Article: ArthroCare to Adjust Reported Third Quarter Results; Action to increase gross margin and operating income, but has no impact on revenue or EPS.

SUNNYVALE, Calif. -- ArthroCare(R) Corp. (Nasdaq:ARTC), a multi-business medical device company that develops minimally invasive surgical products, announced today it intends to adjust the third quarter results reported on Oct. 19, 2004 to reflect an increase in gross margin and operating income and a corresponding decrease in Other Income. This adjustment, which the company expects to be in the range of $200,000 to $300,000, is the result of a reclassification of certain foreign exchange transactions in ArthroCare's Swedish subsidiary. The company does not believe this adjustment is material and it will not result in any change in reported revenue or net income.

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