Exhibit 99.1

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements, which are
statements about matters that are not historical or current facts. In addition, our management may from time to time make forward-looking statements orally to analysts, investors, the news media and others. Forward-looking statements often include
words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, would, should, could,
may or similar words. Factors that could cause actual results to differ materially from those contained in any forward-looking statement include, without limitation:



| |  | the ability of the Company to fulfill its obligations with respect to the rights of the holders of the Series A Convertible Preferred Stock, including
but not limited to the redemption rights and registration rights of the holders of the Series A Convertible Preferred Stock;
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| |  | the resolution of litigation pending against the Company including the arbitration between Gyrus Group, PLC, Ethicon, Inc. and ArthroCare;
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| |  | the Companys ability to design or improve internal controls to address issues detected in the Review and other related matters or by management
in its reassessment of the Companys internal controls;
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| |  | the impact upon the Companys operations of the Review and other related matters, legal compliance matters or internal controls, improvement and
remediation;
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| |  | the ability of the Company to control expenses, legal compliance matters or internal controls review, improvement and remediation;
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| |  | the Companys ability to remain current in its periodic reporting requirements under the Exchange Act and to file required reports with the SEC on
a timely basis;
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| |  | the results of the investigations being conducted by the Staff of the Division of Enforcement of the Securities and Exchange Commission and the United
States Attorneys offices in Florida and North Carolina;
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| |  | the impact on the Company of additional civil and criminal investigations by state and federal agencies and civil suits by private third parties
involving the Companys financial reporting and restatement and its insurance billing and healthcare fraud-and-abuse compliance practices;
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| |  | the ability of the Company to attract and retain qualified senior management and to prepare and implement appropriate succession planning for its Chief
Executive Officer;
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| |  | general business, economic and political conditions;
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| |  | competitive developments in the medical devices market;
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| |  | changes in applicable legislative or regulatory requirements;
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| |  | the Companys ability to effectively and successfully implement its financial and strategic alternatives, as well as business strategies, and
manage the risks in its business;
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| |  | the reactions of the marketplace to the foregoing; and
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| |  | descriptions of assumptions underlying or relating to any of the foregoing matters and any other statements contained in this report that are or may be
forward-looking statements.
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Forward-looking statements reflect our managements beliefs, expectations or predictions
of future conditions, events or results based on various assumptions, information currently available to our management and managements estimates of trends and economic factors in the markets in which we are



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active, as well as our business plans. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. Our actual results and
financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. There are a number of factors that could cause actual conditions, events or results to differ
materially from those described in the forward-looking statements contained in this report. A discussion of certain factors that could cause actual conditions, events or results to differ materially from those expressed in any forward-looking
statements appears in Part I, Item 1ARisk Factors of our Annual Report on Form 10-K for the year ended December 31, 2008.

Readers are cautioned not to place undue reliance on forward-looking statements in this report or that we make from time to time, and to consider carefully the factors discussed in Part I, Item 1ARisk Factors of our
Annual Report on Form 10-K for the year ended December 31, 2008 in evaluating these forward-looking statements. These forward-looking statements are representative only as of the date they are made, and we undertake no obligation to update any
forward-looking statement as a result of new information, future events or otherwise.