<SEC-DOCUMENT>0000897101-01-500678.txt : 20011030
<SEC-HEADER>0000897101-01-500678.hdr.sgml : 20011030
ACCESSION NUMBER: 0000897101-01-500678
CONFORMED SUBMISSION TYPE: 10-K/A
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20010427
FILED AS OF DATE: 20011026
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MEDTRONIC INC
CENTRAL INDEX KEY: 0000064670
STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
IRS NUMBER: 410793183
STATE OF INCORPORATION: MN
FISCAL YEAR END: 0430
FILING VALUES:
FORM TYPE: 10-K/A
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-07707
FILM NUMBER: 1767021
BUSINESS ADDRESS:
STREET 1: 710 MEDTRONIC PKWY
STREET 2: MS LC300
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55432
BUSINESS PHONE: 7635144000
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K/A
<SEQUENCE>1
<FILENAME>medtronic014265_10ka.htm
<DESCRIPTION>MEDTRONIC, INC. FORM 10-K/A
<TEXT>
<HTML>
<HEAD>
<!-- Control Number: 014265 -->
<!-- Rev Number: 1.0 -->
<!-- Client Name: Medtronic, Inc. -->
<!-- Project Name: Form 10-K/A -->
<!-- Firm Name: Medtronic, Inc. -->
<TITLE>Medtronic, Inc. Form 10-K/A</TITLE>
</HEAD>
<BODY>
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<P ALIGN="CENTER"><B>FORM 10-K/A<BR>(AMENDMENT NO. 1) <BR>SECURITIES AND EXCHANGE COMMISSION
<BR>Washington, D.C. 20549</B></P>
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<HR SIZE=1 WIDTH=15% ALIGN=CENTER>
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<P><FONT SIZE=3>Amendment No. 1 to annual report pursuant to Section 13 or 15(d) of the<BR>
Securities Act of 1934 for the fiscal year ended April 27, 2001. </FONT></P>
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<P ALIGN="CENTER">Commission File No. 1-7707</P>
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<P ALIGN="CENTER"><B>MEDTRONIC, INC.</B></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" ALIGN="CENTER" WIDTH="600">
<TR VALIGN="BOTTOM">
<TD WIDTH="52%" ALIGN="CENTER">Minnesota</TD>
<TD WIDTH="48%" ALIGN="CENTER">41-0793183</TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER">(State of Incorporation)</TD>
<TD ALIGN="CENTER">(I.R.S. Employer Identification No.)</TD></TR>
</TABLE>
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<P ALIGN="CENTER">710 Medtronic Parkway <BR>Minneapolis, Minnesota 55432 <BR>(Address of
principal executive offices)
<BR>Telephone number: (763) 514-4000</P>
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<P><FONT SIZE=3>The undersigned registrant hereby amends Part IV, Item 14(a)3, entitled
“Exhibits”, of its Annual Report on Form 10-K for fiscal 2001 to add the
following exhibits: </FONT></P>
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<P><FONT SIZE="3"><U>Exhibit No.</U></FONT> </P>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT SIZE=3>99.1 </FONT></TD>
<TD WIDTH=90%><FONT SIZE=3>Form
11-K for the Medtronic, Inc. and Participating Employers Supplemental Retirement Plan for
the year ended April 30, 2001.</FONT></TD>
</TR>
</TABLE>
<BR>
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<P><FONT SIZE=3>Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its
behalf by the undersigned, thereunto duly authorized. </FONT></P>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="50%" ALIGN="LEFT"> </TD>
<TD WIDTH="50%" ALIGN="LEFT"><B>MEDTRONIC, INC.</B></TD></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="50%" ALIGN="LEFT"> </TD>
<TD WIDTH="50%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Dated: October 25, 2001<BR> <BR> </TD>
<TD ALIGN="LEFT">By: <U>/s/ Arthur D. Collins, Jr.</U><BR>Arthur D. Collins, Jr., President<BR>and Chief Executive Officer
</TD></TR>
</TABLE>
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<P ALIGN="CENTER"> </P>
<!-- *************************************************************************** -->
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<P ALIGN="CENTER"><B>INDEX OF EXHIBITS</B></P>
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<P><FONT SIZE="3"><U>EXHIBITS</U></FONT> </P>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT SIZE=3>99.1 </FONT></TD>
<TD WIDTH=90%><FONT SIZE=3>Form
11-K for the Medtronic, Inc. and Participating Employers Supplemental Retirement Plan for
the year ended April 30, 2001.</FONT></TD>
</TR>
</TABLE>
<BR>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>medtronic014265_ex99-1.htm
<DESCRIPTION>FORM 11-K FOR MEDTRONIC
<TEXT>
<HTML>
<HEAD>
<TITLE>Medtronic, Inc. Exhibit 99.1</TITLE>
</HEAD>
<BODY>
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<P ALIGN="CENTER"><B>EXHIBIT 99.1</B></P>
<BR><BR>
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<P ALIGN="CENTER"><B>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549</B></P>
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<P ALIGN="CENTER"><B>FORM 11-K</B></P>
<TABLE WIDTH=90% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN="TOP">
<TD WIDTH="100%" COLSPAN=2 ALIGN="LEFT">(mark one)</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT" WIDTH=5%>(X)</TD>
<TD ALIGN="LEFT" WIDTH=95%>ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE<BR> ACT OF 1934<BR>
For the fiscal year ended April 27, 2001</TD></TR>
<TR VALIGN="TOP">
<TD> </TD>
<TD ALIGN="CENTER"> <BR>Or<BR> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT">( )</TD>
<TD ALIGN="LEFT">TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934</TD></TR>
</TABLE>
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<P ALIGN="CENTER">Commission File Nos.: 33-37529 and 33-44230</P>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE=3>A. </FONT></TD>
<TD WIDTH=95%><FONT SIZE=3>Full
title of the plan and the address of the plan, if different from that of the issuer named
below:</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Center Bold" -->
<P ALIGN="CENTER"><B>MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS<BR> SUPPLEMENTAL RETIREMENT
PLAN</B></P>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE=3>B. </FONT></TD>
<TD WIDTH=95%><FONT SIZE=3>Name
of issuer of the securities held pursuant to the plan and the address of its principal
executive office:</FONT></TD>
</TR>
</TABLE>
<BR>
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<P ALIGN="CENTER">Medtronic, Inc.<BR>710 Medtronic Parkway<BR>Minneapolis, MN 55432</P>
<BR><BR><BR>
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<P ALIGN="CENTER"><B>SIGNATURES</B></P>
