The board of directors of Medtronic, Inc. (NYSE: MDT) approved a 50 percent increase in its cash dividend for fiscal year 2009, raising the quarterly amount to 18.75 cents per share of the Company’s common stock, for an annual amount of 75 cents per share.

Including the this increase, Medtronic’s dividend has tripled in just six years. This marks the twenty-second consecutive year of increasing the dividend payment to shareholders, and the thirty-second year of uninterrupted dividend payments.

“This increase in the dividend reflects both the board of directors’ and management’s confidence in the Company’s strong financial position and future growth prospects as well as our commitment to creating shareholder value,” said Bill Hawkins, president and chief executive officer of Medtronic. “Our strong operating cash flow allows us to invest for sustainable earnings growth of 11-14 percent while offering Medtronic investors enhanced returns through dividend increases and ongoing share repurchases.”

This increase brings Medtronic’s dividend payout ratio to 28 percent of prior year earnings and is consistent with the Company’s recently announced commitment to return a minimum of 40 to 50 percent of its free cash flow to shareholders each year in the form of dividends and share repurchases.

The dividend is payable on July 25, 2008, to shareholders of record at the close of business on July 3, 2008.

About Medtronic

Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, is the global leader in medical technology – alleviating pain, restoring health, and extending life for millions of people around the world.