Guarantor and Non-guarantor Financial Statements.

Each of Biomet’s existing wholly owned domestic subsidiaries fully, unconditionally, jointly, and severally guarantee the senior notes on a senior unsecured basis and the senior subordinated notes on a senior subordinated unsecured basis, in each case to the extent such subsidiaries guarantee Biomet’s senior secured cash flow facilities. Certain amounts reported in the prior year have been corrected to more accurately reflect the allocation of intercompany items between the guarantor and the non-guarantor subsidiaries and to conform to the current period presentation. The Company believes such amounts are immaterial. LVB is neither an issuer nor guarantor of the notes described in Note 7.

The following financial information presents the composition of the combined guarantor subsidiaries:

CONDENSED CONSOLIDATING BALANCE SHEETS



	May 31, 2013
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	35.3	$	320.3	$	—		$	355.6
Accounts receivable, net	—		254.1		277.7		—			531.8
Investments	—		—		—		—			—
Income tax receivable	—		0.9		6.0		—			6.9
Inventories	—		286.9		337.1		—			624.0
Deferred income taxes	—		78.3		41.6		—			119.9
Prepaid expenses and other	—		72.8		61.6		—			134.4
Total current assets	—		728.3		1,044.3		—			1,772.6
Property, plant and equipment, net	—		350.1		315.1		—			665.2
Investments	—		10.9		12.1		—			23.0
Investment in subsidiaries	7,982.8		—		—		(7,982.8		)	—
Intangible assets, net	—		2,890.4		739.8		—			3,630.2
Goodwill	—		3,104.0		496.9		—			3,600.9
Other assets	—		88.9		13.9		—			102.8
Total assets	$	7,982.8	$	7,172.6	$	2,622.1	$	(7,982.8	)	$	9,794.7

Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	33.3	$	—	$	7.0	$	—		$	40.3
Accounts payable	—		63.8		47.7		—			111.5
Accrued interest	56.1		—		0.1		—			56.2
Accrued wages and commissions	—		82.1		68.0		—			150.1
Other accrued expenses	—		141.7		64.3		—			206.0
Total current liabilities	89.4		287.6		187.1		—			564.1
Long-term debt	5,924.8		—		1.3		—			5,926.1
Deferred income taxes	—		942.0		187.8		—			1,129.8
Other long-term liabilities	—		142.9		63.2		—			206.1
Total liabilities	6,014.2		1,372.5		439.4		—			7,826.1
Shareholder’s equity	1,968.6		5,800.1		2,182.7		(7,982.8		)	1,968.6
Total liabilities and shareholder’s equity	$	7,982.8	$	7,172.6	$	2,622.1	$	(7,982.8	)	$	9,794.7



	May 31, 2012
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	190.1	$	302.3	$	—		$	492.4
Accounts receivable, net	—		227.6		264.0		—			491.6
Investments	—		0.0		2.5		—			2.5
Income tax receivable	—		2.1		2.9		—			5.0
Inventories	—		288.7		254.5		—			543.2
Deferred income taxes	—		42.3		10.2		—			52.5
Prepaid expenses and other	—		48.8		75.3		—			124.1
Total current assets	—		799.6		911.7		—			1,711.3
Property, plant and equipment, net	—		320.1		273.5		—			593.6
Investments	—		10.1		3.8		—			13.9
Investment in subsidiaries	8,562.9		—		—		(8,562.9		)	—
Intangible assets, net	—		3,239.3		691.1		—			3,930.4
Goodwill	—		3,271.4		843.0		—			4,114.4
Other assets	—		45.6		11.2		—			56.8
Total assets	$	8,562.9	$	7,686.1	$	2,734.3	$	(8,562.9	)	$	10,420.4

Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	34.3	$	—	$	1.3	$	—		$	35.6
Accounts payable	—		71.5		44.7		—			116.2
Accrued interest	56.5		—		—		—			56.5
Accrued wages and commissions	—		69.5		52.5		—			122.0
Other accrued expenses	—		106.1		74.1		—			180.2
Total current liabilities	90.8		247.1		172.6		—			510.5
Long-term debt	5,790.0		—		2.2		—			5,792.2
Deferred income taxes	—		1,065.7		192.1		—			1,257.8
Other long-term liabilities	—		131.6		46.2		—			177.8
Total liabilities	5,880.8		1,444.4		413.1		—			7,738.3
Shareholder’s equity	2,682.1		6,241.7		2,321.2		(8,562.9		)	2,682.1
Total liabilities and shareholder’s equity	$	8,562.9	$	7,686.1	$	2,734.3	$	(8,562.9	)	$	10,420.4

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)



	Year Ended May 31, 2013
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations		Total
Net sales	$	—		$	1,922.3		$	1,130.6		$	—	$	3,052.9
Cost of sales	—			689.8			183.6			—		873.4
Gross profit	—			1,232.5			947.0			—		2,179.5
Selling, general and administrative expense	—			820.6			491.9			—		1,312.5
Research and development expense	—			112.8			37.5			—		150.3
Amortization	—			260.6			53.2			—		313.8
Goodwill impairment charge	—			167.9			305.1			—		473.0
Intangible assets impairment charge	—			94.4			0.0			—		94.4
Operating income (loss)	—			(223.8		)	59.3			—		(164.5		)
Other (income) expense, net	572.8			6.1			(2.3		)	—		576.6
Income (loss) before income taxes	(572.8		)	(229.9		)	61.6			—		(741.1		)
Tax expense (benefit)	(217.7		)	(87.4		)	187.4			—		(117.7		)
Equity in earnings of subsidiaries	(268.3		)	—			—			268.3		—
Net income (loss)	(623.4		)	(142.5		)	(125.8		)	268.3		(623.4		)
Other comprehensive income (loss)	13.1			—			(141.9		)	—		(128.8		)
Total comprehensive income (loss)	$	(610.3	)	$	(142.5	)	$	(267.7	)	$	268.3	$	(752.2	)



	Year Ended May 31, 2012
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations		Total
Net sales	$	—		$	1,769.8		$	1,068.3		$	—	$	2,838.1
Cost of sales	—			437.2			338.3			—		775.5
Gross profit	—			1,332.6			730.0			—		2,062.6
Selling, general and administrative expense	—			724.9			447.3			—		1,172.2
Research and development expense	—			94.7			32.1			—		126.8
Amortization	—			258.8			68.4			—		327.2
Goodwill impairment charge	—			189.4			102.5			—		291.9
Intangible assets impairment charge	—			74.9			163.0			—		237.9
Operating income (loss)	—			(10.1		)	(83.3		)	—		(93.4		)
Other (income) expense, net	477.1			3.1			17.2			—		497.4
Income (loss) before income taxes	(477.1		)	(13.2		)	(100.5		)	—		(590.8		)
Tax expense (benefit)	(181.3		)	86.8			(37.5		)	—		(132.0		)
Equity in earnings of subsidiaries	(163.0		)	—			—			163.0		—
Net income (loss)	(458.8		)	(100.0		)	(63.0		)	163.0		(458.8		)
Other comprehensive income (loss)	13.1			—			(62.0		)	—		(48.9		)
Total comprehensive income (loss)	$	(445.7	)	$	(100.0	)	$	(125.0	)	$	163.0	$	(507.7	)



