Good day, ladies and gentlemen, and welcome to the fourth quarter 2007 CONMED earnings conference call. (Operator Instructions) I would now like to turn the call over to Mr. Joseph Corasanti, President and CEO. Please proceed, sir.

Thank you very much. Good morning, everyone. Welcome to CONMED Corporation's fourth quarter 2007 earnings conference call. With me today is Rob Shallish, our Chief Financial Officer. After formal remarks, the call will be opened for questions. Before we begin, let me remind you that during this call, we will be making comments and statements regarding our financial outlook, which represent forward-looking statements that involve risks and uncertainties as those terms are defined under federal security laws. Our actual results could differ materially from our current expectations. Please refer to the risk factors and other cautionary factors in today's press release as well as our SEC filings for more details on factors that could cause actual results to differ materially. CONMED had a very strong quarterly performance. We exceeded our previously disclosed financial performance metrics that we had set for the company at the beginning of the year and again at the end of Q3. Here are the highlights. Sales increased 11.6% over the 2006 fourth quarter. The non-GAAP operating margin percentage grew 270 basis points to 12.3% in the fourth quarter of 2007 compared to the non-GAAP operating margin of 9.6% in the fourth quarter last year. Non-GAAP diluted earnings per share grew 33% to $0.44 per share from $0.33 per share non-GAAP comparative figure in the 2006 fourth quarter. After-tax income increased 36% when comparing this year's fourth quarter non-GAAP income to last year's fourth quarter non-GAAP amount. Cash from operations for the quarter was equal to $31.8 million or $1.09 per share. For the full year, cash from operations was $67.2 million or $2.32 per share. We've previously stated our expectation for the foreseeable future that company's revenue growth should outpace operating expense growth, thus creating margin and bottomline expansion in excess of topline growth. In our…

Thanks very much, Joe, and good morning, everyone. As Joe mentioned, the company finished off 2007 with a great fourth quarter. Sales for the quarter were $189.6 million, an increase of 11.6% over the fourth quarter of 2006. In constant currency, the rate of growth was 8%. For the full year of 2007, our revenues of $694.3 million represented an increase of 7.3% over 2006. All year along, we experienced the benefits of the favorable foreign currency rates. In constant currency, this year's growth was 5%, achieving the goal we set for the company at the beginning of the 2007. This constant currency internal growth of 5% compares to 4% in 2006 and 2.2% in 2005. So, we have continued to make progress at the topline by having the right products and the appropriate sales and marketing groups to sell them. By geography, sales outside the United States outpaced domestic revenue growth by increasing 24% in the fourth quarter and 16% for the full year. For the fourth quarter, international sales amounted to 43.5% of the total, an increase from the 39.2% of sales in the fourth quarter of 2006. On a constant currency basis, the weakening of the US dollar relative to a year ago produced a fourth quarter sales number $6.1 million higher than if foreign currency exchange rates had remained consistent with the fourth quarter of 2006. For the full year, the benefit to sales from FX amounted to $15.2 million compared to 2006 exchange rates. I'd add that our international organization consist of direct selling through our own local employees in eleven countries with distributors representing our products in most other countries of the world. Before turning to a discussion of profits and margins, I'd like to discuss comparisons to GAAP and non-GAAP financial amounts. Over…

(Operator instructions) First question comes from the line of Mark Mullikin from Piper Jaffray. Please proceed.

Good morning. Rob, can you just remind us how the foreign exchange impact plays out on the bottom line in '08 and what you're factoring into the top line for foreign exchange?

Well, for 2008 our assumptions in all of the numbers that we've given would be that the currency rates would approximate the average rates for 2007. So, basically we don't have any currency in the numbers that we've given for guidance in 2008.

And, so there is no FX contribution to your thinking on '08 guidance at all?

That’s correct. Our belief is that, at least in the guidance that the foreign currency rates would approximate the rates that we've seen in the -- on average in 2007.

Okay. And is there anything specifically driving the core Arthroscopy growth, I think you said that was 9%. That's a pretty noticeable acceleration for CONMED. Are there any particular products driving that?