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<P><FONT SIZE=3><I>The Plan. </I>Pursuant to the requirements of the Securities
Exchange Act of 1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized. </FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="50%" ALIGN="LEFT"> </TD>
<TD WIDTH="50%" ALIGN="LEFT"><B>MEDTRONIC, INC. AND PARTICIPATING<BR>
EMPLOYERS SUPPLEMENTAL RETIREMENT<BR> PLAN</B><BR> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT">Dated: October 25, 2001</TD>
<TD>By: <U>/s/ Janet S. Fiola</U><BR>
<BLOCKQUOTE>Janet S. Fiola<BR>
Senior Vice President,<BR>
Human Resources</BLOCKQUOTE></TD></TR>
</TABLE>
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<P ALIGN="CENTER"> </P>
<PAGE>
<BR>
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<P><FONT SIZE="5"><B>Medtronic, Inc. and<BR>Participating Employers<BR>
Supplemental Retirement Plan</B></FONT> </P>
<!-- MARKER FORMAT-SHEET="Para Flush In 0" -->
<P><FONT SIZE="3"><B>Financial Statements and Supplemental Schedule<BR>
April 30, 2001 and 2000</B></FONT> </P>
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<P ALIGN="CENTER"> </P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>
Retirement Plan<BR>Index to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="TOP">
<TD WIDTH="90%" ALIGN="LEFT"> </TD>
<TD WIDTH="10%" ALIGN="RIGHT"><B>Page(s)</B></TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT">Report of Independent Accountants</TD>
<TD ALIGN="CENTER">1</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT">Financial Statements:</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> Statement of Net Assets Available for Benefits</TD>
<TD ALIGN="CENTER">2</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> Statement of Changes in Net Assets Available for Benefits</TD>
<TD ALIGN="CENTER">3</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> Notes to Financial Statements</TD>
<TD ALIGN="CENTER">4-10</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT">Supplemental Schedule:</TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="TOP">
<TD ALIGN="LEFT"> Schedule of Assets Held for Investment Purposes</TD>
<TD ALIGN="CENTER">12</TD></TR>
</TABLE>
<BR>
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<P ALIGN="CENTER"> </P>
<PAGE>
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<P ALIGN="CENTER"><B>Report of Independent Accountants</B></P>
<BR><BR>
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<P><FONT SIZE=3>To the Participants and Administrator of the<BR>
Medtronic, Inc. and Participating Employers<BR>
Supplemental Retirement Plan: </FONT></P>
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<P><FONT SIZE=3>In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits of the
Medtronic, Inc. and Participating Employers Supplemental Retirement Plan (the “Plan”)
at April 30, 2001 and 2000, and the changes in net assets available for benefits for the
years then ended in conformity with accounting principles generally accepted in the
United States of America. These financial statements are the responsibility of the Plan’s
management; our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion. </FONT></P>
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<P><FONT SIZE=3>Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedule of Assets Held For
Investment Purposes is presented for the purpose of additional analysis and is not a
required part of the basic financial statements but is supplementary information required
by the Department of Labor’s Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. This supplemental schedule is
the responsibility of the Plan’s management. The supplemental schedule has been
subjected to the auditing procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole. </FONT></P>
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<P><FONT SIZE=3>As discussed in Note 1, subsequent to April 30, 2001, the Plan was merged
into the Medtronic, Inc. Employee Stock Ownership and Supplemental Retirement Plan and all Plan
assets and related benefit obligations were transferred at that date. </FONT></P>
<BR><BR><BR>
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<P><FONT SIZE=3>Minneapolis, Minnesota<BR>
September 28, 2001 </FONT></P>
<BR><BR>
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<P ALIGN="CENTER">1</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Statement of Net Assets Available for Benefits<BR>
(in 000’s)</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="6"><FONT SIZE="-1">April 30,</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2001</FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2000</FONT></TH></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="64%" ALIGN="LEFT">Investments at fair value:</TD>
<TD WIDTH="1%" ALIGN="LEFT"> </TD>
<TD WIDTH="3%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT"> </TD><TD WIDTH="12%" ALIGN="RIGHT"></TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT"> </TD><TD WIDTH="12%" ALIGN="RIGHT"></TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Medtronic Common Stock Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 614,016</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 741,949</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard 500 Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">130,136</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">152,479</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard PRIMECAP Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">115,104</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">127,626</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard Wellington Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">97,555</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">88,723</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard Windsor II Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">53,331</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">43,901</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard Explorer Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">34,712</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">33,775</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard International Growth Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">28,652</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">31,680</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard