million shares of Encore common stock. Encore also incurred approximately $17 million in debt in connection with the transaction, which was primarily used to pay off Compex’s existing debt. The shareholders of Encore and Compex both approved the transaction on February 23, 2006.
    Kenneth W. Davidson, Chief Executive Officer and Chairman of the Board of Encore Medical Corporation, stated, “The successful completion of the acquisition of Compex expands our presence in the very important pain management segment of the orthopedic rehabilitation market. We are pleased to welcome the Compex team to Encore.”
    Mr. Davidson continued, “We believe our acquisition of Compex will provide us with additional opportunities to leverage our presence in the orthopedic rehabilitation market and increase our growth of rehabilitation products that address pain management and are an alternative to the systemic solutions provided by drugs.”
    Kenneth W. Davidson will serve as Chief Executive Officer of Compex, now a wholly-owned subsidiary of Encore, as a result of acquisition. Dan W. Gladney, Compex’s President and Chief Executive Officer, and Marshall T. Masko, Compex’s President of Worldwide Consumer Products, have resigned their positions.
    First Albany Capital Inc. served as financial advisor to Encore and Greene Holcomb & Fischer, LLC served as financial advisor to Compex.
    Encore will discuss the transaction in its fourth quarter 2005 earnings conference call at 10 a.m. Eastern time today, February 27, 2006. The call will feature remarks by Kenneth W. Davidson and other members of the Encore management team.