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Osteotech Announces the Unexpected Passing of Audit Committee Member Leads to Receipt of Nasdaq Deficiency Letter
Date:5/2/2008

EATONTOWN, N.J., May 2 /PRNewswire-FirstCall/ -- Osteotech, Inc. (Nasdaq: OSTE) announces today that on April 28, 2008, it received a Nasdaq Staff Deficiency Letter in response to its notification to Nasdaq that Robert W. Gunn, an independent director and a member of the Board of Directors' Audit and Compensation Committees, passed away unexpectedly on April 22, 2008. As a result, Osteotech has only two independent directors serving on its Audit Committee and is not in compliance with the Audit Committee composition requirements for continued listing set forth in Nasdaq Marketplace Rule 4350(d)(2)(A). Pursuant to Nasdaq's letter, Osteotech has until October 20, 2008 to regain compliance with the Audit Committee composition requirements or it will be subject to delisting from the Nasdaq Stock Market. Osteotech was expecting the letter it received from Nasdaq and the Nominating and Corporate Governance Committee of the Board of Directors is currently seeking to identify a suitable candidate for appointment to the Board of Directors who will satisfy the Nasdaq Marketplace requirements for serving on the Audit Committee. Osteotech anticipates that it will be able to identify and appoint a suitable candidate prior to October 20, 2008.

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 http://
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SOURCE Osteotech, Inc.
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