-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PikbhpkmTZStLxEtzzuydNc1lzdwdCgsIzzyuak+BArltBt0hODtxWg0gXJRgwKm wHyNpfsdDFzj67rLzfGsWg== 0001047469-05-024865.txt : 20051017 0001047469-05-024865.hdr.sgml : 20051017 20051017172133 ACCESSION NUMBER: 0001047469-05-024865 CONFORMED SUBMISSION TYPE: SC 14D9 PUBLIC DOCUMENT COUNT: 16 FILED AS OF DATE: 20051017 DATE AS OF CHANGE: 20051017 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ADVANCED NEUROMODULATION SYSTEMS INC CENTRAL INDEX KEY: 0000351721 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 751646002 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D9 SEC ACT: 1934 Act SEC FILE NUMBER: 005-33902 FILM NUMBER: 051141518 BUSINESS ADDRESS: STREET 1: 6901 PRESTON RD. CITY: PLANO STATE: TX ZIP: 75024 BUSINESS PHONE: 9723098000 MAIL ADDRESS: STREET 1: 6901 PRESTON RD. CITY: PLANO STATE: TX ZIP: 75024 FORMER COMPANY: FORMER CONFORMED NAME: QUEST MEDICAL INC DATE OF NAME CHANGE: 19920703 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ADVANCED NEUROMODULATION SYSTEMS INC CENTRAL INDEX KEY: 0000351721 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 751646002 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D9 BUSINESS ADDRESS: STREET 1: 6901 PRESTON RD. CITY: PLANO STATE: TX ZIP: 75024 BUSINESS PHONE: 9723098000 MAIL ADDRESS: STREET 1: 6901 PRESTON RD. CITY: PLANO STATE: TX ZIP: 75024 FORMER COMPANY: FORMER CONFORMED NAME: QUEST MEDICAL INC DATE OF NAME CHANGE: 19920703 SC 14D9 1 a2164186zsc14d9.htm SC 14D9
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


SCHEDULE 14D-9
(RULE 14d-101)
SOLICITATION/RECOMMENDATION STATEMENT
UNDER SECTION 14(d)(4) OF THE SECURITIES EXCHANGE ACT OF 1934


Advanced Neuromodulation Systems, Inc.
(Name of Subject Company)


Advanced Neuromodulation Systems, Inc.
(Name of Person Filing Statement)


COMMON STOCK, PAR VALUE $.05 PER SHARE
(INCLUDING THE ASSOCIATED COMMON STOCK PURCHASE RIGHTS)
(Title of Class of Securities)

801003104
(CUSIP Number of Class of Securities)

Christopher G. Chavez
President and Chief Executive Officer
Advanced Neuromodulation Systems, Inc.
6901 Preston Road
Plano, Texas 75024
(972) 309-8000
(Name, Address and Telephone Number of Person Authorized to
Receive Notice and Communications on Behalf of the Person(s) Filing Statement)

With copies to each of:

Kenneth G. Hawari
General Counsel and Executive Vice President
Advanced Neuromodulation Systems, Inc.
6901 Preston Road
Plano, Texas 75024-2508
(972) 309-8000
  Joseph Cialone, II
Baker Botts L.L.P.
One Shell Plaza
910 Louisiana
Houston, TX 77002-4995
(713) 229-1234
ý
Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.





EXHIBIT INDEX

        The following preliminary communications made prior to commencement are attached hereto:

Exhibit Number
  Description

99.1   Letter to employees of the subject company dated October 17, 2005 with attached fact sheet.

99.2

 

Employee Questions and Answers, dated October 17, 2005.

99.3

 

Subject company fact sheet.

99.4

 

Customer Letter, dated October 17, 2005.

99.5

 

Form of Clinical Studies Letter, dated October 17, 2005.

99.6

 

Form of Supplier Letter, dated October 17, 2005.



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EXHIBIT INDEX
EX-99.1 2 a2164186zex-99_1.htm EXHIBIT 99.1

Exhibit 99.1

GRAPHIC

October 17, 2005

To My Fellow Employees:

        ANS has accepted an offer to be acquired and operate as an independent division of St. Jude Medical, Inc. It's important to know that this merger is not focused on opportunities to consolidate, but rather brings new resources to help us tap our incredible market opportunity and accelerate the growth of our business. For employees looking for new challenges, this is great news!

