We studied the influence of soft-tissue releases and soft-tissue balance on the outcome of 526 total knee replacements one year after operation. The surgery had been performed by seven surgeons in five centres in the United Kingdom between October 1999 and December 2002. Balancing was carried out by five surgeons using spacers and trials and by two surgeons using a ‘balancer’ instrument. All the surgeons assessed the adequacy of their releases by taking measurements with the balancer after soft-tissue release before implanting the components. Independent observers collected the Oxford knee scores and applied the American Knee Society functional and knee scores as well as recording the range of movement of the replaced knee. These were compared with the pre-operative scores and the extent of the releases. We found differences in outcomes between minimal and extensive releases and between balanced and imbalanced knees. Knees requiring extensive soft-tissue releases showed greater change in the short-term clinical outcome without increased complications and achieved similar results at one year compared with those with less deformity pre-operatively which had required less soft-tissue release. Balancing an imbalanced knee improved the short-term knee outcome.