UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

     [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
              SECURITIES EXCHANGE ACT OF 1934

              For the quarterly period ended August 31, 1996.

 OR

     [ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934

              For the transition period from _______________ to _______________.

Commission file Number 0-12515. 
 
BIOMET, INC.
(Exact name of registrant as specified in its charter)

Indiana                                                      35-1418342
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)

Airport Industrial Park, P.O. Box 587, Warsaw, Indiana  46581-0587
(Address of principal executive offices)

(219) 267-6639 
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes  X    No        

The number of shares outstanding of each of the issuer's classes of common
stock, as of August 31, 1996:

Common Shares - No Par Value                                 115,647,413 Shares
(Class)                                                      (Number of Shares)

Rights to Purchase Common Shares                             115,647,413 Rights
(Class)                                                      (Number of Shares)


BIOMET, INC.

CONTENTS

                                              										                 Pages

    Part I.  Financial Information 

      Item 1.  Financial Statements:

                 Consolidated Balance Sheets                               1-2

                 Consolidated Statements of Income                           3

                 Consolidated Statements of Cash Flows                       4

                 Notes to Consolidated Financial Statements                5-6

      Item 2.  Management's Discussion and Analysis of
               Financial Condition and Results of Operations               7-8


    Part II.   Other Information                                             9

    Signatures                                                              10

    Index to Exhibits                                                       11



PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

BIOMET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
as of August 31, 1996 and May 31, 1996
(in thousands)

ASSETS
                                                 August 31,        May 31,
                                                    1996            1996
                                                 ----------        -------
Current assets: 				
  Cash and cash equivalents                      $ 128,773        $ 106,068
  Marketable securities                             26,909           30,834
  Accounts and notes receivable, net               156,628          154,055
  Inventories                                      153,785          151,465
  Prepaid expenses and other                        23,582           20,494
                                                   -------          -------
      Total current assets                         489,677          462,916
                                                   -------          -------
Property, plant and equipment, at cost             138,060          132,697
    Less, Accumulated depreciation                  55,794           52,533
                                                   -------          -------				
      Property, plant and equipment, net            82,266           80,164		
                                                   -------          -------
Marketable securities                               32,495           31,159
Intangible assets, net                               7,188            7,665 
Excess acquisition cost over fair value  		 		 
  of acquired net assets, net                       21,235           14,947
Other assets                                         1,628            1,618
                                                   -------          -------
Total assets                                     $ 634,489        $ 598,469 
                                                   =======          =======

The accompanying notes are a part of the consolidated financial statements.


BIOMET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
as of August 31, 1996 and May 31, 1996
(in thousands)

LIABILITIES AND SHAREHOLDERS' EQUITY 
                                                  August 31,        May 31,
                                                     1996     	      1996
                                                  ----------        -------
Current liabilities:       		 		 
  Short-term borrowings                           $   3,378        $   3,358
  Accounts payable                                   16,459           16,667
  Accrued income taxes                               24,934           11,295
  Accrued wages and commissions                      11,455           11,460
  Other accrued expenses                             18,198           19,319 
                                                    -------          -------
     Total current liabilities                       74,424           62,099 

Long-term liabilities: 				
  Deferred federal income taxes                       3,609            1,509
  Other liabilities                                     587              791
                                                    -------          -------
     Total liabilities                               78,620           64,399
                                                    -------          -------
Contingencies (Note 5) 				

Shareholders' equity: 				
  Common shares                                      74,126           68,376 
  Additional paid-in capital                         14,299           14,410
  Retained earnings                                 471,439          458,193
  Net unrealized appreciation of 
    certain equity securities                           484              584
  Cumulative translation adjustment                  (4,479)          (7,493)
                                                    -------          -------
     Total shareholders' equity                     555,869          534,070 
                                                    -------          -------
Total liabilities and shareholders' equity        $ 634,489        $ 598,469 
                                                    =======          =======

The accompanying notes are a part of the consolidated financial statements.


