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Strategic Initiatives

aap Implantate entered into a joint venture whereby a private equity company will acquire 67% of the shares of aap Joints, a reconstructive implant subsidiary in Asia, for €3MM (~US $3.9MM) in cash. The subsidiary focuses on implants and related products for hip, knee and shoulder, including C-ment® bone cement. In 2012, aap Joints recorded sales of ~$2.8MM. Ex-Asia, aap Joints will continue to serve its existing customer base in Europe and the Middle East. (aap Implantate AG, 6/28/13)