The company reported first quarter revenue of $3.933 billion, a 6 percent increase compared to the $3.706 billion reported in the first quarter of fiscal year 2009. Revenue growth on a constant currency basis was 10 percent after adjusting for a $145 million negative foreign currency translation. This quarter contained 14 weeks, one more week than the first quarter of fiscal year 2009.

As reported, first quarter net earnings were $445 million, or $0.40 per diluted share, both decreasing 38 percent over the same period in the prior year. As detailed in the attached table, adjusting for restructuring and certain litigation charges, and the impact of adopting a new accounting standard for non-cash interest expense on convertible debt, first quarter net earnings and diluted earnings per share on a non-GAAP basis were $883 million and $0.79, an increase of 9 percent and 10 percent, respectively, over the same period in the prior year.

"I am pleased with our solid first quarter performance and the progress it represents toward fulfilling our full year commitments," said Bill Hawkins, Medtronic chairman and chief executive officer. "I am confident that our efforts to fuel innovation and develop a strong product pipeline positions us well for sustained growth during the remainder of the fiscal year and beyond."

Revenue outside the United States of $1.542 billion grew 6 percent compared to the same period last year, or 16 percent on a constant currency basis, accounting for 39 percent of Medtronic's worldwide revenue.

Cardiac Rhythm Disease Management Cardiac Rhythm Disease Management (CRDM) revenue of $1.337 billion grew nearly 3 percent, or 7 percent after adjusting for an unfavorable $53 million foreign exchange impact.Revenue from implantable cardioverter defibrillators was $775 million, while pacing revenue was $536 million in the quarter.Outside the United States, CRDM revenue grew 10 percent on a constant currency basis, driven by significant growth in Europe and China.

Spinal Spinal revenue of $915 million grew 7 percent, or 8 percent after adjusting for an unfavorable $17 million foreign exchange impact. Sales of Core Spinal products, which includes Kyphon, increased 11 percent and Spinal revenue outside of the United States increased 24 percent, both on a constant currency basis. Biologics revenue remained flat when compared to the same period last year on a constant currency basis.

CardioVascular CardioVascular revenue of $689 million grew 9 percent, or 15percent after adjusting for an unfavorable $37 million currency translation impact. Growth in the CardioVascular business was driven by strong global performance in both the Endovascular and Structural Heart Disease product lines, which grew 41 percent and 16 percent, respectively, on a constant currency basis. The business unit launched the Endeavor® Drug-eluting Stent in Japan during the quarter which helped drive Coronary revenue to $353 million for the quarter.

Neuromodulation Neuromodulation revenue grew 7 percent to $373 million, or 11percent after adjusting for an unfavorable $13 million currency translation impact. This growth was fueled by strong sales of the InterStim®Therapy, Activa® Deep Brain Stimulation Therapy and the launch of Activa PC and RC, which are now available in both the United States and Europe.

Diabetes Diabetes revenue of $295 million grew 10 percent, or 15percent after adjusting for an unfavorable $14 million currency translation impact, on strong U.S. insulin pump and continuous glucose monitoring (CGM) product sales, as well as sales of consumables in Europe. International sales grew 14 percent on a constant currency basis over the same quarter last year. During the quarter, the business unit launched the Paradigm Veo pump in the United Kingdom and Ireland, the first semi-closed loop product, extending its lead as the only company with a proprietary CGM Sensor Augmented Pump.

Surgical Technologies Revenue from Surgical Technologies reached $227 million, up 12 percent, or 16percent after adjusting for an unfavorable $7 million currency translation impact. Revenue in the business unit grew on sales of the monitoring product line, the launch of NIM 3.0 a new nerve integrity monitor and strong ear, nose and throat and neurological power disposable sales. In Europe, sales of navigation equipment used in both brain and spinal surgery procedures were also strong during the quarter.

Physio-Control Physio-Control reported $97 million in revenue, up 3 percent, or 7 percent after adjusting for an unfavorable $4 million currency translation impact. The launch of the LIFEPAK 15 monitor/defibrillator contributed to revenue growth in the quarter.

"Our solid performance across all businesses demonstrates the strength of our product portfolio and geographic diversity," said Hawkins. "Our focused efforts to provide innovative solutions to the growing and global challenge of chronic disease are enabling us to bring our therapies to more people than ever before."

