X0202 4 2007-08-10 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 2007-08-10 4 A 0 12000 0 A 14425 D Total includes 401 shares purchased in February 2005; 444 shares purchased in August 2005; 391 shares purchased in February 2006; 743 shares purchased in August 2006 and 446 shares purchased February 2007 by the Reporting Person under the Issuer's Employee Stock Purchase Plan. Each Restricted Stock Unit represents a contingent right to receive one share of Kyphon Inc. Common Stock. There is no exercise price or expiration date. Restricted Stock Units granted on this date vest over a period of three years in three equal installments on each subsequent anniversary of the grant date beginning August 10, 2008. Vested shares are delivered to the Reporting Person on each vesting date. David M. Shaw, Attorney-In-Fact 2007-08-14