CONSOLIDATED STATEMENTS OF INCOME
for the three months ended August 31, 1996 and 1995
(in thousands, except earnings per share)

                                                       1996             1995
                                                       ----             ----

Net sales                                            $137,178        $127,227

Cost of sales                                          44,428          41,279
                                                      -------         -------
  Gross profit                                         92,750          85,948

Selling, general and 
  administrative expenses                              49,889          50,597
Research and development expense                        6,518           6,197
                                                      -------         -------
  Operating income                                     36,343          29,154

Other income, net                                       2,351           3,796
                                                      -------         -------
  Income before income taxes                           38,694          32,950

Provision for income taxes                             14,607          12,201
                                                      -------         -------
  Net income                                         $ 24,087        $ 20,749
                                                      =======         =======

Earnings per share, based on 
  the weighted average number 
  of shares outstanding	during 
  the periods presented                                 $ .21           $ .18
                                                         ====            ====
Weighted average number of shares                     115,739         115,252
                                                      =======         =======

The accompanying notes are a part of the consolidated financial statements.


BIOMET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended August 31, 1996 and 1995
(in thousands)

                                                          1996          1995
                                                          ----          ----
Cash flows from (used in) operating activities:
  Net income                                            $ 24,087      $ 20,749
  Adjustments to reconcile net income to 				
    net cash from operating activities: 				
      Depreciation                                         3,415         2,882
      Amortization                                         1,813         2,407
      Gain on sale of marketable securities, net             (62)       (2,743)
      Changes in current assets and current liabilities,
       excluding effects of acquisitions: 				
        Accounts and notes receivable, net                 1,420           982
        Inventories                                        1,411        (7,703)
        Prepaid expenses and other                        (2,858)       (1,490)
        Accounts payable                                  (2,394)       (6,583)
        Accrued income taxes                              13,436         1,656
        Accrued wages and commissions                        (21)       (2,917)
        Other accrued expenses                            (3,159)       (1,614)
                                                         -------        ------
        Net cash from operating activities                37,088         5,626 
                                                         -------        ------
Cash flows from (used in) investing activities: 				
  Cash proceeds from sales and maturities of 
    marketable securities                                 11,622        30,428 
  Purchases of marketable securities                      (9,004)       (4,753)
  Capital expenditures                                    (3,458)       (2,438)
  Business acquisition, net of cash acquired              (4,667)           --
  Increase in other assets                                  (568)       (1,181)
  Other                                                     (227)          (90)
                                                         -------        ------
        Net cash from (used in) investing activities      (6,302)       21,966
                                                         -------        ------
Cash flows from (used in) financing activities: 				 
  Decrease in short-term borrowings                          (69)          (90)
  Issuance of common shares                                2,870           317
  Purchase of common shares                              (11,375)      (10,406)
                                                         -------        ------
        Net cash used in financing activities             (8,574)      (10,179)
                                                         -------        ------
Effect of exchange rate changes on cash                      493        (2,970)
                                                         -------        ------
Increase in cash and cash equivalents                     22,705        14,443
Cash and cash equivalents, beginning of year             106,068        34,091
                                                         -------        ------
Cash and cash equivalents, end of period                $128,773      $ 48,534
                                                         =======        ======

The accompanying notes are a part of the consolidated financial statements.


BIOMET, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:     OPINION OF MANAGEMENT.

The accompanying consolidated financial statements include the
accounts of Biomet, Inc. and its wholly-owned subsidiaries
(individual and collectively referred to as the "Company").  The
unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not
include all of the information and notes required by generally
accepted accounting principles for complete financial
statements.  In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary
for a fair presentation have been included.  Operating results
for the three month period ended August 31, 1996 are not
necessarily indicative of the results that may be expected for
the fiscal year ending May 31, 1997.  For further information,
refer to the consolidated financial statements and notes thereto
included in the Company's Annual Report on From 10-K for the
fiscal year ended May 31. 1996.

The accompanying consolidated balance sheet at May 31, 1996, has
been derived from the audited Consolidated Financial Statements
at that date, but does not include all disclosures required by
generally accepted accounting principles.