U.S. Growth Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">23,401</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">27,047</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard Total Bond Market Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">17,325</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">9,117</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Vanguard Extended Market Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">9,861</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">10,053</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Participant loans</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">14,270</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">14,993</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,138,363</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,281,343</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Medtronic Interest Income Fund, at contract value</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">149,718</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">132,140</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Total investments</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,288,081</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,413,483</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Contributions receivable from employees</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">3,361</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">4,532</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Net assets available for benefits</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,291,442</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,418,015</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR><BR><BR><BR>
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<P ALIGN="CENTER">The accompanying notes are an integral part of these financial
statements.</P>
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<P ALIGN="CENTER">2</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Statement of Changes in Net Assets Available for Benefits<BR>
(in 000’s)</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0"WIDTH="600">
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="6"><FONT SIZE="-1">Year Ended April 30,</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2001</FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2000</FONT></TH></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="69%" ALIGN="LEFT">Contributions from employees</TD>
<TD WIDTH="1%" ALIGN="LEFT"> </TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="10%" ALIGN="RIGHT"> 77,975</TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="10%" ALIGN="RIGHT"> 68,354</TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Investment activity:</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Interest and dividend income</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">50,569</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">41,953</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Net (depreciation) appreciation in fair value of investments</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(169,109</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">257,736</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Total investment (loss) income</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(118,540</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">299,689</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Assets transferred from other plans (Note 9)</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">9,630</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">57,977</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Benefit payments</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(95,598</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(69,444</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Administrative fees</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(40</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(49</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">(Decrease) increase in net assets</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(126,573</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">356,527</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Net assets available for benefits:</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Beginning of year</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,418,015</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">1,061,488</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> End of year</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,291,442</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,418,015</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR><BR><BR><BR>
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<P ALIGN="CENTER">The accompanying notes are an integral part of these financial
statements.</P>
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<P ALIGN="CENTER">3</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>1.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Description
of the Plan</B></FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
following description of the Medtronic, Inc. and Participating Employers Supplemental
Retirement Plan (the “Plan”) provides only general information. Participants
should refer to the Plan document for a complete description of the Plan’s
provisions.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>General</B><BR>The
Plan is a defined contribution plan created by Medtronic, Inc. (the
“Company”). The Company established the Plan to help employees
increase retirement savings and provide financial security upon retirement. The
Plan is available to all eligible regular full-time and part-time employees
immediately upon hire. Employee contributions are subject to certain IRS limits
on allowable compensation and maximum contribution amounts. The Plan qualifies
under Section 401(a) of the Internal Revenue Code of 1986, as amended, and is
subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA), as amended.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
Board of Directors has approved the merger of the Plan into the Medtronic, Inc.
