Annual Financial Highlights

RTI Biologics, Inc. Reported Revenue

	Year Ended Dec. 31, 2006	Year Ended Dec. 31, 2007	Year Ended Dec. 31, 2008	Year Ended Dec. 31, 2009	Year Ended Dec. 31, 2010	Year Ended Dec. 31, 2011
Revenues (000)	$73,970	$94,207	$146,635	$164,527	$166,171	$162,855
Gross Profit (000)	19,323	37,650	68,814	77,493	76,003	77,214
Operating (Loss) Income (000)	(17,534)	(2,568)	(98,357)	9,019	(127,375)	11,771
Basic Net (Loss) Income Per Share	(0.37)	(0.07)	(2.00)	0.11	(2.36)	0.15
Diluted Net (Loss) Income Per Share	(0.37)	(0.07)	(2.00)	0.11	(2.36)	0.15
Current Assets (000)	73,301	88,442	131,710	152,942	159,072	157,887
Total Assets (000)	129,808	135,966	334,080	354,507	225,758	230,027
Total Stockholders’ Equity (000)	$109,890	$111,643	$281,050	$289,889	$161,936	$230,027

Results by Revenue Category

RTI Biologics, Inc. Reported Revenue

	Year Ended Dec. 31, 2006	Year Ended Dec. 31, 2007	Year Ended Dec. 31, 2008	Year Ended Dec. 31, 2009	Year Ended Dec. 31, 2010	Year Ended Dec. 31, 2011
Sports Medicine (000)	$14,959	$27,685	$36,330	$39,533	$45,065	$48,122
Spinal Constructs (000)	35,085	41,067	41,817	41,087	33,906	39,722
Dental (000)	---	---	27,365	29,985	29,746	18,392
Surgical Specialties (000)	---	---	15,350	26,278	26,871	30,328
Bone Graft Substitutes & General Orthopedic (000)	14,475	18,004	20,024	23,161	25,413	26,291
Cardiovascular (000)	5,639	1,952	---	---	---	---
Other (000)	3,812	5,499	5,749	4,483	5,170	6,461
Total (000)	$73,970	$94,207	$146,635	$164,527	$166,171	$169,316

Supplemental Information to the Company’s press release dated Feb. 3, 2011

The following table represents a theoretical model of how our exclusive distribution agreement with Zimmer Dental Inc., dated as of Sept. 3, 2010 and effective as of Sept. 30, 2010, is structured based on an end user price of $100. It does not represent any past results nor constitute a forecast of future results under the new exclusive distribution agreement or the prior marketing, distribution and licensing agreements among the parties and their respective affiliated entities, which were superseded and replaced by the new exclusive distribution agreement as of the effective date. Any actual results may differ substantially from the model presented here.

	Old Agreement		New Agreement*
	$	% Revenue	$	% Revenue
Revenue:
Product	$100	100%	$51	87% (1)
Deferral Recognition	—	0%	8	13% (2)
Total Revenue	100	100%	58	100%
Cost of Sales	44	44%	44	75%
Gross Margin	56	56%	14	25%
Operating Expense:
Commissions	42	42%	—	0% (3)
Other Support Costs	5	5%	1	2% (4)
Total Operating Expense	47	47%	1	2%
Operating Income	$10	10%	$13	23%