        ANS has become a valuable company with a terrific team of co-workers, a culture grounded on integrity, and the best products on the market—products that have helped thousands of patients with disabling chronic pain and nervous system disorders. We've demonstrated our ability to innovate and compete, and have helped show the world the enormous potential of neuromodulation. St. Jude recognized our strategic value and asked us to consider a merger offer. After careful consideration, we agreed because we firmly believe it serves the best interest of our employees, customers and shareholders.

        This marriage of two great companies with common values allows us to remain a powerful force in the neuromodulation market against formidable competitors. St. Jude Medical is committed to helping us accelerate our investment in sales, marketing, product development, incubation efforts and product approvals. We will continue with our same benefit programs, practices and policies, but will also take advantage of the larger scope of the entire company to make operational improvements and expand into new markets.

        While our mission remains the same—improve the quality of life for people—we can now accomplish this mission better and faster! On behalf of the entire leadership team, thank you for your commitment to getting ANS to this point. I look forward to working with you as we continue to make the ANS journey an incredibly successful one.

Respectfully,

GRAPHIC

Chris Chavez
President and Chief Executive Officer


Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.

A Sampling of Our Product Line

GRAPHIC   GRAPHIC   GRAPHIC   GRAPHIC   GRAPHIC
Epic™ HF CRT-D   QuickSite® Bipolar Left-Ventricular Lead   SJM Biocor® Valve   Premere™ PFO Closure System*   EnSite® System Display Workstation

*Currently not available in the U.S.

St. Jude Medical Fact Sheet

Mission

        St. Jude Medical's mission is to make life better through excellence in medical device technology and services. The Company designs, manufactures, and distributes cardiovascular medical devices of the highest

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quality, offering physicians, patients, and payers outstanding clinical performance and demonstrated economic value.

Company Information   Global Headquarters: St. Paul, Minnesota
Internet: www.sjm.com
Stock Exchange: New York Stock Exchange (NYSE) under "STJ" symbol

2004 Net Sales

 

$2.3 billion

Founded

 

1976 in St. Paul, Minnesota

Product Portfolio

 

St. Jude Medical's product portfolio includes cardiac resynchronization therapy (CRT) devices, implantable cardioverter defibrillators (ICD), pacemakers, specialty catheters, vascular closure devices, and heart valve replacement and repair products.

Global Reach

 

The Company has more than 20 principal operations and manufacturing facilities worldwide, with products sold in more than 130 countries.

Employees

 

Approximately 9,000 employees worldwide

St. Jude Medical Divisions

Cardiac Rhythm Management Division

        St. Jude Medical offers new cardiac resynchronization therapy devices for heart failure, plus state-of-the-art implantable cardioverter defibrillators, advanced pacemakers, leads, introducer systems, and device programmers used to treat certain cardiac arrhythmias.

Atrial Fibrillation Division

        The Atrial Fibrillation (AF) Division, established in 2005, develops products to diagnose, treat, and seek a cure for atrial fibrillation. The AF Division's product portfolio includes sophisticated catheters offering novel approaches for managing AF, and a proprietary surgical ablation device using High Intensity Focused Ultrasound (HIFU) energy.

Cardiology Division

        Building on the success of its industry-leading Angio-Seal™ vascular closure device, St. Jude Medical established the Cardiology Division in 2005 to expand its product portfolio for interventional cardiologists. In addition to its innovative access and closure technologies, St. Jude Medical offers new products to address the therapeutic area of cardiology.

Cardiac Surgery Division

        St. Jude Medical develops and manufactures the gold standard St. Jude Medical® mechanical heart valve, plus a growing portfolio of stented and stentless tissue valves and heart valve repair products.

St. Jude Medical US Division

        St. Jude Medical supports its U.S. customers with approximately 1,500 professionals in the field covering sales, education, and implant and other clinical procedure support. The US Division has one of the largest sales organizations in the industry, supplying high-quality cardiovascular products to customers around the United States.

