ALACHUA, Fla. (April 25, 2013) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the first quarter of 2013 as follows:

Quarterly Highlights:
•Achieved quarterly revenues of $40.4 million.
•Achieved net income of $1.5 million, or $0.03 per fully diluted share.
•Launched direct surgical specialties business with new line of biologic implants for hernia repair.
•Received 510(k) clearance for porcine dermis implant.
•Announced positive clinical results for BioCleanse®-processed BTB allografts.

Worldwide revenues of $40.4 million for the first quarter of 2013 decreased 8 percent compared to the first quarter of 2012. Domestic revenues of $36.1 million for the first quarter of 2013 decreased by 5 percent compared to the first quarter of 2012, primarily due to weakness of the sports medicine, bone graft substitutes and general orthopedic, and dental businesses and offset by strength in the spine business. In addition, domestic other revenue was positively impacted by the acceleration of deferred revenues resulting from our hernia distributor relinquishing exclusive distribution rights in the hernia market. International revenues of $4.3 million for the first quarter of 2013 decreased 27 percent as compared to the first quarter of 2012. On a constant currency basis, international revenues for the first quarter of 2013 also decreased 27 percent as compared to the first quarter of 2012.

For the first quarter of 2013, the company reported net income of $1.5 million and net income per fully diluted share of $0.03, based on 56.3 million fully diluted shares outstanding, compared to net income of $2.0 million or $0.04 per fully diluted share for the first quarter of 2012, based on 55.9 million fully diluted shares outstanding. First quarter 2013 net income per fully diluted share was favorably impacted by approximately $0.01 due to recognition of the full 2012 research and experimentation tax credit in the quarter.

“Our first quarter results were in line with our expectations,” said Brian K. Hutchison, president and chief executive officer of RTI. “In a very challenging environment, our distribution team has worked hard to respond to customer reaction to the FDA warning letter that was received in October 2012. International revenues continued to be negatively impacted by inaccuracies in European media coverage about the company and the tissue industry. We will continue to diligently work through these issues until we bring them to resolution.”

Fiscal 2013 and Second Quarter Outlook

Based on results from the first quarter, the company is raising the low end of its full year revenue guidance for 2013 from $178 million to $179 million. The company now expects full year revenues for 2013 to be between $179 million and $182 million. Full year net income per fully diluted share is expected to be in the range of $0.17 to $0.19, based on 56.7 million fully diluted shares outstanding. In 2013, the company will continue to make investments in distribution, marketing and development activities to support the launch of its direct surgical specialties business and expand its presence in general orthopedics.

For the second quarter of 2013, the company expects revenues to be between $42 million and $43 million, and net income per fully diluted share to be approximately $0.03.

“As mentioned in our 2012 fourth quarter and year-end earnings release, we expect weakness in the first half of the year due to customer reaction to the FDA warning letter and inaccuracies in media coverage,” said Hutchison. “However, we anticipate that following closure of the warning letter and the introduction of new implants, the second half of the year will be strong.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the first quarter results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The BioCleanse® Tissue Sterilization Process, the Tutoplast® Tissue Sterilization Process and the Cancelle™ SP Demineralization Process have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory actions or approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

RTI will host a conference call and simultaneous audio webcast to discuss first quarter 2013 results at 8:30 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419 (U.S.) or (760) 666-3754 (International). The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on RTI’s website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes – BioCleanse®, Tutoplast® and Cancelle® SP DBM – have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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ALACHUA, Fla. (March 20, 2013) — RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, is pleased to announce the results of a recent randomized prospective clinical study of BioCleanse®-processed bone-patellar tendon-bone (BTB) allografts used in anterior cruciate ligament (ACL) reconstruction surgery. The study was published in the peer reviewed journal, Knee Surgery, Sports Traumatology, Arthroscopy, in December 2012.

The article compares the clinical outcomes of BTB allografts processed using RTI’s patented BioCleanse Tissue Sterilization Process with a control group consisting of aseptically-processed allografts from the three U.S. tissue banks that provide this type of allograft. According to the American Association of Tissue Banks’ 13th edition of Standards for Tissue Banking, aseptic processing refers to the processing of tissue using methods to prevent, restrict or minimize contamination with microorganisms from the environment, processing personnel, and/or equipment. A total of 67 patients undergoing ACL reconstruction at six independent investigation sites were evaluated at six, 12 and 24 months. After randomization, 24 patients received aseptic BTB allografts and 43 patients received BioCleanse-sterilized allografts.

“These results indicate that the sterilization process, BioCleanse, did not demonstrate a statistical difference in clinical outcomes for the BTB allograft at two years,” authors find. “The BioCleanse process may provide surgeons with allografts clinically similar to aseptically-processed allograft tissue with the benefit of addressing donor-to-recipient disease.”

