exv99w1

EXHIBIT 99.1

Contacts:


Media	Investors
Brad Bishop	Sean F. O’Hara	James T. Crines
574-372-4291	574-371-8032	574-372-4264
bradley.bishop@zimmer.com	sean.f.ohara@zimmer.com	james.crines@zimmer.com

Zimmer Reports Fourth Quarter and 2007 Financial Results

Fourth Quarter Highlights

	•		Net Sales of $1.07 billion represents an increase of 15% reported (10% constant currency)

	•		Worldwide Reconstructive Sales increased 15% reported (10% constant currency)

	•		Diluted EPS were $1.12 reported, an increase of 10% over the prior year period, and $1.18 adjusted, an increase of 16% over the prior year period

(WARSAW, IN) January 29, 2008 — Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the fourth quarter and year ended December 31, 2007. For the fourth quarter, the Company announced net sales of $1.07 billion, an increase over the prior year period of 15% reported and 10% constant currency. Diluted earnings per share for the quarter were $1.12 reported, an increase of 10%, and were $1.18 adjusted, an increase of 16%. Full year net sales were $3.9 billion, and diluted earnings per share were $3.26 reported and $4.05 adjusted, an increase of 18% adjusted over the prior year.

“We are pleased with our overall results for the fourth quarter, especially the strength of our sales across our geographic segments,” said David Dvorak, Zimmer Holdings President and CEO. “Our business units around the world responded to strong underlying growth in procedures during the quarter.”

During the quarter, the Company announced FDA approval of the Zimmer® NexGen® LPS-Flex Mobile Knee, only the second mobile bearing knee system to be approved for sale in the United States. The Company says that it has begun limited release of the LPS-Flex Mobile Knee and

expects general availability in the U.S. in mid-2008. In addition, the Company completed its acquisition of ORTHOsoft Inc., a leader in computer surgical navigation in orthopaedics.

In the fourth quarter, the Company purchased 1.62 million common shares for a total of $116 million under its stock repurchase program, leaving authority to make up to $621.1 million in additional purchases through December 31, 2008. For the full year 2007, the Company purchased 7.2 million shares for a total of $576.3 million.

Sales Tables

The following tables provide sales results by geographic segment and product category, as well as the percentage change compared to the prior year quarter and full year on both a reported and constant currency basis.

NET SALES — THREE MONTHS ENDED DECEMBER 31, 2007
(in millions, unaudited)


						Constant
	Net		Reported			Currency
	Sales		% Growth			% Growth
Geographic Segments
Americas	$	594		11	%		10	%
Europe		329		23			11
Asia Pacific		150		16			9

Total		1,073		15			10

Product Categories Reconstructive
Americas		481		11			10
Europe		296		23			11
Asia Pacific		122		16			9

Total		899		15			10

Knees
Americas		265		10			10
Europe		124		22			10
Asia Pacific		56		22			13

Total		445		15			10

Hips
Americas		165		10			9
Europe		138		16			5
Asia Pacific		56		11			4

Total		359		12			7

Extremities		30		34			30

Dental		65		30			24

Trauma		56		10			6

Spine		55		20			18

OSP and other		63		10			7

NET SALES — TWELVE MONTHS ENDED DECEMBER 31, 2007
(in millions, unaudited)


						Constant
	Net		Reported			Currency
	Sales		% Growth			% Growth
Geographic Segments
Americas	$	2,277		10	%		9	%
Europe		1,081		16			7
Asia Pacific		540		11			8

Total		3,898		12			9

Product Categories Reconstructive
Americas		1,854		10			10
Europe		971		16			7
Asia Pacific		436		12			8

Total		3,261		12			9

Knees
Americas		1,032		10			9
Europe		408		16			7
Asia Pacific		197		18			13

Total		1,637		12			9

Hips
Americas		630		9			8
Europe		468		12			4
Asia Pacific		201		5			3

Total		1,299		9			6

Extremities		104		34			31

Dental		221		23			20

Trauma		206		6			3

Spine		197		11			10

OSP and other		234		8			6

Net earnings for the fourth quarter were $264 million on a reported basis and $276 million on an adjusted basis, an increase of 13% adjusted over the prior year period. Net earnings for the full year 2007 were $773 million on a reported basis and $962 million on an adjusted basis, an increase of 14% adjusted over the prior year.

Guidance

Full year 2008 net sales are expected to be approximately 10 to 11% over 2007, including an approximate favorable foreign currency impact of 2%. Adjusted diluted earnings per share for the full year 2008 are expected to be $4.20 to $4.25, reflecting an increase of approximately 4 to 5% over prior year. The guidance reflects the expected costs for a number of ongoing infrastructure and operating initiatives, including upgrades to the Company’s U.S. sales and distribution capabilities, such as inventory tracking and instrumentation; enhancements to information technology and quality systems; increased investments in sales force and other marketing programs in the Spine, Dental and Trauma business units; and start-up costs for an expansion of worldwide manufacturing and distribution operations.

