ArthroCare Corporation Acquires Reimbursement Service Provider, Reaffirms 2007 and 2008 Guidance

AUSTIN, Texas--(BUSINESS WIRE)--ArthroCare Corp. (Nasdaq:ARTC), a leader in developing state-of-the-art, minimally invasive surgical products, announced that it has acquired DiscoCare, Inc., a third-party billing and reimbursement service provider, for $25 million in cash plus potential future milestone payments. This acquisition will allow ArthroCare to significantly expand its internal reimbursement capability and to leverage these services across all divisions. The acquisition is not expected to have a material impact on 2008 earnings. The Company also reaffirmed its guidance for the fourth quarter of 2007 and the 2008 calendar year, indicating that it expects GAAP diluted earnings per share for the fourth quarter to be between $0.48 to $0.50 GAAP.