We'll, we've seen very good growth internationally all year long and so that's been very helpful. Our Procedure Specific Products, I think continue to do well. We've seen good growth in our so called shaver blade business, the powered instrument portion of Arthroscopy. So, all of these products are, I mean, we've new products that we introduce every year in this line. But I'd say that none of them have been of a blockbuster nature such as the HD Video Systems have been. So, it's just more meeting the customer requirements, servicing our customers and providing them with the best products that we have available.

Yeah I'd like to add that I think we've greater focus on our domestic selling as well for the core products. And I think we've seen some pull through as we've gained penetration with video, with our HD Camera System. We are getting in front of more surgeons even some surgeons we are building new relationships with some surgeons and then having pull through business and selling deeper into our bag on the arthroscopy side of the business.

Okay. So, in '08 do you expect the domestic growth rates to improve, it looks like you get 3.7% domestically in the fourth quarter 1.8% for the year. Do you expect that growth rates to accelerate domestically above and beyond that 4% level?

Well, our goal is to certainly improve on the -- the annual growth number of around 2%. We expect improvement there and are working towards that. And again it will come from greater focus on US sales and as well as getting better pull through with the video that's already been sold into the market and then continuing into '08 with video.

Okay. And just my final question what is your expectation for CapEx in '08?

'08 CapEx will be similar to this past years CapEx, so in a $20 million to $22 million.

Very good. Thank you.

Your next question comes from the line of James Sidoti with Sidoti & Company. Please proceed. James Sidoti - Sidoti & Company: Good morning. Can you hear me?

Yes, Jim. James Sidoti - Sidoti & Company: Okay. I've two questions. First can you give us an update on ECOM and when you think that will be ready and what do you think the R&D will look like as a result of that this year?

ECOM is performing very well. We are continuing to use it in clinical settings with patient setting. We are still at the VA in San Francisco on UCLA. We are completing the IRB application process within a week or two at three other sites, so start using the product on patients at three other sites and it looks like we will probably have a limited market release actual sales of the disposable tubing portion of the system beginning in April. We were hoping for a March launch I guess of a limited market launch then it's now going to be April. The system is performing very well. We're getting correlation results with correlating our product with pulmonary artery catheters, Swan-Ganz catheters and expect a full launch in the July, August timeframe. James Sidoti - Sidoti & Company: Okay. And how does that affects R&D between now and then, do you see a tick up, does it actually start to step down in 2008?

R&D is we believe will be constant or consistent certainly with what we spent in the past, it about the 4.5% of sales level. James Sidoti - Sidoti & Company: Okay. And then a question for Rob, you talked about the taxes a little bit. But can you tell us what you actually hear actual cash tax rate would be in 2008?

Yeah, Jim, I think it's going to be under 10% and most of that would be foreign taxes, some state taxes, very little federal tax. James Sidoti - Sidoti & Company: Okay, thank you.

(Operator Instruction) The next question comes from the line of [Bill Happy with Investment Counselors]. Please proceed.

Thanks. You said that GAAP ratio is getting down kind of near the bottle if I think what your range is targeted just wondering what a prioritizing uses of cash going forward and maybe if acquisitions are part of that, what the environment looks like? Thanks.

Sure. Bill, our strategy really hasn't changed. We have several uses for cash, debt payment, acquisition and in the past we've had stock buybacks. We continue to look for acquisitions. We haven't made any acquisitions of any significant in the last three years. So, absent opportunities, then we'd be thinking about debt payment. (inaudible) to add Joe.

Well, in fact, we are already below our range of debt to total cap that was 35% to 45%, we are below that already. But without any other uses of cash, cash requirements we'd be paying down debt.

Okay. Can I do a follow-up question?

Of course.

Maybe update on leadership at Linvatec and I don't know if you're doing a search or just?

Yeah the search for a new president at the CONMED Linvatec division is underway and we expect that to continue for the next couple of months. The team here is a solid team. The business is running smoothly and as we'd expect its business as usual and this division is performing very well as you can see from the results of 2007.

Okay, thank you.

Sure.

At this time, there are no further questions. I'd like to turn the call over to Joseph Corasanti for closing remarks.

Thank you very much. Thanks everyone for joining us today. We continue to work hard at improving the companies operations. I look forward to discussing our further progress with you at our next conference call again thanks for joining us today. We look forward to talking to you on our next call. Thank you, bye.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.