According to Millennium Research Group’s “U.S. Markets for Orthopedic Soft Tissue Solutions 2011” report, more than 457,400 ACL reconstructions are performed annually in the U.S., with 21 percent of those using allograft implants. According to the authors, the use of allograft tissue in ACL reconstruction has been noted to decrease operating time, eliminate donor site morbidity and increase the tissue available for multi-ligament cases. The one disadvantage compared with autografts (the use of one’s own tissue) or metal and synthetic implants, is that disease can be transmitted as a result of an aseptically-processed allograft.

However, RTI’s BioCleanse Tissue Sterilization Process, a patented, validated, automated process provides surgeons with a safe option for allografts. The system sterilizes tissue to SAL 10-6 using a complex, proprietary combination of mechanical and chemical processes, working in conjunction with each other. The mechanical component applies oscillating positive and negative pressure in the presence of the chemical agents (including detergents and sterilants), which gently perfuse the tissue. This combination removes blood and lipids, and inactivates or removes pathogenic microorganisms. Repeated water rinses throughout the process remove debris, and final water rinses remove residual chemicals, leaving the tissue biocompatible. The BioCleanse process does not use excessive heat or irradiation to sterilize tissue.

“This study provides further evidence that BioCleanse-processed implants are a safe alternative to autografts,” said Roger Rose, RTI’s executive vice president and chief commercial officer. “BioCleanse sterilizes tissue without the potentially harmful side effects of other methods.”

The safety of allograft tissue is contingent on three stages: donor screening, laboratory testing and tissue preparation validated to address potential disease transmission. Some companies rely only on donor screening, laboratory testing and aseptic processing for the safety of their implants.

“When we launched BioCleanse in March 2000 it was the first of its kind in terms of allograft tissue sterilization for our industry,” said Brian K. Hutchison, president and CEO. “The low-temperature chemical sterilization process inactivates or removes bacteria, fungi, spores and viruses from tissue without compromising the biocompatibility or structural integrity of the tissue. The positive results of this clinical study prove just that. Surgeons and patients can rest assured knowing that RTI provides allografts that will maintain their biomechanical integrity the same as aseptically-processed implants, while addressing the risk of donor-to-recipient infection.”

Where possible, RTI has advanced beyond the use of aseptic processing, which does not ensure the removal or inactivation of microorganisms inherent to the donor or tissue, to better protect recipients from the risk of donor-to-recipient disease transmission. RTI’s proprietary, validated sterilization processes have a proven track record of more than four million implants distributed with zero incidence of implant-associated infection. To learn more, visit www.rtibiologics.com/safety/sterilization-processes.

The article entitled, “Aseptically processed and chemically sterilized BTB allografts for anterior cruciate ligament reconstruction: a prospective randomized study,” can be downloaded for free at http://link.springer.com/article/10.1007%2Fs00167-012-2309-7. Authors are: Peter A. Indelicato, University of Florida, Gainesville, Fla.; Michael G. Ciccotti, Thomas Jefferson University, Philadelphia, Pa.; Joel Boyd, TRIA Orthopaedic Center, Minneapolis, Minn.; Laurence D. Higgins, Brigham and Women’s Hospital-Ortho, Boston, Mass.; Benjamin S. Shaffer, George Washington University, Washington, D.C.; and C. Thomas Vangsness Jr., University of Southern California, Los Angeles.

To learn more about RTI’s BioCleanse-processed BTB allografts, as well as the company’s full biologic portfolio, visit the RTI Biologics booth, #3823, at the American Academy of Orthopaedic Surgeons’ 2013 Annual Meeting in Chicago, Ill., March 19-23.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and xenograft tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle® SP DBM — have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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Stored hydrated and ready-to-use, the porcine dermis implant is comprised of non-crosslinked porcine dermis, designed to act as a scaffold that allows for neovascularization and reincorporation with the patient’s own tissue. The implants will be made available in various shapes and sizes.

The implant is sterilized through the Tutoplast® Tissue Sterilization Process, which is a chemical process to sterilize and preserve tissue for implantation. Since the first clinical use in 1971, there has been zero incidence of implant-associated infection from millions of implants sterilized through the process.

The implants will be processed at RTI’s facility in Neunkirchen, Germany for commercial distribution in the U.S. later this year. The facility has been validated for processing and has begun production of the implants.

“We are extremely pleased to have received 510(k) clearance in the first quarter of the year,” said Brian K. Hutchison, president and chief executive officer. “Our newly developed surgical specialties direct distribution team is eager to add the porcine dermis implant to their current biologics portfolio, and this clearance supports our schedule for a full launch later this year.”

