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Osteotech's Plexur(R) Technology to Be Used in Craniofacial Reconstruction Program Funded by the Armed Forces Institute of Regenerative Medicine

EATONTOWN, N.J., May 2 /PRNewswire-FirstCall/ -- Osteotech, Inc. (Nasdaq: OSTE), a leader in the emerging field of biologic solutions for regenerative healing, announced today that its Plexur(R) Technology will be used in a Craniofacial Reconstruction Program led by Dr. Jeffrey Hollinger of Carnegie Mellon University. This program, which was prepared under the auspices of the New Jersey Center for Biomaterials and Dr. Joachim Kohn of Rutgers University, is part of a multi-institutional effort funded by a $42.5 million grant from the Armed Forces Institute of Regenerative Medicine (AFIRM). AFIRM was recently created by the United States Department of Defense to provide funding for the development of regenerative technologies that can be used to treat the most critically injured service members, as well as civilian patients.

The reconstruction program looks to create a new Plexur(R) Biocomposite made of allograft bone fibers or particles and utilizes a novel biodegradable polyurethane to facilitate healing and improve outcomes. This new Plexur(R) Biocomposite will be developed through the collaborative efforts of Dr. Hollinger, Dr. Scott Guelcher at Vanderbilt University, and Osteotech's scientific team. Osteotech has had a long-standing working relationship with Dr. Hollinger and Dr. Guelcher.

Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer, stated, "We are very pleased and proud that our Plexur(R) Technology will be used in this research effort at Vanderbilt University and Carnegie Mellon University. The need is great for regenerative solutions to treat serious traumatic injuries to the skull due to wartime injuries. Our Plexur(R) Technology has the potential to offer new solutions in reconstruction of the craniofacial region and elsewhere in the body to treat damage from these very difficult injuries."

Osteotech previously obtained a license from Carnegie Mellon University for the biodegradable polyurethane that is to be used in this program. This biodegradable polyurethane, in combination with Osteotech's Plexur(R) Technology, has been licensed to Vanderbilt University for research purposes. The collaborative research efforts are directed in part, towards developing a biocomposite that has unique characteristics, including high compressive, torsional or bending strength. Osteotech has the rights to any product developed within its current Plexur(R) intellectual property estate and a non-exclusive right to any technology improvements.

The Plexur(R) Technology uses bone tissue for procedure-specific surgical applications in combination with a wide variety of polymers. On a world-wide basis, Osteotech controls over 33 patents and over 65 pending patent applications covering this technology for human and xenograft bone tissue. For more information about the Plexur(R) Technology or Osteotech's Plexur P(TM) or Plexur M(TM) Biocomposites, please go to the Osteotech website at

The New Jersey Center for Biomaterials is an academic research center at Rutgers, The State University of New Jersey. The center links research universities nationwide with industry and government to develop advanced materials for tissue repair and replacement, and drug delivery systems. Technology invented at the center is currently being licensed by three companies for the development of cardiovascular, ophthalmic and surgical implants. For further information regarding the New Jersey Center for Biomaterials, please visit

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 or this press release, please go to Osteotech's website at

Certain statements made throughout this press release that are not historical facts contain forward-looking statements (as such are defined in the Private Securities Litigation Reform Act of 1995) regarding the Company's future plans, objectives and expected performance. Any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks and uncertainties and, therefore, there can be no assurance that actual results may not differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company's ability to develop and introduce new products, differences in anticipated and actual product and service introduction dates, the ultimate success of those products in the marketplace, the continued acceptance and growth of current products and services, the impact of competitive products and services, the availability of sufficient quantities of suitable donated tissue and the success of cost control and margin improvement efforts. Certain of these factors are detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. All information in this press release is as of May 2, 2008 and the Company does not intend to update this information.

SOURCE Osteotech, Inc.
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