	Year Ended May 31, 2011
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations		Total
Net sales	$	—		$	1,716.5		$	1,015.7		$	—	$	2,732.2
Cost of sales	—			338.3			385.9			—		724.2
Gross profit	—			1,378.2			629.8			—		2,008.0
Selling, general and administrative expense	—			717.4			438.8			—		1,156.2
Research and development expense	—			88.7			30.7			—		119.4
Amortization	—			257.6			110.3			—		367.9
Goodwill impairment charge	—			—			422.8			—		422.8
Intangible assets impairment charge	—			—			518.6			—		518.6
Operating income (loss)	—			314.5			(891.4		)	—		(576.9		)
Other (income) expense, net	493.9			(9.8		)	3.6			—		487.7
Income (loss) before income taxes	(493.9		)	324.3			(895.0		)	—		(1,064.6		)
Tax expense (benefit)	(187.2		)	101.0			(128.6		)	—		(214.8		)
Equity in earnings of subsidiaries	(543.1		)	—			—			543.1		—
Net income (loss)	(849.8		)	223.3			(766.4		)	543.1		(849.8		)
Other comprehensive income (loss)	19.5			(4.0		)	266.9			—		282.4
Total comprehensive income (loss)	$	(830.3	)	$	219.3		$	(499.5	)	$	543.1	$	(567.4	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended May 31, 2013
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	128.6		$	228.2		$	111.7		$	—	$	468.5
Capital expenditures	—			(102.9		)	(101.1		)	—		(204.0		)
Acquisitions, net of cash acquired - Trauma Acquisition	—			(277.5		)	(2.5		)	—		(280.0		)
Other	—			(2.5		)	(2.1		)	—		(4.6		)
Cash flows provided by (used in) investing activities	—			(382.9		)	(105.7		)	—		(488.6		)
Proceeds under revolvers/facility	80.0			—			6.6			—		86.6
Payments under revolvers/facility	(80.0		)	—			(0.6		)	—		(80.6		)
Proceeds from senior and senior subordinated notes due 2020 and term loans	3,396.2			—			—			—		3,396.2
Tender/retirement of senior notes due 2017 and term loans	(3,423.0		)	—			—			—		(3,423.0		)
Payment of fees related to refinancing activities	(79.0		)	—			—			—		(79.0		)
Other	(22.8		)	(0.1		)	(12.0		)	—		(34.9		)
Cash flows used in financing activities	(128.6		)	(0.1		)	(6.0		)	—		(134.7		)
Effect of exchange rate changes on cash	—			—			18.0			—		18.0
Increase (decrease) in cash and cash equivalents	—			(154.8		)	18.0			—		(136.8		)
Cash and cash equivalents, beginning of period	—			190.1			302.3			—		492.4
Cash and cash equivalents, end of period	$	—		$	35.3		$	320.3		$	—	$	355.6



	Year Ended May 31, 2012
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	36.7		$	63.0		$	277.6		$	—	$	377.3
Proceeds from sales/maturities of investments	—			42.1			—			—		42.1
Capital expenditures	—			(89.9		)	(89.4		)	—		(179.3		)
Other	—			(1.5		)	(5.3		)	—		(6.8		)
Cash flows provided by (used in) investing activities	—			(49.3		)	(94.7		)	—		(144.0		)
Payments under senior secured credit facilities	(35.4		)	—			—			—		(35.4		)
Other	(1.3		)	—			(1.4		)	—		(2.7		)
Cash flows used in financing activities	(36.7		)	—			(1.4		)	—		(38.1		)
Effect of exchange rate changes on cash	—			—			(30.6		)	—		(30.6		)
Increase in cash and cash equivalents	—			13.7			150.9			—		164.6
Cash and cash equivalents, beginning of period	—			176.4			151.4			—		327.8
Cash and cash equivalents, end of period	$	—		$	190.1		$	302.3		$	—	$	492.4



	Year Ended May 31, 2011
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	49.7		$	182.5		$	147.9		$	—	$	380.1
Proceeds from sales/maturities of investments	—			59.3			—			—		59.3
Purchases of investments	—			(78.7		)	—					(78.7		)
Capital expenditures	—			(81.4		)	(92.6		)	—		(174.0		)
Other	—			(8.8		)	(2.8		)	—		(11.6		)
Cash flows provided by (used in) investing activities	—			(109.6		)	(95.4		)	—		(205.0		)
Payments under senior secured credit facilities	(34.8		)	—			—			—		(34.8		)
Other	(14.9		)	—			(1.7		)	—		(16.6		)
Cash flows used in financing activities	(49.7		)	—			(1.7		)	—		(51.4		)
Effect of exchange rate changes on cash	—			—			15.0			—		15.0
Increase in cash and cash equivalents	—			72.9			65.8			—		138.7
Cash and cash equivalents, beginning of period	—			103.5			85.6			—		189.1
Cash and cash equivalents, end of period	$	—		$	176.4		$	151.4		$	—	$	327.8