Guarantor and Non-Guarantor Financial Statements.

Each of Biomet’s existing wholly owned domestic subsidiaries fully, unconditionally, jointly, and severally guarantee the senior notes on a senior unsecured basis and the senior subordinated notes on a senior subordinated unsecured basis, in each case to the extent such subsidiaries guarantee Biomet’s senior secured cash flow facilities. LVB is neither an issuer nor guarantor of the notes described in Note 7.

The following financial information presents the composition of the combined guarantor subsidiaries:

CONDENSED CONSOLIDATING BALANCE SHEETS



	August 31, 2014
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	61.0	$	131.0	$	—		$	192.0
Accounts receivable, net	—		272.8		257.6		—			530.4
Inventories, net	—		394.5		329.7		—			724.2
Deferred income taxes	—		116.7		32.5		—			149.2
Prepaid expenses and other	—		129.0		55.4		—			184.4
Total current assets	—		974.0		806.2		—			1,780.2
Property, plant and equipment, net	—		422.6		300.7		—			723.3
Investments	—		12.8		15.4		—			28.2
Investment in subsidiaries	7,849.2		—		—		(7,849.2		)	—
Intangible assets, net	—		2,681.2		669.6		—			3,350.8
Goodwill	—		3,146.5		481.3		—			3,627.8
Other assets	—		75.6		11.2		—			86.8
Total assets	$	7,849.2	$	7,312.7	$	2,284.4	$	(7,849.2	)	$	9,597.1
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	132.8	$	—	$	—	$	—		$	132.8
Accounts payable	—		74.9		45.5		—			120.4
Accrued interest	36.7		—		0.1		—			36.8
Accrued wages and commissions	—		62.6		56.4		—			119.0
Other accrued expenses	—		249.8		66.6		—			316.4
Total current liabilities	169.5		387.3		168.6		—			725.4
Long-term debt	5,603.5		—		—		—			5,603.5
Deferred income taxes	—		782.9		156.4		—			939.3
Other long-term liabilities	—		167.0		85.7		—			252.7
Total liabilities	5,773.0		1,337.2		410.7		—			7,520.9
Shareholder’s equity	2,076.2		5,975.5		1,873.7		(7,849.2		)	2,076.2
Total liabilities and shareholder’s equity	$	7,849.2	$	7,312.7	$	2,284.4	$	(7,849.2	)	$	9,597.1



	May 31, 2014
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	101.8	$	145.8	$	—		$	247.6
Accounts receivable, net	—		284.6		292.7		—			577.3
Inventories	—		374.3		319.1		—			693.4
Deferred income taxes	—		117.9		32.0		—			149.9
Prepaid expenses and other	—		128.0		74.9		—			202.9
Total current assets	—		1,006.6		864.5		—			1,871.1
Property, plant and equipment, net	—		412.4		303.6		—			716.0
Investments	—		11.9		0.6		—			12.5
Investment in subsidiaries	7,882.9		—		—		(7,882.9		)	—
Intangible assets, net	—		2,740.1		699.5		—			3,439.6
Goodwill	—		3,146.7		487.7		—			3,634.4
Other assets	—		81.5		11.5		—			93.0
Total assets	$	7,882.9	$	7,399.2	$	2,367.4	$	(7,882.9	)	$	9,766.6
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	133.1	$	—	$	—	$	—		$	133.1
Accounts payable	—		86.9		48.4		—			135.3
Accrued interest	53.3		—		0.1		—			53.4
Accrued wages and commissions	—		90.0		78.7		—			168.7
Other accrued expenses	—		259.4		95.3		—			354.7
Total current liabilities	186.4		436.3		222.5		—			845.2
Long-term debt	5,587.3		—		—		—			5,587.3
Deferred income taxes	—		811.3		157.3		—			968.6
Other long-term liabilities	—		170.8		85.5		—			256.3
Total liabilities	5,773.7		1,418.4		465.3		—			7,657.4
Shareholder’s equity	2,109.2		5,980.8		1,902.1		(7,882.9		)	2,109.2
Total liabilities and shareholder’s equity	$	7,882.9	$	7,399.2	$	2,367.4	$	(7,882.9	)	$	9,766.6

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)