NOTE 2:     INVENTORIES.

Inventories at August 31, 1996 and May 31, 1996 are as  follows:

                              August 31,       May 31,
                                1996            1996   
                              ----------       -------
                                    (in thousands)

    Raw materials              $ 21,612       $ 19,643
    Work in process              16,798         15,677
    Finished goods               70,686         71,974
    Consigned inventory          44,689         44,171
                                -------        -------
                               $153,785       $151,465
                                =======        =======

NOTE 3:     INCOME TAXES.

The difference between the reported provision for income taxes
and a provision computed by applying the federal  statutory rate
to pre-tax accounting income is primarily attributable to state
income taxes, tax exempt income and tax credits.

NOTE 4:     COMMON SHARES.

During the three months ended August 31, 1996, the Company
issued 568,419 Common Shares upon the exercise of outstanding
stock options for proceeds aggregating $2,870,000 and purchased
747,180 outstanding Common Shares for $11,375,000.

NOTE 5:     ACQUISITIONS.

On August 1, 1996, the Company completed the acquisition of one
of its foreign distributors.  The purchase price consisted of
200,385 Common Shares of the Company and $4.7 million cash.  The
excess acquisition cost over fair value of acquired net assets
at the acquisition date approximated $6.8 million.  The
acquisition has been accounted for using the purchase method of
accounting.  Pro forma consolidated results of operations are
not presented as the amounts are not materially different from
the Company's historical results.

NOTE 6:     CONTINGENCIES.

In August 1996, the United States District Court for the Southern
District of Florida entered a judgment on the state law claims of
Raymond G. Tronzo that were the subject of a previous jury verdict
against the Company in the amount of approximately $55 million.  In
that judgement, Tronzo was awarded damages of approximately $33.7
million, including compensatory damages of approximately $7.1 million,
punitive damages of $20 million and prejudgment interest of
approximately $6.6 million.  The trial court dismissed, with prejudice,
Tronzo's claim based upon unjust enrichment.  For reasons unknown, the
trial court has not yet ruled on the Company's motion challenging the
validity of Tronzo's patent.  If the trail court ultimately
finds the patent to be invalid, management believes that this
finding will provide additional support to its legal arguments
challenging the judgment on the state law claims.  If, however,
the trial court ultimately finds the patent to be valid,  Tronzo
will be awarded an additional $5.7 million judgment for patent
infringement, including a fifty percent enhancement based upon
willfulness, and the trial court will also consider whether
Tronzo is entitled to an award of attorney's fees and an
injunction prohibiting future sales of the finned version of the
Mallory/Head acetabular cup, the device found to have infringed
the Tronzo patent.  This device accounts for a relatively small
portion of the total sales of the Company's Mallory/Head Total
Hip System, and represents less than one percent of the
Company's annual sales.  The Company intends to file
post-judgment motions for judgment in its favor and,
alternatively, for a new trial or to amend or modify the
judgment to seek reduction of the punitive damages and
prejudgment interest components of the judgment.  Management
anticipates that it will vigorously pursue an appeal of the
judgment if these motions are not favorably resolved.  Based on
the information and advice currently available, management
believes that the Company has adequate accruals to cover legal
costs and estimated loss exposure, if any, and that the
Company's cash and cash equivalents are more than adequate to
address the payment of any loss that may ultimately be incurred
with respect to this matter.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS

FINANCIAL CONDITION AS OF AUGUST 31, 1996

The Company's cash and investments increased $20,116,000 to
$188,177,000 at August 31, 1996, despite the $11,375,000 cash
outlay for Common Shares purchased during the first quarter.

Cash flows provided by operating activities were $37,088,000 for
the first three months of fiscal 1997 compared to $5,626,000 in
1996.  The primary sources of 1997 cash flows from operating
activities were net income and an increase in accrued income
taxes.  Accrued income taxes increase in the first quarter
because there is no federal tax estimate due in the first
quarter.

