Dear Shareholders:

2010 was highlighted by the successful commercial launch of the HeartMate II for Destination Therapy (DT) following its approval in January. HeartMate II provides clinicians with the first and only continuous flow device approved for both Bridge-to-Transplantation (BTT) and DT, enabling the field to transform care and restore life for patients in these under-served populations. In 2010, our clinician education, center training and market development programs demonstrated their value, as we realized improving patient outcomes, broader utilization of the HeartMate II for DT, increased referral activity from cardiologists and the addition of new HeartMate II centers. At the same time, we continued to build a foundation for future growth through investments in our organization and product development pipeline.

During the year, our devices provided extended survival and improved quality of life for thousands of new patients suffering from advanced-stage heart failure. HeartMate II alone is currently supporting over 3,000 patients and has provided over 6,000 years of enhanced life to heart failure patients worldwide.

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