Medtronic and Bayer Diabetes Care Announce Alliance To Provide Blood Glucose Meter to Medtronic Patients Outside the United States

Medtronic and Bayer Diabetes Care Announce Alliance To Provide Blood Glucose Meter to Medtronic Patients Outside the United States

August 22, 2007

New Blood Glucose Meter to Provide Advanced Therapy Options
for People with Diabetes Beginning in Canada and Europe

    MINNEAPOLIS and TARRYTOWN, N.Y., Aug. 22
/Xinhua-PRNewswire/ --

    Medtronic, Inc. (NYSE: MDT) and Bayer Diabetes Care, a
division of Bayer HealthCare LLC and a member of the Bayer
Group (NYSE: BAY), today announced an alliance to
distribute and co-market a new blood glucose meter for
Medtronic patients outside the United States beginning in
Canada and Europe.  The new meter, based on Bayer's
Contour(R) meter platform, will wirelessly transmit blood
glucose test results directly to MiniMed Paradigm(R)
insulin pumps and Guardian(R) REAL-Time continuous glucose
monitoring (CGM) systems.  Wireless communications make
data entry easier and more convenient for patients.

    As part of the agreement, Bayer Diabetes Care acquires
exclusive rights to Medtronic's proprietary wireless
communications protocol in certain markets outside the
United States.  The new meter will initially be introduced
in Canada and Germany, followed by a phase one rollout in
Europe and in other countries as agreed upon by the
companies.  Details of the financial terms of the agreement
are not being disclosed.

    "Bayer's strong presence in key global markets
such as Canada, Europe, Latin America and Asia enables
Medtronic to reach more diabetes patients with its advanced
technologies," said Sandra Peterson, president of Bayer
Diabetes Care.  "This alliance also supports our
commitment to helping Medtronic customers maintain good
health through frequent glucose testing."  

    "Offering this new meter with our insulin pumps
and real-time continuous glucose monitoring systems will
improve quality of life and ease of use for many of our
patients," says Chris O'Connell, president of the
Diabetes business at Medtronic.  "Our new global
alliance allows us to bring trusted, state-of-the-art
solutions to Medtronic patients who strive for the best
possible diabetes management."

    Medtronic currently markets the MiniMed Paradigm(R)
REAL-Time Insulin Pump and Continuous Glucose Monitoring
System - the world's first insulin pump with REAL-Time
continuous glucose monitoring.  Together with CareLink(TM)
Therapy Management Software and wireless glucose meter
communication, Medtronic offers patients an integrated
solution for managing their diabetes.

    About the Diabetes Business at Medtronic

    The Diabetes business at Medtronic
(http://www.medtronicdiabetes.com and
http://www.medtronic-diabetes.co.uk) is the world leader in
diabetes management.  The company's products include insulin
pump therapy, continuous glucose monitoring systems, related
disposable products and diabetes management software.

    About Medtronic

    Medtronic, Inc. (http://www.medtronic.com),
headquartered in Minneapolis, is the global leader in
medical technology, alleviating pain, restoring health and
extending life for millions of people around the world.

    Bayer HealthCare Diabetes Care 

    Bayer HealthCare Diabetes Care
(http://www.bayerdiabetes.com) supports customers in 100
countries. Since the introduction of CLINITEST(R) reagent
tablets in 1941, Bayer has led the way in diabetes care
product innovation. The company changed the face of
diabetes care in 1969 when it introduced the first portable
blood glucose meter and test strips.  Bayer HealthCare
further innovated diabetes management by being the first
company to introduce a suite of blood glucose monitors with
No Coding(TM) technology.  The BREEZE(R)2 and CONTOUR(R)
blood glucose monitoring systems offer people with diabetes
an unparalleled choice in diabetes management systems.  The
Arthritis Foundation in the United States and the Arthritis
Society of Canada each granted Ease-of-Use Commendation to
the BREEZE meter, representing the first time a blood
glucose meter has been recognized as easy to use for
arthritis sufferers. 

    In July 2006, Bayer Diabetes Care acquired Metrika
Inc., maker and manufacturer of A1CNow+, a meter-based
diabetes monitoring system for measurement of HbA1c
(glycated hemoglobin) an important indicator of long term
blood sugar control. Bayer HealthCare, Diabetes Care global
headquarters is located in Tarrytown, New York, in the
United States and operates as part of Bayer HealthCare LLC,
a member of the worldwide Bayer HealthCare group.

    About Bayer HealthCare

    Bayer HealthCare, a subsidiary of Bayer AG, is one of
the world's leading innovative companies in the healthcare
and medical products industry and is based in Leverkusen,
Germany.  The company combines the global activities of the
Animal Health, Consumer Care, Diabetes Care and
Pharmaceuticals divisions.  The pharmaceuticals business
operates under the name Bayer Schering Pharma AG.  Bayer
HealthCare's aim is to discover and manufacture products
that will improve human and animal health worldwide.

    Medtronic Forward-Looking Statements

    Any forward-looking statements are subject to risks and
uncertainties such as those described in Medtronic's Annual
Report on Form 10-K for the year ended April 28, 2006. 
Actual results may differ materially from anticipated
results.
 
    Bayer Forward-Looking Statements

    This news release contains forward-looking statements
based on current assumptions and forecasts made by Bayer
Group management. Various known and unknown risks,
uncertainties and other factors could lead to material
differences between the actual future results, financial
situation, development or performance of the company and
the estimates given here. These factors include those
discussed in our public reports filed with the Frankfurt
Stock Exchange and with the U.S. Securities and Exchange
Commission (including our Form 20-F). The company assumes
no liability whatsoever to update these forward-looking
statements or to conform them to future events or
developments.


    For more information, please contact:

     Yvan Deurbroeck of Medtronic Public Relations
     Phone: [phone]

     Susan Yarin of Bayer HealthCare Media
     Phone: [phone]
     Email: [e-mail]