Cash flows provided by (used in) investing activities were
$(6,302,000) for the first three months of fiscal 1997 compared
to $21,966,000 in 1996.  The primary source of cash flows from
investing activities were sales and maturities of marketable
securities offset by purchases of marketable securities,
purchases of capital equipment and a business acquisition (See
Note 5 of the Notes to Consolidated Financial Statements).

Cash flows used in financing activities were $8,574,000 for the
first three months of fiscal 1997 compared to $10,179,000 in
1996.  The primary use of cash flows from financing activities
was the purchase of the Company's Common Shares as part of the
Common Share Repurchase Program.  In June 1996, the Company's
Board of Directors authorized the purchase of up to 4,000,000
Common Shares of the Company in open market or privately
negotiated transactions through the close of business on June
23, 1997.  During the first quarter, the Company purchased
747,180 Common Shares at an aggregate cost of $11,375,000.
Future purchases, if any, will be dependent on market conditions.

In September 1996, the Company's Board of Directors declared the
Company's first ever cash dividend of ten cents ($.10) per share
to shareholders of record at the close of business on October
25, 1996.

Currently available funds, together with anticipated cash flows
generated from future operations, are believed to be adequate to
cover the Company's anticipated cash requirements, including the
payment of dividends, the Common Share Repurchase Program, the
Tronzo litigation, capital expenditures and research and
development costs.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED AUGUST 31, 1996
AS COMPARED TO THE THREE MONTHS ENDED AUGUST 31, 1995

Net sales increased 8% to $137,178,000 for the three month
period ended August 31, 1996, from $127,227,000 for the same
period last year. Elective surgery-related products appear to be
influenced to some degree by seasonal factors, as the number of
elective orthopedic procedures decline during the summer months 
and the holiday season.  The Company's U.S.-based revenue increased 
5% to $100,898,000 during the first three months, while foreign
sales increased 15% to $36,280,000.  Foreign currency exchange
rates did not have a material impact on sales or earnings during
the first three months.  Biomet's worldwide reconstructive
device sales during the first three months of fiscal 1997 were
$82,753,000, representing a 10% increase compared to the first
three months of last year.  This increase  was primarily
a result of Biomet's continued penetration of the reconstructive
device market led by the Maxim Total Knee System and the
Alliance Hip System.  Sales of EBI's products were $27,965,000
for the first three months of fiscal 1997, representing a 2%
increase as compared to the same period in 1996.  The decline
in the rate of growth in EBI's external fixation sales over the 
prior four quarters reflects the expiration of EBI's exclusive 
right to distribute Orthofix brand external fixation devices in 
the United States in June 1995, at which time Orthofix, Inc. began 
the direct sale of those products.  EBI has continued to liquidate 
its inventory of Orthofix products and, in late 1995, introduced 
the Dynafix line of external fixation devices.  The Dynafix products 
have found wide market acceptance, with the result that total 
external fixation sales continue to increase.  The Company's 
"other products" revenues totaled $26,460,000, representing a 6% 
increase over the first three months of fiscal year 1996, primarily 
as a result of increased sales of Lorenz and fixation products.

Cost of sales remained constant as a percentage of net sales at
32.4% for the first three months.   Selling, general and
administrative expenses decreased as a percentage of net sales
to 36.4%, compared to 39.8% (37.8% after deducting for the
following two items) for the first three months of last year. 
Last year's general and administrative expenses included $1.6
million related to the Ramos judgment and $1.0 million in
connection with the restructuring and consolidation of the
operations of Kirschner's reconstructive implant division.  This
reduction is principally the result of the consolidation of the
operations of Kirschner offset by increased legal expenses.  The
increase in research and development expenditures during the
first three months reflects Biomet's commitment to remain
competitive through technological advancements and to capitalize
on future opportunities available within the orthopedic market. 
Operating income rose 25% from $29,154,000 for the first three
months of fiscal 1996, to $36,343,000 for the first three months
of fiscal 1997, corresponding to the increase in net sales. 
Other income decreased $1,445,000 for the first three months of
fiscal year 1997 compared to the prior year's first three
months.  Last year's other income included a gain of $2,500,000
which was realized on the sale of the Company's holdings in
American Medical Electronics, Inc. in connection with the
closing of the Orthofix International NV and American Medical
Electronics, Inc. merger offset by interest expense of $400,000
related to the Ramos judgment.  The effective income tax rate
increased to 37.8% for the current period compared to 37.0% for
the same period in fiscal 1996.

