X0201 4 2003-07-29 1 0001123313 KYPHON INC KYPH 0001180179 VERTICAL GROUP LP 25 DEFOREST AVENUE SUMMIT NJ 07901 0 0 1 0 Voting Common Stock 2479846 I Vertical Fund I, L.P. Voting Common Stock 2003-07-29 4 S 0 70000 20.3643 D 1165175 I Vertical Fund II, L.P. Voting Common Stock 2003-07-30 4 S 0 30000 22.3583 D 1135175 I Vertical Fund II, L.P. The reporting person is the general partner of the listed entity and disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16 or for any other purpose. /s/ John E. Runnells, General Partner of The Vertical Group, L.P. 2003-07-31