ABBOTT PARK, IL (October 25, 2004) – Abbott announced the acquisition of Spine Next, S.A., of Bordeaux, France, a privately owned manufacturer of orthopedic spinal implant devices including a dynamic stabilization device that treats early degenerative disc disease without fusion of the vertebrae, helping patients preserve motion.

Under terms of the agreement, Abbott acquired all of the equity of Spine Next for approximately $60 million in cash plus additional milestone payments upon achievement of future targets. One-time charges are expected in the fourth quarter of 2004, primarily for in-process research and development. The transaction will not have an impact on Abbott’s on-going 2004 earnings-per-share, the company said.

Among Spine Next’s products is the Wallis system, a spinal implant for treating the root cause of degenerative disc disease without fusing the spine. Dynamic stabilization devices treat degenerative disc disease by providing additional support to the spine without fusion of the vertebrae. They have the potential to be less invasive than artificial discs, and provide surgeons an option for treating degenerative disc disease earlier in its progression.

The Wallis system is approved for sale throughout Europe and other parts of the world. In early 2005, Abbott expects to begin a clinical trial to collect data to support U.S. regulatory approval of the Wallis system.

In June 2003, Abbott acquired Spinal Concepts, a manufacturer of spinalfixation products used during spinal fusion surgery. Industry reports showthat approximately 400,000 back surgeries took place last year in the U.S.alone, and more than 60 percent of those surgeries involved fixation systemsor devices, or a combination. Medical experts predict that the next evolutionin the treatment of degenerative spinal disease will involve devices that givestrength and stability to the spine without the need for fusion.

“This acquisition enhances our spinal product line with an exciting non-fusion technology and expands the established global distribution network for our existing spinal products business,” Jeffrey Binder, president of Spinal Concepts, a division of Abbott Laboratories, said.

Spine Next, S.A., was formed in 1999 and is located in Bordeaux, France.The company has approximately 40 employees. Most of the company’ssales are outside of the U.S.

Abbott is involved in the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs more than 55,000 people and markets its products in more than130 countries.