Employee Stock Ownership and Supplemental Retirement Plan. As of May 31, 2001,
all Plan assets and related benefit obligations had been transferred to the
Medtronic, Inc. Employee Stock Ownership and Supplemental Retirement Plan.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Administration</B><BR>The
Qualified Plan Committee of the Company oversees the administration of the Plan. The
committee appointed The Vanguard Fiduciary Trust Company as Trustee of the plan assets and
Recordkeeper of the Plan. The Vanguard Fiduciary Trust Company (hereinafter
referred to as the “Trustee”) has been appointed to provide
participant services, education and communication services. The Trustee
maintains a separate account in the name of each participant in the Plan to
record the assets allocated to the participant and the earnings, losses,
disbursement and expenses credited thereto.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Contributions</B><BR>Participating
employees may contribute to the Plan a minimum of 2% up to a maximum of 15%
(2000: maximum of 12%) of eligible earnings on a pre-tax basis. The Company
makes no matching contribution directly to the Plan, however the Company makes a
matching allocation of Medtronic common stock to the Employee Stock Ownership
Plan account. This matching allocation is at least 50%, up to a maximum of 150%
, of the employee contributions, limited to 6% of eligible compensation. The
Company match totaled approximately $33,063,000 and $32,046,000 for fiscal years
2001 and 2000, respectively.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Contributions
are made to the Plan by participants through payroll deductions. The
contributions are allocated to eleven investment choices based upon participant
investment decisions. The participants may change the investment decisions at
any time by contacting the Trustee. However, any funds exchanged out of the
Medtronic Interest Income Fund must remain invested in another investment
alternative for a period of at least three months before being moved to the
Vanguard Total Bond Market Index Fund.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Vesting</B><BR>Participants
are 100% vested in their contributions at all times. Participants are 20% vested
in the Company contributions upon completing one year of service. Vesting in the
Company contributions accrues at the rate of 20% per year thereafter;
participants are fully vested on all Company’s contributions after five
years. Participant forfeiture of nonvested amounts reduce the Company</FONT></TD>
</TR>
</TABLE>
<BR><BR>
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<P ALIGN="CENTER">4</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
contribution. During fiscal years 2001 and 2000, $867,000 and $529,000,
respectively, were forfeited by terminating employees before these amounts
became vested.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<B>Distributions</B><BR>An
active participant who has attained age 59 ½ may request a cash distribution for all or a
part of the value of the account.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Upon
termination of employment, the participant must take a complete distribution if
the value of the participant’s account is under $5,000. If the value of the
participant’s account is greater than $5,000, the participant may elect to
defer distribution until a later date, take a cash withdrawal or request a
direct rollover. Participant funds invested in Medtronic stock may be taken
in-kind or as cash. Upon retirement from the Company, the participants also have
the option to take monthly installments from the Plan.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Participants
may take hardship withdrawals from the Plan if they incur financial hardship.
