ArthroCare Corp. (ArthroCare) has received a delisting notice from the Nasdaq Listing Qualifications Panel (Nasdaq Panel) on January 14, 2009. Notice indicates that the Nasdaq Panel has determined to suspend and delist ArthroCare common stock on The Nasdaq Stock Market, effective at the open of trading on Friday, January 16, 2009.

ArthroCare has demanded a review from the Nasdaq Listing and Hearing Review Council, which could result in staying the Panel’s decision to delist the company’s common stock from Nasdaq. However, there can be no assurance that the request will be granted.

Following the suspension of the Company’s stock from Nasdaq, the Company expects its common stock to be quoted on the “Pink Sheets,” an electronic quotation service maintained by Pink OTC Markets, Inc., under the trading symbol “ARTC.PK”.

The Panel’s delisting notice features an event of default under the company’s credit agreement with a group of banks. ArthroCare is seeking a waiver of the default from the banks.