Disc Motion Technologies

Frost & Sullivan Recognizes
Disc Motion Technologies for its Pioneering SpinalNon-fusion Solution – True TSMS™

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Palo Alto, Calif. — July 17, 2008 — Based on its recent analysis of the spinal non-fusion
technologies market, Frost & Sullivan is proud to recognize Disc Motion Technologies (DMT) with
the 2008 North American Frost & Sullivan Award for Product Innovation for its the True TSMS™
(Total Spinal Motion Segment System).

The spinal non-fusion technologies market is characterized by a significant degree of innovation
in the development of technologies that would make a difference to patients suffering from
debilitating back pain. The initial enthusiasm associated with first generation artificial lumbar discs
started dwindling, owing to apprehensions relating to lengthy and complicated learning curves,
risky revision procedures, and device failures.

DMT is a pioneer in the development of a lumbar spine – total joint replacement system –
designed to overcome the shortcomings of first generation artificial discs and dynamic
stabilization devices. It offers a solution that restores the physiological motion of the spine and
thereby alleviates pain.

“Having identified the fact that disc-only anterior arthroplasty is indicated for very few patients,
DMT has successfully developed the True TSMS, which employs the posterior approach that
surgeons are most comfortable performing,” says Frost & Sullivan Research Analyst Archana
Swathy. “The device is designed to address all the causes of pain including the discs, facet joints
and the neural canals, ideally being a curative for 80 percent of major lumbar spinal problems.”
The True TSMS consists of a posterior artificial disc – the TrueDisc, coupled with the TrueDyne
Posterior Dynamic Stabilizer (PDS), and the TrueDyne Dynamic Pedicle Screw (DPS). This entire
combination helps treat total disc degeneration. DMT has an exceptional initiative where its
products are used as a system of devices to address multiple indications. The True TSMS would
be intended for treating lumbar joint degeneration and the TrueDyne PDS for re-stabilizing the
spine following correction of spinal stenosis and for lumbar fusion. The TrueDyne DPS as
indicated can either be used in conjunction with the PDS or can be used with normal rod for
dynamic stabilization or fusion.

“Having developed a completely innovative approach to address total joint replacement, DMT
successfully accomplished the first human implant of the True TSMS device in May 2008,” adds
Swathy. “This is indeed a remarkable achievement for an emerging company that has
demonstrated its commitment towards posterior arthroplasty device.”

Additionally, DMT received CE mark for the True TSMS, which adds yet another feather to its
cap. DMT, realizing the importance of establishing clinical evidence, has recruited leading
surgeons around the world to use the TSMS; this effort allows for collecting clinical data in 2008
and beyond.

True TSMS is a worthy recipient of the 2008 Frost & Sullivan Product Innovation Award for the
U.S. spinal non-fusion technologies market. The posterior surgical approach improves patient
outcomes and the unique device combination can also be used to address a broader range of
indications and create new opportunities for growth.

Each year, Frost & Sullivan presents this award to the company that has demonstrated
excellence in new products and technologies within its industry. The recipient company has
shown innovation by launching a broad line of emerging products and technologies.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global
markets for demonstrating outstanding achievement and superior performance in areas such as
leadership, technological innovation, customer service, and strategic product development.
Industry analysts compare market participants and measure performance through in-depth
interviews, analysis, and extensive secondary research in order to identify best practices in the
industry.

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