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and xenograft tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle™ SP DBM — have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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ALACHUA, Fla. (March 12, 2013) — RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, is launching a new line of biologic implants used in hernia repair procedures at the Americas Hernia Society’s 15th Annual Hernia Repair Conference held at JW Marriott Grande Lakes, Orlando, Fla., March 13-16. The implants will be distributed directly by the company’s new Surgical Specialties business unit.

Tutopatch™ bovine pericardium and Tutomesh™ fenestrated bovine pericardium are non-crosslinked acellular collagen matrices that offer a safe and natural biologic option for hernia repair. The implants offer equivalent strength1 to the leading implant in the market and are sterilized through RTI’s Tutoplast® Tissue Sterilization Process. The Tutopatch and Tutomesh implants are clinically proven and have been implanted by surgeons in Europe for more than 10 years.

Cortiva™ allograft dermis offers high mechanical strength2,3, rapid cellular repopulation4,5,6 and features a faster rehydration time compared with other dermis grafts (rehydrating in 30 seconds on average)7. Dermis is collagenous connective tissue with three-dimensional intertwined fibers. The Cortiva implant is also sterilized through RTI’s Tutoplast Tissue Sterilization Process rendering non-crosslinked acellular dermal matrix that retain mechanical properties of native dermis.

“We are excited to begin direct distribution of Tutopatch and Tutomesh bovine pericardium and Cortiva allograft dermis through our newly developed distribution force for Surgical Specialties,” said Brian K. Hutchison, RTI president and CEO. “Surgeons in need of biologics for hernia repair can expect safe, quality implants from a provider they trust. We will be filling out our hernia portfolio in the coming months with the introduction of our porcine dermis implant.”

The Tutoplast Tissue Sterilization Process is a validated chemical sterilization process that thoroughly penetrates tissue, removing antigenicity and inactivating pathogens. Terminal sterilization using low dose gamma irradiation achieves a sterility assurance level (SAL) of 10-6.

AHS Luncheon Symposium

In addition to launching the implant line at the AHS conference, RTI will also host a luncheon presentation and discussion on Wednesday, March 13 from 12 to 1 p.m. featuring David Nocca, M.D., Ph.D. from the Department of Digestive Surgery at the University Hospital of Montpellier in Montpellier, France. Nocca will present “Biosurgical Technology and Technique-Based Considerations for Ventral Hernia Repair.”

Tutopatch and Tutomesh bovine pericardium and Cortiva allograft dermis are currently available for distribution. For further information, visit the RTI booth, #207, at the Annual Hernia Repair Conference or contact an RTI representative at (877) 612-4287.

¹Data on file at RTI Biologics, Inc.
²Data on file – Doc #7042. Benchtop Testing comparing Cortiva to Standard Tutoplast Sterilized Dermis 2013.
³Hollinsky C, Sandberg S. Measurement of the tensile strength of the ventral abdominal wall in comparison with scar tissue. Clinical Biomechanics. 22 (2007) 88 – 92.
⁴Data on file – 4 & 8 week rat model comparing Cortiva1mm to Standard1mm Tutoplast Sterilized Dermis 2012.5.
⁵Deeken CR, Melman L, Jenkins ED, et al. Histologic and biomechanical evaluation of crosslinked and non-crosslinked biologic meshes in a porcine model of ventral incisional hernia repair. J Am Coll Surg.
2011 May; 212(5):880-8.
⁶Novitsky YW, Rosen MJ. The biology of Biologics: Basic Science and Clinical Concepts. Plast Reconstr Surg.
2012 Nov;130(5 Suppl 2): 9S-17S.
⁷Data on file – Rehydration study comparing Cortiva to Standard Tutoplast Sterilized Dermis 2013.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and xenograft tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle® SP DBM — have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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ALACHUA, Fla. (Feb. 7, 2013) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the fourth quarter and full year of 2012 as follows:

Quarterly Highlights:
• Achieved quarterly revenues of $44.6 million, a 4 percent increase over the fourth quarter of 2011.
• Achieved quarterly net income of $2.3 million, or $0.04 per fully diluted share
• Achieved quarterly revenues of $5.8 million in the dental business, a 21 percent increase over the fourth quarter of 2011.
• Achieved quarterly revenues of $10.3 million in the spine business, a 19 percent increase over the fourth quarter of 2011.
• Achieved quarterly revenues of $7.4 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 6 percent increase over the fourth quarter of 2011.

