X0202 4 2006-12-07 0 0001123313 KYPHON INC KYPH 0001140407 TAYLOR ARTHUR T KYPHON INC 1221 CROSSMAN AVENUE SUNNYVALE CA 94089 0 1 0 0 VP, COO Common Stock 2006-12-07 4 M 0 5000 27.03 A 6979 D Common Stock 2006-12-07 4 S 0 5000 43.7416 D 1979 D Employee Stock Option, Right To Buy 27.03 2006-12-07 4 M 0 5000 0 D 2005-07-30 2014-07-30 Common Stock 5000 350000 D Total includes 401 shares purchased in February, 2005; 444 shares purchased in August, 2005; 391 shares purchased in February, 2006, and 743 shares purchased in August, 2006 by Reporting Person under Issuer's Employee Stock Purchase Plan. This option vests according to following schedule: 1/4th on the date exercisable and 1/36th of the remainder per month thereafter. Includes 170,000 options exercisable at $27.03 per share, granted 7/30/04; 100,000 options exercisable at $37.65 per share granted 7/21/05; 60,000 options exercisable at $38.07 per share, granted 2/15/06, and 20,000 options exercisable at $39.27 per share, granted 9/15/06. Sale made pursuant to a 10b5-1 trading plan. Robert A. Koenig, Attorney-In-Fact 2006-12-07