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St. Jude Medical International Division

        Approximately 2,000 people on St. Jude Medical's international team sell the entire St. Jude Medical product line in over 130 countries worldwide. Headquartered in St. Paul, Minnesota, USA, the International Division also has major offices located in Hong Kong and Brussels, Belgium.

GRAPHIC

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EX-99.2 3 a2164186zex-99_2.htm EXHIBIT 99.2
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Exhibit 99.2

ANS and St. Jude Medical
Announce Definitive Agreement
Employee Questions & Answers

October 17, 2005

        We recognize that change can bring with it concerns about the future. We want to respond to questions we anticipate you might have and establish a forum for ongoing communication. We want you to feel confident and enthusiastic about an even brighter future!

        Q—Often, mergers and acquisitions result in consolidation and even layoffs. What can we expect?

        A—In this case, the goal is entirely different. This combination allows St. Jude Medical to enter ANS market space and provides new resources to accelerate our sales growth and realize our full potential. This transaction is about growth. We will remain an independent division with the ability to increase our investment in sales, marketing, product development, and clinical trials to more quickly achieve our goals.

        Q—Why didn't St. Jude Medical just develop its own products to get into the market?

        A—It takes a great deal of time to develop and commercialize implantable medical devices, not to mention the patents held by ANS. By aligning with ANS, St. Jude Medical could quickly take advantage of the great market opportunity that neuromodulation represents.

        Q—Who made the final decision to accept this offer?

        A—Our Board of Directors gave unanimous approval. In light of today's competitive landscape, the Board carefully considered what the merger could do for ANS to accelerate growth, the impact it would have on employees, customers and the share price. We believe it was absolutely the right decision and makes what was an incredibly bright future for ANS, even brighter!

        Q—What happens if not enough ANS shareholders decide to sell their shares to St. Jude Medical?

        A—We believe this is extremely unlikely, given the good value offered for the company.

        Q.—What will happen to my stock options to purchase ANS common stock?

        A—Each outstanding option to purchase ANS common stock that is vested at the effective time of the merger will be cancelled and the option holder will receive a cash payment equal to the difference between $61.25 (the price per share paid by St. Jude Medical in the tender offer) and the per share exercise price under the option agreement.

        Each outstanding option to purchase ANS common stock that is not vested at the effective time of the merger will be assumed by St. Jude Medical and converted into an option to purchase common stock of St. Jude Medical in accordance with the exchange ratio set forth in the Agreement and Plan of Merger. Because of how the exchange ratio works, your new option will be to purchase a greater number of shares of St. Jude Medical common stock, at a lower per share exercise price, as compared to the number of shares of ANS common stock, and the exercise price, under your current option.

        Q—Will our policies be changing to conform to St. Jude Medical?

        A—We will continue to run our business autonomously and, as always, will be evolving and changing policies and practices to meet the changing requirements for the business and certain governing bodies.

GRAPHIC   GRAPHIC

        Q—Will my benefits change?

        A—There is no language in the agreement to change benefits, so you will continue to receive your same ANS benefits. If, over time, it makes sense to take advantage of combining any benefit plans, we will certainly look at these opportunities.

        Q—How will reporting relationships change related to St. Jude Medical?

        A—Chris will report to Dan Starks, Chairman, President and CEO of St. Jude Medical and will also continue to lead ANS as an independent division of St. Jude Medical. Chris' direct reports will continue to report to him, and will also be creating relationships with their counterparts at St. Jude Medical to exchange ideas, take advantage of different technologies, and share resources where it makes sense.

        Q—What new career opportunities will be available?

        A—As ANS accelerates its growth, we expect that there will be many new opportunities, along with the broader opportunities within St. Jude Medical.

        Q—I heard that St. Jude Medical has extensive manufacturing capabilities. Will we be moving our assembly operations there to save money?

        A—There are no plans to change. We believe ANS has an excellent production team between our operations in HDI, Portland and Plano, including special expertise unduplicated by St. Jude Medical.

        Q—As a Territory Sales Manager, I am greatly concerned that the commission plan could change to align with the way St. Jude Medical compensates their sales people for success. What has been discussed in this regard?

