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C O R R E C T I O N -- Osteotech, Inc.
Date:7/29/2009

as it invests in launching products based upon its new proprietary technology platforms.

"The first half of 2009 has been a major tipping point in the Company's three year strategic plan to transform from a processor of allograft tissue to a technology driven organization focused on advanced biologics," continued Mr. Owusu-Akyaw. "The successful execution of our strategy has helped us self-fund this transformation even during the current economic crisis. Our investment has yielded exceptional new technologies and products that have put us on a dynamic growth path. For 2009, this means that we will launch or unveil four new products, a testament to the investment we have made in our proprietary technology platforms and our commitment to remaining on the cutting edge of biologics. To aggressively support our largest product launch, MagniFuse, we will be investing more aggressively than we originally anticipated in a team of field marketing specialists. These marketing specialists will be responsible for the focused execution of the educational programs at the surgeon level to teach implanting techniques and effectively differentiate MagniFuse as a procedure-specific biologic, initially focusing on the spine. We believe that this investment will allow us to capitalize on recent failings of similarly used products marketed by our competitors and quickly position MagniFuse as a market leader in the posterolateral spine and inter-vetebral surgery markets. We expect all of these efforts in 2009 to provide substantial returns in 2010 including at least $25 million in incremental revenue stemming from the new products introduced in 2009. We remain excited about our future and believe we are well positioned to achieve sustainable, profitable revenue growth over the long-term."

Guidance

Based upon the results achieved to date and the Company's strategy to build a team of field marketing specialists to support the Mag
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