“We believe that investing today in the infrastructure needed to serve the health care market of the future will generate attractive returns in the years to come,” said Dvorak.

Conference Call

The Company will conduct its year-end 2007 investor conference call today, January 29, 2008, at 8:00 a.m. Eastern Time. The live audio webcast can be accessed via Zimmer’s Investor Relations website at http://investor.zimmer.com. It will be archived for replay following the conference.

Individuals who wish to dial into the conference call may do so at (888) 815-6162. International callers should dial (706) 634-9502. A digital recording will be available two hours after the completion of the conference call from January 29, 2008 to February 12, 2008. To access the recording, US/Canada callers should dial (800) 642-1687, or for International callers, dial (706) 645-9291, and enter the Conference ID, 30298922. A copy of this press release and other

financial and statistical information about the periods to be presented in the conference call will be accessible through the Zimmer website at http://investor.zimmer.com.

About the Company

Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer is a worldwide leader in designing, developing, manufacturing and marketing orthopaedic reconstructive, spinal and trauma devices, dental implants, and related orthopaedic surgical products. Zimmer has operations in more than 25 countries around the world and sells products in more than 100 countries. Zimmer’s 2007 sales were approximately $3.9 billion. The Company is supported by the efforts of more than 7,500 employees worldwide.

###

For more information about Zimmer, visit www.zimmer.com

Note on Non-GAAP Financial Measures

As used in this press release, the term “adjusted” refers to operating performance measures that exclude expenses incurred in connection with the third quarter 2007 settlement with the U.S. Department of Justice and acquisition, integration and other expenses. The term “constant currency” refers to any financial measure that excludes the effect of changes in foreign currency exchange rates. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measure are included in this press release.

Zimmer Safe Harbor Statement

This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 based on current expectations, estimates, forecasts and projections about the orthopaedics industry, management’s beliefs and assumptions made by management. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” and “seeks” or the negative of such terms or other variations on such terms or comparable terminology. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, our ability to successfully integrate acquired businesses,

our compliance with the Deferred Prosecution Agreement through March 2009 and the Corporate Integrity Agreement through 2012, the impact of our enhanced healthcare compliance global initiatives and business practices on our relationships with customers and consultants, our market share and our overall financial performance, the outcome of the Department of Justice Antitrust Division investigation announced in June 2006, the outcome of the informal investigation by the U.S. Securities and Exchange Commission into Foreign Corrupt Practices Act matters announced in October 2007, price and product competition, rapid technological development, demographic changes, dependence on new product development, the mix of our products and services, supply and prices of raw materials and products, customer demand for our products and services, control of costs and expenses, our ability to form and implement alliances, international growth, governmental laws and regulations affecting our U.S. and international businesses, including tax obligations and risks, product liability and intellectual property litigation losses, reimbursement levels from third-party payors, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see our periodic reports filed with the U.S. Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports. Readers of this document are cautioned not to place undue reliance on these forward-looking statements, since, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this document.

ZIMMER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2007 and 2006
(in millions, except per share amounts, unaudited)


	2007			2006			% Inc/(Dec)
Net Sales	$	1,073.5		$	933.6			15	%
Cost of products sold		253.9			207.5			22

Gross Profit		819.6			726.1			13


Research and development		50.8			45.6			11
Selling, general and administrative		401.2			345.6			16
Acquisition, integration and other expense		15.7			(3.4	)		576

Operating expenses		467.7			387.8			21


Operating Profit		351.9			338.3			4
Interest income, net		1.1			1.5			(31	)

Earnings before income taxes and minority interest		353.0			339.8			4
Provision for income taxes		89.0			95.0			(6	)
Minority interest		(0.2	)		(0.1	)		(104	)


Net Earnings	$	263.8		$	244.7			8


Earnings Per Common Share
Basic	$	1.13		$	1.03			10
Diluted	$	1.12		$	1.02			10

Weighted Average Common Shares Outstanding
Basic		233.3			238.5
Diluted		234.8			241.0

ZIMMER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 and 2006
(in millions, except per share amounts)


	2007			2006			% Inc/(Dec)
	(unaudited)
Net Sales	$	3,897.5		$	3,495.4			12	%
Cost of products sold		875.9			780.1			12

Gross Profit		3,021.6			2,715.3			11


Research and development		209.6			188.3			11
Selling, general and administrative		1,489.7			1,355.7			10
Settlement		169.5			—			100
Acquisition, integration and other expense		25.2			6.1			312

