To Our Shareholders

Peripheral Vascular Grows

Peripheral Vascular positioned for additional growth

ev3 is the only company that offers all major peripheral arterial disease (PAD) treatments. We continue to be the leader in plaque excision with a clinical and product technology portfolio that addresses the most common PAD indications. We are particularly pleased with the physician response to our new TurboHawk device, which we launched in 2009. The TurboHawk is designed to treat mild to moderately calcified above-the-knee lesions. By cutting through difficult plaque and calcium faster, the TurboHawk is easier for physicians to use, helping improve their treatment efficiency, maximize luminal gain, and preserve future treatment options.

TurboHawk is part of an expanded ev3 plaque excision tool kit that—along with the launch of our ev3-brand PTA balloons and TrailBlazer™ support catheter—is designed to grow our base business. We are also driving future growth with new products that we expect to introduce in 2010 and 2011, such as a below-the-knee version of the TurboHawk Plaque Excision System, an improved EverFlex+ stent system, and a next-generation plaque excision system. In addition, we expect that our investment in clinical studies, such as our DEFINITIVE series, and our pioneering work assessing the role that plaque excision can play in anti-restenosis, will provide further data to inform PAD treatment paradigms, broaden indications, and drive growth. During 2010, we will continue to focus on delivering gains in U.S. sales force productivity and expanding penetration in our international peripheral vascular business.

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