	Three Months Ended August 31, 2014
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	508.7		$	266.1		$	—		$	774.8
Cost of sales	—			206.2			9.7			—			215.9
Gross profit	—			302.5			256.4			—			558.9
Selling, general and administrative expense	—			231.2			130.5			—			361.7
Research and development expense	—			31.4			11.4			—			42.8
Amortization	—			55.6			16.3			—			71.9
Operating income	—			(15.7		)	98.2			—			82.5
Interest expense	80.1			—			—			—			80.1
Other (income) expense	—			5.2			(9.4		)	—			(4.2		)
Income (loss) before income taxes	(80.1		)	(20.9		)	107.6			—			6.6
Tax expense (benefit)	(30.4		)	(7.9		)	37.6			—			(0.7		)
Equity in earnings of subsidiaries	57.0			—			—			(57.0		)	—
Net income (loss)	$	7.3		$	(13.0	)	$	70.0		$	(57.0	)	$	7.3
Other comprehensive income (loss)	$	(44.2	)	$	0.1		$	(47.9	)	$	47.8		$	(44.2	)
Total comprehensive income (loss)	$	(36.9	)	$	(12.9	)	$	22.1		$	(9.2	)	$	(36.9	)


	Three Months Ended August 31, 2013
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	481.5		$	249.2		$	—		$	730.7
Cost of sales	—			180.7			27.3			—			208.0
Gross profit	—			300.8			221.9			—			522.7
Selling, general and administrative expense	—			193.9			119.4			—			313.3
Research and development expense	—			27.9			9.6			—			37.5
Amortization	—			61.3			14.2			—			75.5
Operating income (loss)	—			17.7			78.7			—			96.4
Interest expense	87.0			—			0.6			—			87.6
Other (income) expense	—			(2.3		)	4.5			—			2.2
Income (loss) before income taxes	(87.0		)	20.0			73.6			—			6.6
Tax expense (benefit)	(33.1		)	7.6			1.0			—			(24.5		)
Equity in earnings of subsidiaries	85.0			—			—			(85.0		)	—
Net income (loss)	$	31.1		$	12.4		$	72.6		$	(85.0	)	$	31.1
Other comprehensive income (loss)	$	13.5		$	—		$	4.7		$	—		$	18.2
Total comprehensive income (loss)	$	44.6		$	12.4		$	77.3		$	(85.0	)	$	49.3

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOW



	Three Months Ended August 31, 2014
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	(17.2	)	$	(2.8	)	$	22.4		$	—	$	2.4
Purchases of investments	—			—			(16.3		)	—		(16.3		)
Capital expenditures	—			(38.0		)	(22.8		)	—		(60.8		)
Other	—			(0.3		)	—			—		(0.3		)
Cash flows provided by (used in) investing activities	—			(38.3		)	(39.1		)	—		(77.4		)
Proceeds under revolvers	205.0			—			—			—		205.0
Tender/retirement of senior notes due 2017 and term loans	(180.0		)	—			—			—		(180.0		)
Other	(7.8		)	0.3			—			—		(7.5		)
Cash flows provided by (used in) financing activities	17.2			0.3			—			—		17.5
Effect of exchange rate changes on cash	—			—			1.9			—		1.9
Increase (decrease) in cash and cash equivalents	—			(40.8		)	(14.8		)	—		(55.6		)
Cash and cash equivalents, beginning of period	—			101.8			145.8			—		247.6
Cash and cash equivalents, end of period	$	—		$	61.0		$	131.0		$	—	$	192.0

	Three Months Ended August 31, 2013
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	5.8		$	(36.9	)	$	81.9		$	—	$	50.8
Capital expenditures	—			(35.3		)	(11.2		)	—		(46.5		)
Other	—			(0.4		)	0.2			—		(0.2		)
Cash flows provided by (used in) investing activities	—			(35.7		)	(11.0		)	—		(46.7		)
Cash flows provided by (used in) financing activities	(5.8		)	0.3			(7.7		)	—		(13.2		)
Effect of exchange rate changes on cash	—			—			(1.1		)	—		(1.1		)
Decrease in cash and cash equivalents	—			(72.3		)	62.1			—		(10.2		)
Cash and cash equivalents, beginning of period	—			35.3			320.3			—		355.6
Cash and cash equivalents, end of period	$	—		$	(37.0	)	$	382.4		$	—	$	345.4