The hardship withdrawal is only available to meet immediate and severe financial
needs that cannot be met through other available sources in the Plan including
the available loan provisions. The amount of the hardship withdrawal cannot
exceed the amount of the financial need and will be taxed upon distribution with
a 10% penalty tax imposed.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Upon
the death of a participant, the account becomes fully vested and will be paid to
the designated beneficiary, or if no beneficiary has been designated, the
balance will be paid according to the terms and conditions of the Plan. The
beneficiary has the option to take the Medtronic stock in-kind or as cash.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Participant Loans</B><BR>Participants
can have only one loan outstanding at a time and can borrow up to 50% of their
vested balance not to exceed the maximum loan amount of $50,000. The minimum
loan amount is $1,000. Loans are repaid through payroll deduction in equal
amounts over a 1 to 5 year period. The interest rate is calculated as one
percentage point over the prime rate in effect at US Bank, N.A., on the first
workday of the month in which the loan is made and remains fixed for the
duration for the loan.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Termination of the Plan</B><BR>Termination
or retirement benefits are paid by the Trustee in accordance with the provisions
of the Plan and the instructions of Medtronic, Inc., acting as plan
administrator. In the event the Plan were terminated, participants become fully
vested in the Company contributions and the Company would cause all amounts in the
hands of the Trustee to be allocated and distributed to the participants based
upon their investment balance.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Plan Amendments</B><BR>During
the current year, the Plan was amended to a) eliminate the one-year wait upon
reemployment for purposes of crediting vesting; b) include all prior years of
service in calculating the vested percentage of rehired employees and c) permit
Participants to elect a percentage of elective deferral contributions for
a plan year that is applied against their total credited compensation without
regard to the Internal Revenue Code limitations, provided such percentage does
not exceed 15% of the Participant’s covered compensation, as defined in the
Plan.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>2.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Summary
of Accounting Principles</B></FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE=3><B>Basis of Presentation</B><BR>The
accompanying financial statements are prepared on the accrual basis of accounting.</FONT></TD>
</TR>
</TABLE>
<BR>
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<P ALIGN="CENTER">5</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Valuation of Investments</B><BR>The
Plan’s investments are stated at fair value, except for its investment
contracts, which are valued at contract value. Shares of registered investment
companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. The Company stock fund is valued at its
year-end unit closing price (comprised of year-end market price plus uninvested
cash position.) Participant loans are valued at estimated fair value, consisting
of outstanding prinicipal and related unpaid interest.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Use of Estimates</B><BR>The
preparation of the financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Investment Transactions and Related Investment Income</B><BR>Purchases
and sales of investments are recorded on a trade-date basis. Realized gains and
losses on sales of investments are based on average cost at the time of the
sale. Interest income is accrued when earned. Dividend income is recorded on the
ex-dividend date. Capital gain distributions are included in dividend income.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Administrative Expenses</B><BR>Administrative
expenses are paid by the Plan for the administration of the Plan and maintenance
of the accounts. Such expenses consist of recordkeeping fees, trustee fees,
account maintenance fees, and annual loan fees. The Company pays for the fees
associated with transactions in the Medtronic Common Stock Fund.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Payment of Benefits</B><BR>Benefits
are recorded when paid.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>Risks and Uncertainties</B><BR>The
Plan provides for various participant investment options in funds, which can
invest in any combination of stocks, bonds, fixed income securities, mutual
fund, and other investment securities. Investment securities are exposed to
various risks, such as interest rate, market and credit. Due to the level of
risk associated with certain investment securities and the level of uncertainty
related to changes in the value of investment securities, it is at least
reasonably possible that changes in risks in the near term would materially
affect participants’ account balances and the amounts reported in the
Statements of Net Assets Available for Benefits and the Statements of Changes in
Net Assets Available for Benefits.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><B>New Accounting Standards</B><BR>In
June 1998, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging
Activities” (SFAS No. 133). SFAS No. 133 requires that an entity recognize all
derivatives and measure those instruments at fair value.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
SFAS
No. 133 is effective for fiscal years beginning after June 15, 2000. Pursuant to
Statement of Financial Accounting Standards No. 137, “Accounting for
Derivative Instruments and Hedging Activities-Deferral of the Effective Date of
FASB Statement No. 133- an Amendment of FASB Statement No. 133,” the Plan
is required to adopt SFAS No. 133 effective May 1, 2001. Management</FONT></TD>
</TR>
</TABLE>
<BR>
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<P ALIGN="CENTER">6</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
has not yet
been able to determine the impact of SFAS No. 133 on the Plan financial
statements as a result of the inconsistency in accounting literature between
SFAS No. 133, requiring derivatives to be measured at fair
value, and the AICPA Audit and Accounting Guide on “Audits of Employee
Benefit Plans” and Statement of Position 94-4, “Reporting of
Investment Contracts Held by Health and Welfare Benefit Plans and
Defined-Contribution Pension Plans”, requiring benefit responsive
investment contracts (including synthetic GICs) to be measured at contract
value. Until this discrepancy is resolved, management is unable to determine the
impact that SFAS 133 will have on the Plan financial statements. The carrying
value of those instruments is approximately $149,700,000 at April 30, 2001.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>3.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Description
of Investment Funds</B></FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
objectives of the eleven investment funds to which participants were able to
allocate their contributions during the plan years ended April 30, 2001 and 2000
are described as follows:</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><I>Medtronic
Common Stock Fund</I>: Invests in Medtronic, Inc. common stock to provide the possibility of
long-term growth through increases in the value of the stock and the reinvestment of its
dividends. Among the factors affecting the stock’s potential growth are the Company’s
