ArthroCare Corp. (Nasdaq: ARTC) (the “Company”) announced today that it received a letter from the Nasdaq Listing Qualifications Panel (the “Panel”), dated January 14, 2009, stating that the Panel has determined to suspend and delist trading of the Company’s common stock on The Nasdaq Stock Market (“Nasdaq”). The suspension will become effective at the open of trading on Friday, January 16, 2009. ArthroCare has requested a review from the Nasdaq Listing and Hearing Review Council, which could result in staying the Panel’s decision to delist the Company’s common stock from Nasdaq. However, there can be no assurance that the request will be granted.

Following the suspension of the Company’s stock from Nasdaq, the Company expects its common stock to be quoted on the “Pink Sheets,” an electronic quotation service maintained by Pink OTC Markets, Inc., under the trading symbol “ARTC.PK”. Information about the Pink Sheets can be found on its Internet website at www.pinksheets.com.

The Panel’s delisting notice constitutes an event of default under the Company’s credit agreement with a group of banks. The Company is seeking a waiver of the default from the banks. However, there can be no assurance that the waiver will be granted.

ABOUT ARTHROCARE

Founded in 1993, ArthroCare Corp. (www.arthrocare.com) is a highly innovative, multi-business medical device company that develops, manufactures and markets minimally invasive surgical products. With these products, ArthroCare targets a multi-billion dollar market opportunity across several medical specialties, significantly improving existing surgical procedures and enabling new, minimally invasive procedures. Many of ArthroCare’s products are based on its patented Coblation technology, which uses low-temperature radiofrequency energy to gently and precisely dissolve rather than burn soft tissue — minimizing damage to healthy tissue. Used in more than four million surgeries worldwide, Coblation-based devices have been developed and marketed for sports medicine; spine/neurologic; ear, nose and throat (ENT); cosmetic; urologic and gynecologic procedures.