X0202 4 2004-11-01 0 0001123313 KYPHON INC KYPH 0001083925 LASERSOHN JACK W C/O THE VERTICAL GROUP, L.P. 25 DEFOREST AVENUE SUMMIT NJ 07901 1 0 0 0 Voting Common Stock 2004-11-01 4 S 0 130000 24.30 D 2348740 I See Explanation Voting Common Stock 2004-11-02 4 S 0 270000 24.50 A 2078740 I See Explanation Director Stock Option (Right to Buy) 24.40 2004-11-01 2014-10-01 Common Stock 7500 7500 D The securities are owned by Vertical Fund I, L.P. and Vertical Fund II, L.P. (together the "Funds"). The reporting person is a general partner of The Vertical Group, L.P., the general partner of the Funds, and disclaims beneficial ownership of the securities except to the extent of his indirect pecuniary interest therein. 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. The option vests 1/36th per month for thirty-six (36) months commencing on the date exercisable. /s/ Jack W. Lasersohn 2004-11-03