ability to expand its commitment to new technology and products and to enter new markets.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
500 Index Fund</I>: Seeks to provide long-term growth of capital and income from
dividends by holding all of the 500 stocks that make up the unmanaged Standard
& Poor’s 500 Composite Stock Price Index, a widely recognized benchmark
of U.S. stock market performance.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><I>Vanguard
PRIMECAP Fund</I>: Seeks long-term growth of capital by investing in stocks of companies with
above-average prospects for continued earnings growth, strong industry positions, and
skilled management teams.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
Wellington Fund</I>: Seeks to provide income and long-term growth of capital
without undue risk to capital by investing about 65% of its assets in stocks and
the remaining 35% in bonds.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
Windsor II Fund</I>: Seeks to provide income and long-term growth of capital and
income from dividends by investing in a diversified group of out-of-favor stocks
of large-capitalization companies. The stocks generally sell at prices below the
overall market average compared to their dividend income and future return
potential.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><I>Vanguard
Explorer Fund</I>: Seeks to provide long-term growth of capital by investing in a diversified
group of small-company stocks with prospects for above-average growth.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
International Growth Fund</I>: Seeks to provide long-term growth of capital by
investing in stocks of high-quality, seasoned companies based outside the United
States of America. Stocks are selected from more than 15 countries.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%>
<FONT SIZE="3"><I>Vanguard
U.S. Growth Fund</I>: Seeks to provide long-term growth of capital by investing in large,
high-quality, seasoned U.S. companies with records of exceptional growth and
above-average prospects for future growth.</FONT></TD>
</TR>
</TABLE>
<BR><BR>
<!-- MARKER FORMAT-SHEET="Page Breaks" -->
<P ALIGN="CENTER">7</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
Total Bond Market Index Fund</I>: Seeks to provide a high level of interest
income by attempting to match the performance of the unmanaged Lehman Brothers
Aggregate Bond Index, which is a widely recognized measure of the entire taxable
U.S. bond market.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Vanguard
Extended Market Index Fund</I>: Seeks to provide long-term growth of capital by
attempting to match the performance of the Wilshire 4500 Equity Index, an
unmanaged index made up mostly of mid- and small- capitalization companies.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
<I>Medtronic
Interest Income Fund</I>: Seeks to preserve the value of capital and provide an
attractive level of interest by investing primarily in investment contracts
issued by insurance companies and banks. It is designed to maintain a constant
$1.00 share value.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>4.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Investments</B></FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
net (depreciation) appreciation in the fair value of investments during 2001 and
2000, including investments purchased and sold, as well as those held during the
year, was as follows (in 000’s):</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="6"><FONT SIZE="-1">April 30</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2001</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2000</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="60%" ALIGN="LEFT">Medtronic Common Stock Fund</TD>
<TD WIDTH="1%" ALIGN="LEFT"> </TD>
<TD WIDTH="3%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="10%" ALIGN="RIGHT"> (93,477</TD>
<TD WIDTH="4%" ALIGN="LEFT">)</TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="10%" ALIGN="RIGHT"> 233,265</TD>
<TD WIDTH="4%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard 500 Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(20,774</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">11,655</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard PRIMECAP Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(27,058</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">29,684</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard Wellington Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">4,472</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(12,344</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard Windsor II Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">4,898</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(14,584</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard Explorer Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(7,073</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">4,859</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard International Growth Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(7,543</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">3,390</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard U.S. Growth Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(19,317</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">2,456</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard Total Bond Market Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">557</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(425</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Vanguard Extended Market Index Fund</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(3,794</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(220</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> Net (depreciation) appreciation in</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> fair value of investments</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (169,109</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 257,736</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>5.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Medtronic
Interest Income Fund</B></FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
investments in the Medtronic Interest Income Fund consist of investment
contracts issued by financial institutions and of contracts backed by
investment-grade, fixed-income securities and bond mutual funds. These
investment contracts are valued at their contract values, which approximate fair
value because these investments have fully benefit-responsive features. There
are no reserves against contract values for credit risk of contract issuers or
otherwise.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
average yield of the Medtronic Interest Income Fund was 6.38% and 6.54% for 2001
and 2000, respectively. The crediting interest rate of the Medtronic Interest
Income Fund was 6.45% and 6.23% for 2001 and 2000, respectively. The crediting
interest rate is based on a formula agreed upon with the issuer, which cannot be
less than zero. Such interest rates are reviewed on a quarterly basis for
resetting.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Page Breaks" -->
<P ALIGN="CENTER">8</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>6.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Related
Party Transactions</B></FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
Plan invests in shares of mutual funds managed by an affiliate of Vanguard
Trust. Vanguard Trust acts as trustee for only those investments of the Plan.