        A—ANS will continue with its existing compensation plans, including commission plans. If changes take place in the future, it will be determined by the ANS sales management team.

        Q—How will this deal affect our relationship with Wall Street?

        A—We will have the freedom to focus on building long-term value and have less pressure to meet earnings numbers for Wall Street each quarter.

        Q—What other immediate benefits will our relationship with St. Jude Medical provide?

        A—Clearly, the first thing that comes to mind is St. Jude Medical's international infrastructure for sales and marketing. Our people have done a terrific job growing the international market but we simply haven't been able to add enough people to compete at the same level of Medtronic and Boston Scientific because of financial constraints. This will change as we add new resources while also taking advantage of resources St. Jude Medical already has in place around the world. St. Jude Medical also has some microelectronics technology that they will be sharing, as well as their resources to help us accelerate clinical studies.

        Q—How can we learn more about St. Jude Medical?

        A—The fact sheet contains an overview of the company. We encourage you to visit St Jude's Web site at www.sjm.com. Also, watch for additional information we'll be providing over the next several weeks.

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Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.

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ANS and St. Jude Medical Announce Definitive Agreement Employee Questions & Answers
EX-99.3 4 a2164186zex-99_3.htm EXHIBIT 99.3
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Exhibit 99.3


ANS to be Acquired by St. Jude Medical

        Advanced Neuromodulation Systems (ANS) is at an exciting crossroads in our company's history. Together with St. Jude Medical, we now have the opportunity to accelerate our capabilities to serve customers with life-changing products and compete at the highest levels in our ever-expanding marketplace.

        St. Jude Medical, Inc. (NYSE:STJ) and Advanced Neuromodulation Systems, Inc. (NASDAQ:ANSI) announced on October 16, 2005 that the Boards of Directors of both companies have unanimously approved a definitive agreement whereby St. Jude Medical will acquire ANS for $61.25 per ANS share in cash, for a total of approximately $1.3 billion.

About St. Jude Medical

        St. Jude Medical is a publicly traded company headquartered in St. Paul, Minnesota, with approximately 9,000 employees worldwide. Since the Company's founding in 1976, St. Jude Medical has had a single mission: to make life better through excellence in medical device technology and services. Today, St. Jude Medical develops, manufactures and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiac surgery, cardiology and atrial fibrillation therapeutic areas. The Company has operations in more than 130 countries. St. Jude Medical had $2.3 billion in revenue for fiscal year 2004, and a market capitalization of around $17 billion. For more information about St. Jude Medical, please visit the Company's website at www.sjm.com.

A Win-Win Relationship

        ANS is positioned as a leading player in the growing billion dollar neuromodulation market, with plans to leverage our strong technology platform into multiple indications and market segments. While ANS has always operated with the philosophy of building value independently, we had an obligation to listen to St. Jude Medical's proposal on behalf of our shareholders, customers and employees.

        Among the reasons we have agreed to the tender offer presented by St. Jude Medical are:

    Shareholder Returns: The price offered to our shareholders was a good one.

    Competitive Strength: Two major competitors are investing heavily to be broad-based players in the market. This arrangement with St. Jude Medical significantly increases our organizational strength and allows ANS to more comprehensively address our significant commercial opportunities with increased investment in sales, marketing, product development, incubation and clinical studies.

    Complementary Corporate Assets: There is virtually no overlap in the markets served by St. Jude Medical and ANS today. However, there is a significant ability to leverage technology and infrastructure capabilities with St. Jude Medical, such as tapping into St. Jude's global marketing and sales infrastructure, clinical trials capabilities, and expertise in microelectronics and active implantables.

    Autonomy and Continued Focus: ANS will become an independent division and preserve its entrepreneurial culture, innovative management team and committed employee base that fueled our impressive growth to this point. With greatly expanded resources and the ability to focus on long-term performance, ANS will accelerate its pace of innovation for customers, continue to generate shareholder value, and create new opportunities for employees to grow with the organization.

What's Next

    Under the terms of the agreement, St. Jude Medical will commence a tender offer for all of the outstanding shares of ANS common stock no later than Tuesday, October 25, 2005. Following successful completion of the tender, holders of any remaining outstanding shares of ANS will be entitled to receive cash of $61.25 per share of ANS common stock upon the closing of the merger.