These factors resulted in a 16% increase in net income to
$24,087,000 from $20,749,000 for the first three months of
fiscal 1997 as compared to the same period in fiscal 1996 . 
Earnings per share increased 17%, from  $.18 to $.21 for the
periods presented.

OTHER SIGNIFICANT EVENTS.

Based on the information and advice currently available to it,
management believes that the Company has adequate accruals to
cover legal costs and estimated loss exposure, if any, with
respect to the Tronzo litigation (see Note 6 of Notes to
Consolidated Financial Statements), and that the Company's cash
and cash equivalents are more than adequate to address the
payment of any loss that may ultimately be incurred thereto.

PART II.  OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders.

The Annual Meeting of Shareholders of the Company was held on
September 27, 1996.  At the Annual Meeting:

1.	The following persons were elected as Directors of the
Company for a three-year term expiring in 1999.

                                                             	Abstentions and
Name                     Votes For       Votes Withheld       Broker Non-Votes

C. Scott Harrison, M.D.  102,629,211     644,530              None
Niles L. Noblitt         103,296,655     622,065              None
Kenneth V. Miller        103,331,674     632,380              None
L. Gene Tanner           102,852,452     649,706              None
Marilyn Tucker Quayle    102,438,393     711,641              None

The following officers will continue in office until their term expires at the
1997 Annual Meeting of Shareholders: Dane A. Miller; Jerry L. Ferguson; Thomas
F. Kearns, Jr.; and Daniel P. Hann.

The following officers will continue in office until their term expires at the
1998 Annual Meeting of Shareholders: M. Ray Harroff; Jerry L. Miller; Charles
E. Niemier; and Ronald R. Fisher.

2.	The selection of Coopers & Lybrand L.L.P. as certified public accountants
for the Company for the fiscal year ending May 31, 1996 was ratified by the
shareholders, as follows:

     Votes For                             104,037,471
     Votes Against                             179,281
     Abstentions and Broker Non-Votes          284,757

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits.  See Index to Exhibits.

     (b)  Reports on Form 8-K. 
          None

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


BIOMET, INC.
------------
(Registrant)


DATE: 10/15/96                       BY: /s/  GREGORY D. HARTMAN
      --------                           -------------------------
                                         Gregory D. Hartman
                                         Vice President - Finance
                                         (Principal Financial Officer)

                                         (Signing on behalf of the Registrant
                                         and as Principal Financial Officer)

BIOMET, INC.

FORM 10-Q

INDEX TO EXHIBITS

                                                               Sequential
Number Assigned                                                Numbering System
in Regulation S-K                                              Page Number
Item 601               Description of Exhibit                  of Exhibit      
-----------------      --------------------------------        ----------------
(2)                    No exhibit.

(4)                    4.1 Specimen certificate for Common
                       Shares.  (Incorporated by reference
                       to Exhibit 4.1 to the registrant's
                       Report on Form 10-K for the fiscal
                       year ended May 31, 1985).

                       4.2  Rights Agreement between Biomet,
                       Inc. and Lake City Bank, as Rights 
                       Agent, dated as of December 2, 1989.
                       (Incorporated by reference to Exhibit
                       4 to Biomet, Inc. Form 8-K Current Report
                       dated December 22, 1989, File No. 0-12515).

(10)                   No exhibit.

(11)                   No exhibit.

(15)                   No exhibit.

(18)                   No exhibit.

(19)                   No exhibit.

(22)                   No exhibit.

(23)                   No exhibit.

(24)                   No exhibit.

(27)                   Financial data schedules.

(99)                   No exhibit.