Operating expenses		1,894.0			1,550.1			22


Operating Profit		1,127.6			1,165.2			(3	)
Interest income, net		4.0			3.8			5

Earnings before income taxes and minority interest		1,131.6			1,169.0			(3	)
Provision for income taxes		357.9			334.0			7
Minority interest		(0.5	)		(0.5	)		(17	)


Net Earnings	$	773.2		$	834.5			(7	)


Earnings Per Common Share
Basic	$	3.28		$	3.43			(4	)
Diluted	$	3.26		$	3.40			(4	)

Weighted Average Common Shares Outstanding
Basic		235.5			243.0
Diluted		237.5			245.4

ZIMMER HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)


	December 31,		December 31,
	2007		2006
	(unaudited)
Assets
Current Assets:
Cash and equivalents	$	463.9	$	265.7
Restricted cash		2.5		2.4
Receivables, net		674.3		625.5
Inventories, net		727.8		638.3
Other current assets		214.2		214.3

Total current assets		2,082.7		1,746.2

Property, plant and equipment, net		971.9		807.1
Goodwill		2,621.4		2,515.6
Intangible assets, net		743.8		712.6
Other assets		213.9		192.9

Total Assets	$	6,633.7	$	5,974.4


Liabilities and Shareholders’ Equity

Current liabilities	$	748.6	$	628.2
Other long-term liabilities		328.4		323.4
Long-term debt		104.3		99.6
Minority interest		2.8		2.7
Shareholders’ equity		5,449.6		4,920.5

Total Liabilities and Shareholders’ Equity	$	6,633.7	$	5,974.4

Note: Reflects the adoption of Financial Accounting Standards Board Interpretation No. 48 as of January 1, 2007.

ZIMMER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 and 2006
(in millions)


	2007			2006
	(unaudited)
Cash flows provided by (used in) operating activities
Net earnings	$	773.2		$	834.5
Depreciation and amortization		230.0			197.4
Share-based compensation		70.1			76.0
Income tax benefits from stock option exercises		30.1			11.6
Excess income tax benefits from stock option exercises		(27.0	)		(8.0	)
Changes in operating assets and liabilities
Income taxes		70.0			68.7
Receivables		(12.5	)		(76.9	)
Inventories		(57.5	)		(39.2	)
Accounts payable and accrued expenses		59.0			(29.9	)
Other assets and liabilities		(64.6	)		6.5

Net cash provided by operating activities		1,070.8			1,040.7


Cash flows provided by (used in) investing activities
Additions to instruments		(138.5	)		(126.2	)
Additions to other property, plant and equipment		(192.7	)		(142.1	)
Proceeds from sale of property, plant and equipment		—			16.2
Acquisitions, net of acquired cash		(160.3	)		(34.9	)

Net cash used in investing activities		(491.5	)		(287.0	)


Cash flows provided by (used in) financing activities
Proceeds from employee stock compensation plans		163.4			41.3
Excess income tax benefits from stock option exercises		27.0			8.0
Repurchase of common stock		(576.3	)		(798.8	)
Net proceeds on lines of credit		—			18.8


Net cash used in financing activities		(385.9	)		(730.7	)


Effect of exchange rates on cash and equivalents		4.8			9.5


Increase in cash and equivalents		198.2			32.5
Cash and equivalents, beginning of period		265.7			233.2

Cash and equivalents, end of period	$	463.9		$	265.7

ZIMMER HOLDINGS, INC.
NET SALES BY GEOGRAPHIC SEGMENT
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2007 and 2006
(in millions)


	Three Months Ended December 31,							Twelve Months Ended December 31,
	2007		2006		% Inc/(Dec)			2007		2006		% Inc/(Dec)
	(unaudited)		(unaudited)					(unaudited)
Americas	$	594.1	$	537.2		11	%	$	2,277.0	$	2,076.5		10	%
Europe		329.0		267.1		23			1,081.0		931.1		16
Asia Pacific		150.4		129.3		16			539.5		487.8		11


Total	$	1,073.5	$	933.6		15		$	3,897.5	$	3,495.4		12

ZIMMER HOLDINGS, INC.
NET SALES BY PRODUCT CATEGORY
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2007 and 2006
(in millions)


	Three Months Ended December 31,							Twelve Months Ended December 31,
	2007		2006		% Inc/(Dec)			2007		2006		% Inc/(Dec)
	(unaudited)		(unaudited)					(unaudited)
Reconstructive	$	899.0	$	779.8		15	%	$	3,260.8	$	2,906.0		12	%
Trauma		55.8		50.5		10			205.8		194.7		6
Spine		55.5		46.1		20			197.0		177.4		11
OSP and other		63.2		57.2		10			233.9		217.3		8


