X0201 4 2004-03-16 0 0001123313 KYPHON INC KYPH 0001210217 EDIDIN AVRAM A KYPHON INC. 1350 BORDEAUX DRIVE SUNNYVALE 94089 0 1 0 0 VP, Research and Development Common Stock 2004-03-16 4 M 0 9000 3.00 A 11032 D Common Stock 2004-03-16 4 S 0 9000 24.5250 D 2032 D Employee Stock Option (Right to Buy) 3.00 2004-03-16 4 M 0 9000 0 D 2003-01-28 2012-02-28 Common Stock 224000 215000 D Sale made pursuant to a 10b5-1 Trading Plan. This option vests according to the following schedule: 1/4 upon the date exercisable and 1/48 per month thereafter. Includes 210,000 shares exercisable at $3.00 per share, granted on 02/28/2002 and 5,000 shares exercisable at $15.40 per share, granted on 07/21/2003. Total includes 674 shares purchased in February 2003, 678 shares purchased in August 2003 and 680 shares purchased in February 2004 by Reporting Person under Issuer's Employee Stock Purchase Plan. David M. Shaw, Attorney-in-Fact 2004-03-17