Transactions in such investments qualify as party-in-interest transactions,
which are exempt from the prohibited transaction rules.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
At
April 30, 2001, the Plan held 13,767,179 shares of Medtronic, Inc. common stock
valued at approximately $614,016,000. At April 30, 2000 the Plan held 14,285,417
shares of Medtronic, Inc. common stock valued at approximately $741,949,000.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Total
purchases and sales, including purchases and sales of Medtronic stock, for the
years ended April 30, 2001 and April 30, 2000 were $531,526,000 and $485,121,000
and $507,369,000 and $404,879,000, respectively.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>7.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Reconciliation
of Financial Statements to Form 5500</B></FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
following is a reconciliation of net assets available for benefits per the financial
statements to Form 5500 (in 000’s):</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="6"><FONT SIZE="-1">April 30,</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2001</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
<TH COLSPAN="3"><FONT SIZE="-1">2000</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="67%" ALIGN="LEFT">Net assets available for benefits per financial statements</TD>
<TD WIDTH="1%" ALIGN="LEFT"> </TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="11%" ALIGN="RIGHT"> 1,291,442</TD>
<TD WIDTH="4%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="11%" ALIGN="RIGHT"> 1,418,015</TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Amounts allocated to withdrawing participants</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(4,945</TD>
<TD ALIGN="LEFT">)</TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(6,579</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Net assets available for benefits per Form 5500</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,286,497</TD>
<TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,411,436</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD>
<TD COLSPAN="3"><HR WIDTH=95% NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
following is a reconciliation of benefits paid to participants per the financial
statements to Form 5500 (in 000’s):</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
<TH COLSPAN="3"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="3"><FONT SIZE="-1">Year Ended<BR>April 30,<BR>2001</FONT><HR SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="80%" ALIGN="LEFT">Benefits paid to participants per financial statements</TD>
<TD WIDTH="1%" ALIGN="LEFT"> </TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD>
<TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="12%" ALIGN="RIGHT"> 95,598</TD>
<TD WIDTH="2%" ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Add: Amounts allocated to withdrawing participants at April 30, 2001</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">4,945</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Less: Amounts allocated to withdrawing participants at April 30, 2000</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT"> </TD><TD ALIGN="RIGHT">(6,579</TD>
<TD ALIGN="LEFT">)</TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="1"></FONT></TH>
<TD COLSPAN="3"><HR NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT">Benefits paid to participants per Form 5500</TD><TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT"> </TD>
<TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 93,964</TD>
<TD ALIGN="LEFT"> </TD></TR>
<TR>
<TH COLSPAN="3"><FONT SIZE="1"></FONT></TH>
<TD COLSPAN="3"><HR NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
Amounts
allocated to withdrawing participants are recorded on Form 5500 for benefit
claims that have been processed and approved for payment prior to April 30, but
have not yet been paid as of that date.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>8.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Tax
Status</B></FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
The
Plan received a favorable determination letter from the Internal Revenue Service
on March 28, 1996. Although the Plan has been amended since receiving the
determination letter, the Plan</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Page Breaks" -->
<P ALIGN="CENTER">9</P>
<PAGE>
<!-- MARKER FORMAT-SHEET="Para Flush In 0" -->
<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR>Retirement Plan<BR>
Notes to Financial Statements</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
administrator and the Plan’s tax counsel
continue to believe the Plan is designed and is being operated in compliance
with the applicable requirements of the Internal Revenue Code.</FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE="3"><B>9.</B></FONT> </TD>
<TD WIDTH=95%><FONT SIZE="3"><B>Net
Assets Transferred from Other Plans</B></FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
During fiscal years 2001, 2000 and 1999 the Company acquired or merged with
various companies, including Arterial Vascular Engineering, Inc., Sofamor Danek
Group, Inc., Xomed Surgical Products, Inc. and AVECOR Cardiovascular, Inc. In
connection with these mergers and acquisitions, $6.4 million and $52.1 million
of benefit plan assets were transferred into the Plan during fiscal years 2001
and 2000, respectively.</FONT></TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> </TD>
<TD WIDTH=95%><FONT SIZE=3>
During
