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NuVasive Completes Acquisition of Osteocel Biologics Business
Date:7/24/2008

SAN DIEGO, July 24, 2008 /PRNewswire-FirstCall/ -- NuVasive, Inc. (Nasdaq: NUVA), a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, announced today that it has completed the previously announced acquisition of the Osteocel biologics business from Osiris Therapeutics, Inc. (Nasdaq: OSIR) for $35 million in cash, plus additional milestone-based contingent payments not to exceed $50 million in either cash or stock, at NuVasive's election. The core of the Osteocel business is a proprietary adult stem cell bone graft product.

Osteocel is the only viable bone matrix product on the market that provides the three beneficial properties similar to autograft: osteoconduction (provides a scaffold for bone growth), osteoinduction (bone formation stimulation) and osteogenesis (bone production). Osteocel allows surgeons to offer the benefits of these properties to patients without the discomfort and potential complications of autograft harvesting, in addition to eliminating the time spent on a secondary surgical procedure. Osteocel is produced for use in spine applications through a proprietary processing method that preserves the native stem cell population that resides in marrow rich bone.

Strategic benefits of the transaction to NuVasive:

-- Provides comprehensive stem cell biologic platform with benefits similar to autograft;

-- Proprietary production process with significant supply capacity;

-- Strengthens biologics platform for
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SOURCE NuVasive, Inc.
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