Kyphon Inc. Falls In Premarket On Analyst Downgrade Citing Increased Competitive Concerns

SUNNYVALE, Calif., Sept. 26 /PRNewswire-FirstCall/ -- Kyphon Inc. announced today that it will showcase a series of new products at the 21st annual meeting of the North American Spine Society (NASS) on September 27-29, 2006 at the Washington State Convention Center in Seattle, Washington. Kyphon's products will be on display in booth #406.

The Company's continued expansion of the balloon kyphoplasty product suite has resulted in the new KyphX(R) Latitude II(TM) Curette, which will be formally launched at NASS. This product represents significant advancements in Kyphon's curette franchise, featuring improvements in ease of use and mechanical deployment that assist spine specialists in treating vertebral compression fractures. In addition, the Company will provide expanded information regarding its recently launched products, including the larger KyphX(R) Express(TM) Inflatable Bone Tamp and the KyphX(R) Directional Bone Filler Devices.

This year's conference will also be the first NASS meeting at which Kyphon will promote its Discyphor(TM) Catheter System, used in performing Functional Anaesthetic Discography(TM) (F.A.D.) procedures for diagnosing discogenic pain. Over 300 F.A.D. procedures have been performed on over 400 intervertebral discs suspected of causing low back pain.

"Our Kyphoplasty products have now been used in the treatment of over 275,000 spinal fractures worldwide, which is clear evidence that balloon kyphoplasty is rapidly becoming the treatment standard of choice for patients with spinal compression fractures due to osteoporosis or cancer," commented Richard Mott, president and chief executive officer of Kyphon. "I am excited that Kyphon will be able to showcase our progress in expanding our product portfolio for the treatment of spinal fractures and diagnosis of discogenic pain at NASS. We believe the positive feedback we have received from clinicians who have used the Latitude II Curette and the Discyphor Catheter System for Functional Anaesthetic Discography further validates their clinical value."

About Kyphon Inc.

Kyphon develops and markets medical devices designed to restore spinal function using minimally invasive technologies. The company's KyphX line of products is used in balloon kyphoplasty, a minimally invasive procedure to treat spinal fractures caused by osteoporosis or cancer. More information about the company can be found at www.kyphon.com .

NOTE: Latitude, Latitude II, Express, Discyphor, and Functional Anaesthetic Discography are trademarks, and Kyphon and KyphX are registered trademarks, of Kyphon Inc.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements include, but are not limited to, those that use words such as "believes," "expects," "anticipates," "targets," "intends," "plans," "projects," and words of similar effect, and specifically include the company's future financial projections and anticipated business direction and performance. Forward-looking statements are based on management's current preliminary expectations and are subject to risks, uncertainties and assumptions, which may cause the company's actual results to differ materially from the statements contained herein. Information on potential risk factors that could affect Kyphon, its business and its financial results are detailed in the company's periodic filings with the Securities and Exchange Commission (SEC), including, but not limited to, those risks and uncertainties listed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Future Operating Results," which can be found in Kyphon's annual report on Form 10-K for the year ended December 31, 2005 filed with the SEC on March 3, 2006 and in Kyphon's quarterly report on Form 10-Q for the quarter ended June 30, 2006 filed with the SEC on August 8, 2006. Kyphon undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof.

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CONTACT: Investors and Media, Julie D. Tracy, Vice President, InvestorRelations and Corporate Marketing of Kyphon Inc., +1-408-548-6500, orjtracy@kyphon.com

Web site: http://www.kyphon.com/