[LOGO OMITTED]

                                                  FOR IMMEDIATE RELEASE

      For Further Information:
      Charles W. Federico                            Thomas Hein
      Group President & CEO                          CFO
      Orthofix International N.V.                    Orthofix International N.V.
      704.948.2600                                   704.948.2600


 Orthofix Announces Settlement of Government Investigation Regarding Off-Label
                   Use of Its External Bone Growth Stimulator

HUNTERSVILLE, N.C., Aug. 18, 2003 - Orthofix International (NASDAQ: OFIX)
announced today that it has ended a two-year-long federal investigation of its
billings to federal and state health care programs. By agreeing to pay
approximately $1,700,000, Orthofix has settled allegations involving TriCare's
(formerly CHAMPUS) payments to Orthofix for bone growth stimulators prescribed
by physicians for patients undergoing surgery on the cervical spine. Orthofix
will record the settlement charge as a one-time charge with an after-tax effect
of approximately $1,100,000, or $0.07 per share in the third quarter. President
and CEO Charles W. Federico stated that the Department of Justice also closed a
related concurrent investigation of the company's billings to other federal
health care programs, including Medicare and Medicaid, without taking further
action.

Orthofix's bone growth stimulator products have been approved by the Food and
Drug Administration (FDA) for use on the lower (lumbar) back for more than a
decade. Due to the positive success rate of bone growth stimulators when used on
the lower back, the treatment is commonly prescribed by surgeons "off-label" to
promote healing following spinal surgery on the neck and cervical portion of the
spine. The federal government contended that, unlike many commercial and other
governmental insurance plans, TriCare coverage policies do not allow coverage
for off-label uses of medical devices, even when the treating physician
certifies that the device is an important factor in the success of the spinal
surgery. TriCare is a federal health insurance plan in which many active-duty
and retired uniformed service men and women and their families are enrolled.

CEO Federico said that Orthofix and its attorneys in the Washington, D.C.,
office of Mintz Levin disagreed with the government's interpretation of the law
regarding coverage of off-label uses for the FDA-approved device, but decided to
settle the matter in order to avoid the costs of protracted litigation and to
maintain the company's good relationship with the government programs. Orthofix
did not admit to any wrongdoing in connection with the settlement, which covered
the years 1995 through 2002. "This settlement with the Department of Justice
represents an excellent outcome for Orthofix and its shareholders," CEO Federico
said. "With the investigation behind us, we can focus our attention and energy
on operations and the development of new and innovative products."

Orthofix is expanding its line of Bone Growth Stimulation devices to include a
device specifically designed for the treatment of the cervical spine. The
company presently is seeking FDA approval for the Cervical-Stim(R) Cervical
Fusion System. Orthofix initiated a prospective randomized multi-center clinical
investigation of the Cervical-Stim(R) under an approved Investigational Device
Exemption (IDE) in 1999. This clinical investigation has been concluded, and the
data will be presented in the fourth and final module of its PMA application,
which will be submitted to the FDA by the end of August 2003.


                                     (more)




                                                                        Page Two

Orthofix International N.V. is a leading provider of high-value, minimally
invasive medical devices for the orthopedic and trauma markets. Its products
include the Orthofix (R) external fixator for fractures and limb reconstruction;
Spinal-Stim(R) Lite for the enhanced healing of spinal fusions; Physio-Stim(R)
Lite for the healing of un-united fractures; the Orthotrac (TM) pneumatic vest
for treatment of chronic low back pain; the OSCAR (R) ultrasonic bone cement
removal system for hip revision procedures; the A-V Impulse System(R) for
enhancing venous circulation; and the Orthofix(R) Tibial and Femoral Nails with
their patented targeting system. For more information about the Company, please
visit htttp://www.orthofix.com.


Certain of the matters discussed in this news release are `forward-looking
statements' that involve risks and uncertainties, including, without limitation,
the acceptance of new products in the market and the impact of competitive
products and other risks and uncertainties. These are detailed from time to time
in the Company's periodic reports (including its Annual Report on Form 10-K for
the year ended December 31, 2002 and quarterly reports on Form 10-Q) and the
Company's press releases.

                                    # # # # #