    The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close by the end of the year.

    ANS will become a newly created division of St. Jude Medical and Chris Chavez will be President of the ANS Division.

    ANS will remain headquartered in Plano, Texas.

    ANS will continue to be led by the same leadership and management team.

    As summarized in the ANS CREDO, we remain committed to the same values and organizational culture, which includes Integrity, Customer Focus, Innovation, Quality, Employee Development and Social Responsibility.

    We will continue to manage our business the same way we have historically, but with a more ambitious scope, accelerating investment in sales, marketing, product development, incubation and clinical studies.

    We will systematically identify and prioritize opportunities to leverage the capabilities and strengths of St. Jude Medical.

        In short, ANS can leapfrog the resource obstacles of a company our size and realize our true market potential much more quickly and dramatically. Because we entered the agreement with St. Jude Medical from a position of strength, the result is truly a win-win situation for shareholders, customers, employees and strategic business partners. Our bright future is now even brighter!

2


Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.

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EX-99.4 5 a2164186zex-99_4.htm EXHIBIT 99.4

Exhibit 99.4

Customer Letter

October 17, 2005

Dear Dr.                         :

        As you may know, Advanced Neuromodulation Systems (ANS) has accepted an offer to be acquired and operate as an independent division of St. Jude Medical, Inc. With the assistance of your excellent clinical work, we've demonstrated to the world the enormous potential of neuromodulation. St. Jude Medical recognized this strategic value and asked us to consider a merger offer. After careful consideration, the ANS Board of Directors unanimously approved this action because we firmly believe it serves the best interest of our customers, employees and investors. The transaction, publicly announced on October 16, is subject to customary closing conditions and regulatory approvals, and is expected to close by the end of the year.

        For nearly a decade, ANS has been dedicated to supporting physicians as they provide world-class patient care to thousands of chronic pain patients throughout the world. With your help, we have brought new technology to the market, expanded the field of neuromodulation, and stimulated a competitive atmosphere that has benefited clinical practice and patient care. Now, St. Jude Medical is committed to helping us accelerate our investment in clinical research, development and approval of new products and indications. We will be better positioned to fulfill our long-term mission to help you treat patients with ever-improving products and therapies.

        I am pleased to report that my entire management team will remain at ANS to lead the company and preserve our customer values, entrepreneurial culture, and committed employee base that fueled our impressive growth to this point. With greatly expanded resources and the ability to focus on long-term financial performance, ANS will strive to accelerate its pace of innovation while we significantly expand our service capability.

        Please be assured that our values and our Credo have not changed and are aligned solidly with those of St. Jude Medical. We appreciate your continued support and will never take you or your business for granted, because we know you have a choice! We look forward to serving you and your patients in the future.

Respectfully,

Chris Chavez
President and CEO
Advanced Neuromodulation Systems, Inc.


Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.

Enclosed:
News Release
Fact Sheet



EX-99.5 6 a2164186zex-99_5.htm EXHIBIT 99.5

Exhibit 99.5

Clinical Studies Letter

October 17, 2005

Dear Dr.                         :

        As you may know, Advanced Neuromodulation Systems (ANS) has accepted an offer to be acquired and operate as an independent division of St. Jude Medical, Inc. Together with your assistance in our active clinical studies program, we've demonstrated to the world the enormous potential of neuromodulation. St. Jude Medical recognized this strategic value and asked us to consider a merger offer. After careful consideration, the ANS Board of Directors unanimously approved the action because we firmly believe it serves the best interest of our customers, employees, investors and strategic partners. The transaction, publicly announced on October 16, is subject to customary closing conditions and regulatory approvals, and is expected to close by the end of the year.

        While this is exciting news, our daily operations and clinical trials program will continue uninterrupted. With your help, we have brought new technology to the market, expanded the field of neuromodulation, and invigorated a competitive atmosphere that has benefited clinical practice and patient care. Now, St. Jude Medical is committed to helping us accelerate our investment in clinical research, development and regulatory approval of new products and indications. We will be better positioned to fulfill our long-term mission to help treat patients with ever-improving products and therapies.

