Exhibit 99.5

KYPHON INC.

UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	Historical											Historical
	Nine Months Ended September 30, 2006					Pro Forma Adjustments			Pro Forma Combined			Nine Months Ended September 30, 2006			Pro Forma Adjustments			Pro Forma Combined
	Kyphon			St. Francis		St. Francis						Disc-O-Tech			Disc-O-Tech
Net sales	$	295,168		$	36,525	$	—		$	331,693		$	4,128		$	—		$	335,821
Cost of goods sold		37,474			3,487		6,075	(2)		47,036			1,834			—			48,870
Gross profit		257,694			33,038		(6,075	)		284,657			2,294			—			286,951
Operating expenses:
Research and development		28,912			2,958		—			31,870			1,759			—			33,629
Sales and marketing		142,644			15,461		—			158,105			527			—			158,632
General and administrative		43,371			3,799		—			47,170			14			—			47,184
Amortization of intangibles		—			—		9,255	(2)		9,255			—			7,753	(a)		17,008
Total operating expenses		214,927			22,218		9,255			246,400			2,300			7,753			256,453
Income (loss) from operations		42,767			10,820		(15,330	)		38,257			(6	)		(7,753	)		30,498
Interest income		6,796			90		(2,494	)(3)		4,392			—			(2,295	)(b)		2,097
Interest expense		(170	)		—		(24,242	)(4)		(24,412	)		—			(3,114	)(d)		(27,526	)
Other income (expense), net		(169	)		268		—			99			—			—			99
Income (loss) before income taxes		49,224			11,178		(42,066	)		18,336			(6	)		(13,162	)		5,168
Provision (benefit) for income taxes		21,720			—		(16,700	)(5)		5,020			—			(5,225	)(c)		(205	)
Net income (loss)	$	27,504		$	11,178	$	(25,366	)	$	13,316		$	(6	)	$	(7,937	)	$	5,373
Net income (loss) per share:
Basic	$	0.62							$	0.30								$	0.12
Diluted	$	0.60							$	0.29								$	0.12
Weighted-average shares outstanding:
Basic		44,313								44,313									44,313
Diluted		46,158								46,158									46,158

See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial Information

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