Today Sulzer finalized the spin-off of its 74% shareholding in Sulzer Medica. Each Sulzer shareholder will receive today two Sulzer Medica shares per Sulzer share held as of July 9, 2001.

"The spin-off not only has immediate benefits for the shareholders of Sulzer and Sulzer Medica, it also creates long-term opportunities for both companies," said Leonardo Vannotti. As of today Sulzer shareholders will have the flexibility to invest in two pure play stocks: a focused industrial corporation and a medical devices company. The separation of the two businesses will allow investors to better understand the unique aspects of their portfolios and thus create greater operational and financial transparency. In addition, Sulzer Medica will benefit from the substantially increased free float.

In the medium and long term, the spin-off will allow the management teams of Sulzer and Sulzer Medica to better focus on implementing their respective growth strategies. The streamlined businesses of both companies will allow for more efficient organizational and management structures, which should enhance each company’s ability to deliver value to its shareholders.

Statements made in this release that state the beliefs or expectations of Sulzer and its management and which are not historical facts or which apply prospectively are forward-looking statements. These forward-looking statements, which include, but are not limited to, projections of future performance of materials and products, financial conditions, results of operation and cash flows, are subject to change based on known risks and unknown risks and various other factors which could cause the actual results or performance to differ materially from the statement made herein.

Sulzer Medica can be reached on the internet at www.sulzermedica.com