Total	$	1,073.5	$	933.6		15		$	3,897.5	$	3,495.4		12

ZIMMER HOLDINGS, INC.
RECONCILIATION OF REPORTED % GROWTH TO
CONSTANT CURRENCY % GROWTH
(unaudited)


	For the Three Months Ended
	December 31, 2007
				Foreign			Constant
	Reported			Exchange			Currency
	% Growth			Impact			% Growth
Geographic Segments
Americas		11	%		1	%		10	%
Europe		23			12			11
Asia Pacific		16			7			9
Total		15			5			10

Product Categories Reconstructive
Americas		11			1			10
Europe		23			12			11
Asia Pacific		16			7			9
Total		15			5			10

Knees
Americas		10			0			10
Europe		22			12			10
Asia Pacific		22			9			13
Total		15			5			10

Hips
Americas		10			1			9
Europe		16			11			5
Asia Pacific		11			7			4
Total		12			5			7

Extremities		34			4			30

Dental		30			6			24

Trauma		10			4			6

Spine		20			2			18

OSP and other		10			3			7

ZIMMER HOLDINGS, INC.
RECONCILIATION OF REPORTED % GROWTH TO
CONSTANT CURRENCY % GROWTH
(unaudited)


	For the Twelve Months Ended
	December 31, 2007
				Foreign			Constant
	Reported			Exchange			Currency
	% Growth			Impact			% Growth
Geographic Segments
Americas		10	%		1	%		9	%
Europe		16			9			7
Asia Pacific		11			3			8
Total		12			3			9

Product Categories Reconstructive
Americas		10			0			10
Europe		16			9			7
Asia Pacific		12			4			8
Total		12			3			9

Knees
Americas		10			1			9
Europe		16			9			7
Asia Pacific		18			5			13
Total		12			3			9

Hips
Americas		9			1			8
Europe		12			8			4
Asia Pacific		5			2			3
Total		9			3			6

Extremities		34			3			31

Dental		23			3			20

Trauma		6			3			3

Spine		11			1			10

OSP and other		8			2			6

ZIMMER HOLDINGS, INC.
Reconciliation of Net Earnings and Adjusted Net Earnings
For the Three Months Ended December 31, 2007 and 2006
(in millions, unaudited)


	Three Months
	Ended December 31,
	2007			2006
Net Earnings	$	263.8		$	244.7
Acquisition, integration and other		15.7			(3.4	)
Inventory step-up		0.3			—
Taxes on acquisition, integration and other and inventory step-up		(3.7	)		4.1

Adjusted Net Earnings	$	276.1		$	245.4

ZIMMER HOLDINGS, INC.
Reconciliation of Net Earnings and Adjusted Net Earnings
For the Twelve Months Ended December 31, 2007 and 2006
(in millions, unaudited)


	Twelve Months
	Ended December 31,
	2007			2006
Net Earnings	$	773.2		$	834.5
Settlement		169.5			—
Acquisition, integration and other		25.2			6.1
Inventory step-up		0.5			—
Taxes on settlement, acquisition, integration and other and inventory step-up		(6.8	)		2.5

Adjusted Net Earnings	$	961.6		$	843.1

ZIMMER HOLDINGS, INC.
Reconciliation of Diluted EPS and Adjusted Diluted EPS
For the Three Months Ended December 31, 2007 and 2006
(unaudited)


	Three Months
	Ended December 31,
	2007			2006
Diluted EPS	$	1.12		$	1.02
Acquisition, integration and other		0.07			(0.01	)
Taxes on acquisition, integration and other		(0.01	)		0.01

Adjusted Diluted EPS	$	1.18		$	1.02

ZIMMER HOLDINGS, INC.
Reconciliation of Diluted EPS and Adjusted Diluted EPS
For the Twelve Months Ended December 31, 2007 and 2006
(unaudited)


	Twelve Months
	Ended December 31,
	2007			2006
Diluted EPS	$	3.26		$	3.40
Settlement		0.71			—
Acquisition, integration and other		0.11			0.03
Taxes on settlement, acquisition, integration and other		(0.03	)		0.01

Adjusted Diluted EPS	$	4.05		$	3.44

Reconciliation of 2008 Projected Diluted EPS
and Projected Adjusted Diluted EPS
(unaudited)


	Low		High
Projected Twelve Months Ended December 31, 2008:
Diluted EPS	$	4.12	$	4.17
Acquisition, integration and other, net of tax		0.08		0.08

Adjusted Diluted EPS	$	4.20	$	4.25