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8 Jun 2007

Biomet to Sell To Hedge Funds

The Board of Directors of Biomet Inc. announced that it has unanimously recommended to shareholders to accept an increased offer from hedge funds in a private equity consortium to acquire Biomet for $46.00 per share in cash, or an equity value of $11.4 billion.

Under the terms of the revised merger agreement, the consortium, which includes affiliates of hedge fund investor Blackstone Group, Goldman Sachs Capital Partners, private buyout firm Kohlberg Kravis Roberts & Co. and $30 billion hedge fund TPG, will commence a tender offer on or before June 14, 2007, to acquire all of the outstanding shares of Biomet's common stock.

The $46.00 per share offer price represents a premium of 32.3% over the closing price of Biomet's common stock on April 3, 2006, the trading day prior to public speculation that the company was exploring strategic alternatives. Biomet subsequently confirmed on April 6, 2006 that it had retained Morgan Stanley to assist it in exploring strategic alternatives.

In a statement, the hedge fund/buyout group said, "We are pleased that the consortium will be in a position to provide the company with financial and operational resources to support its future growth."

Biomet, Inc. and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries.

The Blackstone Group's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.

Kohlberg Kravis Roberts & Co. is one of the world's oldest and most experienced private equity firms specializing in management buyouts. Over the past 30 years, KKR has completed over 150 transactions with a total value of over US$279 billion.

TPG is a private investment partnership that was founded in 1992 and currently has more than $30 billion under management. The firm has offices in San Francisco, London, Hong Kong, Fort Worth and other locations globally.

Kassirer Hedge Funds Up for May

Canadian hedge fund Kassirer Market Neutral Limited Partnership announced today that earnings were up 1.08% in May 2007.

"Deal flow remains buoyant reflecting low interest rates, low debt default rates, easy financing, and the ubiquitous private equity buyers." Mark Kassirer, CEO of the hedge fund said.

"Competition for assets in this environment has been heated, and bumps on deals are more common now than at any time since the inception of our fund."

The hedge fund profited from a broadly diversified portfolio of merger arbitrage and special situations positions. The fund has maintained a relatively defensive stance and has historic volatility of half the volatility of bonds and one sixth of the volatility of equities, according to Kassirer.