Webcast Information Medtronic will host a webcast today, Aug. 25, at 8 a.m. EDT (7 a.m. CDT), to provide information about its businesses for the public, analysts and news media. This quarterly webcast can be accessed by clicking on the Investor Relations link on the Medtronic home page at www.medtronic.com and this earnings release will be archived at www.medtronic.com/newsroom. Within 24 hours, a replay of the webcast and a transcript of the company's prepared remarks will be available in the "Events and Presentations" section of the Investor Relations homepage.

About Medtronic Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, alleviating pain, restoring health and extending life for people with chronic disease. Its Internet address is www.medtronic.com.

This press release contains forward-looking statements regarding our operating momentum, new products and other developments, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, general economic conditions and other risks and uncertainties described in Medtronic's Annual Report on Form 10-K for the year ended April 24, 2009. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements. Unless otherwise noted, all comparisons made in this news release are on an "as reported basis," not on a constant currency basis, and references to quarterly figures increasing or decreasing are in comparison to the first quarter of fiscal year 2009.

  MEDTRONIC, INC.                                                                                                                                  REVENUE BY OPERATING SEGMENT - WORLD WIDE                                                                                                        (Unaudited)                                                                                                                                                                                                                                                                                       ($ millions)                                                                                                                                                                         FY09       FY09       FY09       FY09       FY09         FY10          FY10    FY10    FY10    FY10                                              QTR 1      QTR 2      QTR 3      QTR 4      Total        QTR 1         QTR 2   QTR 3   QTR 4   Total         REPORTED REVENUE :                                                                                                                                                                                                                                                                                CARDIAC RHYTHM DISEASE MANAGEMENT   $  1,303   $  1,242   $  1,169   $  1,300   $  5,014     $  1,337      $  -    $  -    $  -    $  1,337      Pacing Systems                         526        506        457        494        1,984        536           -       -       -       536        Defibrillation Systems                 764        724        694        780        2,962        775           -       -       -       775        Other                                  13         12         18         26         68           26            -       -       -       26                                                                                                                                                          SPINAL                              $  859     $  829     $  832     $  881     $  3,400     $  915        $  -    $  -    $  -    $  915        Core Spinal                            638        631        627        666        2,560        696           -       -       -       696        Biologics                              221        198        205        215        840          219           -       -       -       219                                                                                                                                                         CARDIOVASCULAR                      $  631     $  596     $  565     $  644     $  2,437     $  689        $  -    $  -    $  -    $  689        Coronary                               349        315        296        332        1,292        353           -       -       -       353        Structural Heart                       195        186        170        195        747          218           -       -       -       218        Endovascular                           87         95         99         117        398          118           -       -       -       118                                                                                                                                                         NEUROMODULATION                     $  348     $  343     $  354     $  389     $  1,434     $  373        $  -    $  -    $  -    $  373                                                                                                                                                         DIABETES                            $  269     $  272     $  277     $  296     $  1,114     $  295        $  -    $  -    $  -    $  295                                                                                                                                                         SURGICAL TECHNOLOGIES               $  202     $  213     $  207     $  235     $  857       $  227        $  -    $  -    $  -    $  227                                                                                                                                                         PHYSIO-CONTROL                      $  94      $  75      $  90      $  84      $  343       $  97         $  -    $  -    $  -    $  97                                                                                                                                                          TOTAL                               $  3,706   $  3,570   $  3,494   $  3,829   $  14,599    $  3,933      $  -    $  -    $  -    $  3,933                                                                                                                                                       ADJUSTMENTS :                                                                                                                                                                                                                                                                                     CURRENCY IMPACT (1)                 $  -       $  -       $  -       $  -       $  -         $  (145   )   $  -    $  -    $  -    $  (145   )                                                                                                                                                    COMPARABLE OPERATIONS (1)           $  3,706   $  3,570   $  3,494   $  3,829   $  14,599    $  4,078      $  -    $  -    $  -    $  4,078                                                                                                                                                        -------------------------------------------------------------------------------  

(1) Medtronic management believes that in order to properly understand Medtronic's short-term and long-term financial trends, investors may wish to consider the impact of foreign currency translation on revenue. In addition, Medtronic management uses results of operations before currency translation to evaluate the operational performance of the Company and as a basis for strategic planning. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP.

Note: The data in this schedule has been intentionally rounded to the nearest million and therefore the quarterly revenue may not sum to the fiscal year to date revenue.

  MEDTRONIC, INC.