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IsoTis - Integra Merger
Date:9/19/2007

of remaining independent, including management's assessment that if the company remains independent, it likely will not be able to obtain financing and will run out of cash to continue operations after October 2007, requiring the company to consider seeking bankruptcy protection.

The company has been operating on a net income and cash flow deficit and expects this to continue for the foreseeable future. Despite its efforts, the company has been unable to obtain a viable financing alternative and believes it will run out of cash to operate the business in October 2007. The company believes that if the merger is not consummated, the company may be forced to declare bankruptcy that will result in a decrease in the value of its common stock."

The ISS report concludes, stating, "Based on our review of the terms of the transaction and the factors described above, specifically the one-day market premium and the company's financial condition, we believe that the merger agreement warrants shareholder support."

In advance of the October 11, 2007 stockholder meeting, IsoTis intends to hold information meetings for its European stockholders on the following dates:

- September 25, 2007, 6 p.m., local time, at Hotel Alpha-Palmiers, located in Lausanne, Switzerland

- September 26, 2007, 6 p.m., local time, at Hotel Baur au Lac, located in Zurich, Switzerland

- September 27, 2007, 6 p.m., local time, at World Trade Center Schiphol Airport, located in Amsterdam, The Netherlands

The purpose of these meetings is to provide stockholders with an opportunity to ask questions regarding the acquisition of IsoTis by Integra. Stockholders will not be asked to vote on the transaction during these information meetings. IsoTis stockholders will vote on the transaction at the October 11, 2007 special meeting of stockholders to be held in Irvine, California. Stockholders are reminded that not voting on the transaction effectively constitutes a vote agains
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SOURCE IsoTis Inc
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