ORTHOsoft Inc.

ORTHOsoft Inc.
Smith & Nephew

January 05, 2005 11:09 ET

ORTHOsoft and Smith & Nephew Introduce New Imageless Hip Application: Computer Assisted Surgical Application Developed Through Agreement with Smith & Nephew


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ORTHOSOFT HOLDINGS INC.

TSX VENTURE SYMBOL: OSH

AND SMITH & NEPHEW

NYSE SYMBOL: SNN
LSE SYMBOL: SN

JANUARY 5, 2005 - 11:09 ET

ORTHOsoft and Smith & Nephew Introduce New Imageless
Hip Application: Computer Assisted Surgical
Application Developed Through Agreement with Smith &
Nephew

MONTREAL, QUEBEC--(CCNMatthews - Jan. 5, 2005) - ORTHOsoft Holdings Inc.
(TSX-V: OSH) today announced the full market release of a new imageless
minimally invasive total hip replacement application, developed in
collaboration with Smith & Nephew Orthopaedics. This is the first
computer-assisted surgical (CAS) application to result from the
worldwide development and distribution agreement recently signed by
ORTHOsoft and Smith & Nephew to serve the growing demand for minimally
invasive surgeries.

The AchieveCAS™ Hip was designed specifically for use with two Smith
& Nephew implant product lines: the Reflection™ and Synergy™
systems. The application will eventually be adapted for use with more
hip implants in the Smith & Nephew family, making this innovative,
minimally invasive technology accessible to a wider range of patients
and surgeons.

"We are pleased with the success of this first application developed
through our partnership with Smith & Nephew," said Dr. Louis-Philippe
Amiot, orthopedic surgeon and Chief Executive Officer of ORTHOsoft
Holdings Inc. "The application has already logged over 40 successful
surgeries by designing surgeons, who appreciate its easy-to-use
functionality."

The AchieveCAS™ Hip navigation system, which is compatible with
multiple navigation systems, was designed with a particular emphasis on
ease of use by surgical staff during surgery.

- The imageless application eliminates the need for pre-operative (CT
scanning) and intra-operative (fluoroscopy) imaging of the patient which
eliminates exposure to radiation for the patient and the surgeon.

- The innovative and highly-functional user interface is streamlined to
reduce the number of steps in the surgical procedure. It offers
sophisticated yet simple and intuitive graphic elements to explain the
surgical tasks to be done at each step of the application.

- CAS technology facilitates minimally invasive hip surgeries, allowing
smaller incisions, less damage of internal tissues and shorter recovery
times, all of which lead to less post-operative surgical complications
and improved patient outcomes.

"Traditional Total Hip Replacement is one of the most successful
surgical procedures performed today," commented Dr. David Harwood,
orthopedic surgeon at the Robert Wood Johnson Hospital in New Brunswick,
NJ. "However, when relying on just sight and feel, even the most skilled
surgeon can be inaccurate with regard to implant placement. By including
the AchieveCAS™ Hip in the operation, surgeons can achieve greater
accuracy and theoretically provide the patient with a better
functioning, longer lasting joint. With minimally invasive hip
replacement, visualization is decreased, which makes the use of
AchieveCAS™ Hip even more important."

Tens of thousands of hip replacement surgeries are carried out around
the world every year. This number is expected to continue to grow as a
result of the development of new CAS minimally invasive applications.


About ORTHOsoft

ORTHOsoft Holdings Inc. (www.orthosoft.ca), based in Montreal, Quebec,
Canada, designs and develops multi-platform surgical navigation systems
(Navitrack®) for the growing Computer-Assisted Orthopedic Surgery
(CAOS) market. ORTHOsoft's knee, hip and spine applications, which are
intuitive and easy to use because they follow traditional surgical flow,
provide surgeons with real-time data that improve both surgical process
and patient outcomes. To date, Navitrack® has supported over 16,000
surgical procedures in Europe and North America.


About Smith & Nephew

Smith & Nephew (NYSE: SNN, LSE: SN) (www.smith-nephew.com) is one of the
world's leading medical devices companies, specializing in Orthopaedics,
Endoscopy and Advanced Wound Management. Smith & Nephew is one of the
fastest growing full-line orthopaedics companies in the world, ranks as
the global leader in arthroscopy and is one of the world's leading
advanced wound management companies.

Smith & Nephew is dedicated to helping improve people's lives. The
company prides itself on the strength of its relationships with its
surgeon and healthcare professional customers, with whom its name is
synonymous with the highest standards of performance, innovation and
trust. The company has more than 7,000 employees and operates in 32
countries around the world, generating sales of nearly $2 billion.

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