        I am pleased to report that my entire management team will remain at ANS to lead the company and preserve our customer values, entrepreneurial culture, and committed employee base that fueled our impressive growth to this point. With greatly expanded resources and the ability to focus on long-term financial performance, ANS will accelerate its pace of innovation while we significantly expand our service capability.

        Please be assured that our values and our Credo have not changed and are aligned solidly with those of St. Jude Medical. We appreciate your continued support and look forward to serving you and your patients in the future.

Respectfully,

Chris Chavez
President and CEO
Advanced Neuromodulation Systems, Inc.

Enclosed:
News Release
Fact Sheet


Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.



EX-99.6 7 a2164186zex-99_6.htm EXHIBIT 99.6

Exhibit 99.6

Supplier Letter

October 17, 2005

Dear                        :

        As you may know, Advanced Neuromodulation Systems (ANS) has accepted an offer to be acquired and operate as an independent division of St. Jude Medical, Inc. Together with you as a valued supplier, we've demonstrated to the world the enormous potential of neuromodulation. St. Jude Medical recognized this strategic value and asked us to consider a merger offer. After careful consideration, the ANS Board of Directors unanimously approved this action because we firmly believe it serves the best interest of our customers, employees, investors and strategic partners. The transaction, publicly announced on October 16, is subject to customary closing conditions and regulatory approvals, and is expected to close by the end of the year.

        While this is exciting news, our daily operations will continue uninterrupted. With your help, we have brought new technology to the market, expanded the field of neuromodulation, and stimulated a competitive atmosphere that has benefited clinical practice and patient care. Now, St. Jude Medical is committed to helping us accelerate our investment in clinical research, development and approval of new products and indications. We will be better positioned to fulfill our long-term mission to help treat patients with ever-improving products and therapies.

        I am pleased to report that my entire management team will be remain at ANS to lead the company and preserve our customer values, entrepreneurial culture, and committed employee base that fueled our impressive growth to this point. With greatly expanded resources and the ability to focus on long-term financial performance, ANS will accelerate its pace of innovation while we significantly expand our service capability.

        Please be assured that our values and our Credo have not changed and are aligned solidly with those of St. Jude Medical. We appreciate your continued support and look forward to our ongoing relationship in the future.

Respectfully,

Chris Chavez
President and CEO
Advanced Neuromodulation Systems, Inc.

Enclosed:
News Release
Fact Sheet


Forward-Looking Statements

        Any statements made regarding the proposed transaction between St. Jude Medical, Inc. and Advanced Neuromodulation Systems, Inc., the expected timetable for completing the transaction, successful integration of the business, benefits of the transaction, potential clinical success, regulatory approvals, anticipated future product launches, revenues, earnings, expected repayment of debt, market shares, market growth, market segment growth, new indications, and any other statements regarding St. Jude Medical's or ANS's future expectations, beliefs, goals or prospects are forward-looking statements which are subject to risks and uncertainties, such as those described under or incorporated by reference in Item 8.01 of St. Jude Medical's Current Report on Form 8-K filed on October 17, 2005, in Item 8.01 of ANS's Current Report on Form 8-K filed on October 17, 2005, and in the Outlook and Uncertainties section in ANS's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (see page 25) and ANS's Annual Report on Form 10-K for the year ended December 31, 2004 (see page 26). Actual results may differ materially from anticipated results.

Additional Information

        This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of ANS. St. Jude Medical will be filing a tender offer statement with the Securities and Exchange Commission (SEC) and ANS will be filing a solicitation/recommendation statement with respect to the offer. ANS shareholders are advised to read the tender offer statement regarding the acquisition of ANS referenced in this news release, and the related solicitation/recommendation statement, when those statements are made available to them. The tender offer statement and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect the offer. These documents will be made available to all shareholders of ANS at no expense to them. These documents will also be available at no charge on the SEC's web site at www.sec.gov. Shareholders may also obtain copies of these documents without charge by requesting them from ANS in writing at 6901 Preston Road, Plano, Texas 75024, or by phone at (972) 309-8000.



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