fiscal years 2001 and 2000, participants transferred assets from the Medtronic,
Inc. Employees Stock Ownership Plan into the Plan of $3.2 million and $5.9 million,
respectively.</FONT></TD>
</TR>
</TABLE>
<BR><BR><BR><BR>
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<P ALIGN="CENTER">10</P>
<PAGE>
<BR><BR><BR><BR><BR>
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<P ALIGN="CENTER"><B>SUPPLEMENTAL SCHEDULE</B></P>
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<P ALIGN="CENTER">11</P>
<PAGE>
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<P><FONT SIZE="3"><B>Medtronic, Inc. and Participating Employers Supplemental<BR> Retirement Plan<BR>
Schedule of Assets Held for Investment Purposes<BR>
April 30, 2001<BR>
(in 000’s)</B></FONT> </P>
<HR SIZE=2 WIDTH=100%>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="700">
<TR VALIGN="BOTTOM">
<TH COLSPAN="2" ALIGN="LEFT"><FONT SIZE="-1">(a)<BR> </FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1">(b)<BR>Fund</FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1">(c)<BR>Investment Type</FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1">(d)<BR>Cost**</FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1">(e)<BR>Current Value</FONT></TH></TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="5%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="1%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="39%" ALIGN="LEFT"><FONT SIZE="-1">Medtronic Common Stock Fund</FONT></TD>
<TD WIDTH="1%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT SIZE="-1">Company Stock Fund</FONT></TD>
<TD WIDTH="2%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="8%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="1%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE="-1">$ 614,016</FONT></TD>
<TD WIDTH="1%" ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard 500 Index Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">130,136</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard PRIMECAP Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">115,104</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard Wellington Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">97,555</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard Windsor II Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">53,331</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard Explorer Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">34,712</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard International Growth Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">28,652</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard U.S. Growth Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">23,401</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard Total Bond Market Index Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">17,325</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Vanguard Extended Market Index Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Registered Investment Company</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">9,861</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Participant Loans</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Interest at 6.10% to 11% (Repayment</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">period is one to five years)</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,270</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1">*</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Medtronic Interest Income Fund</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Unallocated Insurance Contracts</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">149,718</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="2"><HR NOSHADE COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1">Totals</FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD><TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">$1,288,081</FONT></TD>
<TD ALIGN="LEFT"><FONT SIZE="-1"> </FONT></TD></TR>
<TR>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TH COLSPAN="2"><FONT SIZE="-1"></FONT></TH>
<TD COLSPAN="2"><HR NOSHADE COLOR="Black" SIZE="2"></TD></TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE=3> </FONT></TD>
<TD WIDTH=95%><FONT SIZE=3>The above
data was prepared from information certified as complete and accurate by The Vanguard
Fiduciary Trust Company, the Plan’s Trustee.</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE=3>* </FONT></TD>
<TD WIDTH=95%><FONT SIZE=3>Denotes
party-in-interest.</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT SIZE=3>** </FONT></TD>
<TD WIDTH=95%><FONT SIZE=3>Cost information
is excluded as it is no longer required for participant-directed investments. </FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER">12</P>
<PAGE>
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<P ALIGN="CENTER"><B>Consent of Independent Accountants</B></P>
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<P><FONT SIZE=3>We hereby consent to the incorporation by reference in the
Registration Statements on Form S-8 (Nos. 33-37529 and 33-44230) of
Medtronic, Inc. of our report dated September 28, 2001 relating to the financial
statements of the Medtronic, Inc. and Participating Employers Supplemental
Retirement Plan which appears on this Form 11-K. </FONT></P>
<BR><BR><BR><BR>
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<P><FONT SIZE=3>/s/ PricewaterhouseCoopers LLP<BR>
PricewaterhouseCoopers LLP<BR>
Minneapolis, Minnesota<BR>
October 24, 2001 </FONT></P>
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</DOCUMENT>
</SEC-DOCUMENT>
