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Osteotech Reports 2007 Full Year and Fourth Quarter Financial Results; Full Year Revenue of $104.3 Million Exceeds $100 Million Milestone; Diluted Earnings Per Share Was $.15 in 2007
Date:2/20/2008

g new and innovative technologies to further its growth in the emerging biologics and regenerative medicine industry."

Total revenue for the three months ended December 31, 2007 increased 6% to $26.9 million from $25.4 million for the fourth quarter of 2006. Core product revenue increased 17% to $17.7 million for the three months ended December 31, 2007 as compared to revenue of $15.1 million from core products in the fourth quarter of 2006. Gross margin improved to 53.5% in the fourth quarter of 2007 as compared to 47.6% in the fourth quarter of 2006.

Diluted earnings per share for the three months ended December 31, 2007 was $.04 on net income of $.8 million as compared to net income of $.1 million for the three months ended December 31, 2006.

Osteotech will host a conference call on Wednesday, February 20, 2008 at 9:00 a.m. Eastern Time during which management will discuss full year and fourth quarter financial results. You are invited to listen to the conference call by dialing 1-706-643-1624. The conference call will also be simultaneously webcast at http://www.osteotech.com. Automated playback will be available two hours after completion of the live call, through midnight, Wednesday, March 5, 2008, by dialing 1-706-645-9291 and indicating access code 34462919.

Osteotech, Inc., headquartered in Eatontown, New Jersey, is a global leader in providing OsteoBiologic solutions for regenerative medicine to support surgeons and their patients in the repair of the musculoskeletal system through the development of innovative therapy-driven products that alleviate pain, promote biologic healing and restore function. For further information regarding Osteotech, this press release or the conference call, please go to Osteotech's website at http://www.osteotech.com.

Certain statements made throughout this press release that are not his
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