2012 Full Year Highlights:
• Achieved record annual revenues of $178.1 million, a 5 percent increase over 2011.
• Achieved annual net income of $8.4 million, or $0.15 per fully diluted share. Excluding a pre-tax litigation settlement charge of $2.4 million, or $0.03 per fully diluted share, taken in the second quarter, the company achieved annual net income per fully diluted share of $0.18.
• Achieved annual revenues of $54.6 million in the U.S. direct distribution organization, a 6 percent increase over 2011.
• Achieved annual revenue growth in every business with the exception of the spine business.
• Launched or released for distribution 18 new implants or implant enhancements, which accounted for more than $2 million of revenue for the year.
• Achieved operating cash flow of $20.8 million.

Fourth Quarter 2012

Worldwide revenues of $44.6 million for the fourth quarter of 2012 increased 4 percent compared to the fourth quarter of 2011. Domestic revenues of $40.1 million for the fourth quarter of 2012 grew by 6 percent compared to the fourth quarter of 2011, primarily based on the strength of the dental, spine and BGS/GO businesses and were offset by weakness in the surgical specialties and sports medicine businesses. International revenues of $4.5 million for the fourth quarter of 2012 decreased 12 percent as compared to the fourth quarter of 2011. On a constant currency basis, international revenues decreased 9 percent as compared to the fourth quarter of 2011.

For the fourth quarter of 2012, the company reported net income of $2.3 million and net income per fully diluted share of $0.04, based on 56.3 million fully diluted shares outstanding, compared to net income of $2.4 million or $0.04 per fully diluted share for the fourth quarter of 2011, based on 55.7 million fully diluted shares outstanding.

“Revenues in the fourth quarter met expectations and were driven primarily by continued growth in our dental, spine and BGS/GO businesses,” said Brian K. Hutchison, president and chief executive officer of RTI. “Overall, we are pleased with our growth for the quarter, despite the unanticipated impact on direct distribution revenue due to customer reaction to the FDA warning letter in the U.S. that was received in October 2012. International revenues were negatively impacted by inaccuracies in European media coverage about the company and the tissue industry. We continue to work through these issues and will bring them to resolution.”

Full Year 2012

Worldwide revenues of $178.1 million for the full year of 2012 were up 5 percent compared to 2011. Domestic revenues of $156.8 million for the full year of 2012 were up 6 percent compared to 2011 primarily based on the strength of the dental, BGS/GO, and sports medicine businesses. International revenues of $21.3 million for the full year of 2012 increased 1 percent compared to 2011 primarily based on the strength of the sports medicine and BGS/GO businesses. On a constant currency basis, international revenues increased 8 percent for the full year of 2012 compared to 2011.

For the full year of 2012, the company reported net income of $8.4 million and net income per fully diluted share of $0.15, based on 56.1 million fully diluted shares outstanding, compared to a net income of $8.4 million and net income per fully diluted share of $0.15, based on 55.4 million fully diluted shares outstanding. Excluding a pre-tax litigation charge of $2.4 million, or $0.03 cents per fully diluted share, taken in the second quarter, net income per fully diluted share for the full year 2012 was $0.18.

Fiscal 2013 and First Quarter Outlook

The company expects full year revenues for 2013 to be between $178 million and $182 million. Full year net income per fully diluted share is expected to be in the range of $0.17 to $0.19, based on 56.7 million fully diluted shares outstanding. In 2013, the company will make investments in distribution, marketing and development activities to support the launch of its direct surgical specialties business and expand its presence in general orthopedics.

For the first quarter of 2013, the company expects revenues to be between $38 million and $39 million, and net income per fully diluted share to be approximately $0.02.

“Due to customer reaction to the FDA warning letter and inaccuracies in media coverage in 2012, we expect a weaker first half of the year. Following the anticipated closure of the warning letter, expansion of our direct distribution business and the launch of several new implants, we expect the second half of the year to be strong.” said Hutchison. “We also expect that the investments we are making in new products and direct distribution, combined with our active business development efforts, will accelerate our future revenue growth.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the fourth quarter and full year results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The BioCleanse® Tissue Sterilization Process, the Tutoplast® Tissue Sterilization Process and the Cancelle™ SP Demineralization Process have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory actions or approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.
 

Use of Non-GAAP Financial Measures

To supplement RTI Biologic’s condensed consolidated financial statements presented on a GAAP basis, the company discloses certain non-GAAP financial measures that exclude certain amounts, including non-GAAP net income and non-GAAP net income per fully diluted share. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included in the reconciliation above.

The following is an explanation of the adjustment that management excluded as part of the non-GAAP measures for the year ended December 31, 2012 as well as the reasons for excluding the individual item:

Litigation settlement – This adjustment represents a charge and relates to a litigation settlement of certain BTS related lawsuits. Management removes the amount of the litigation settlement charge from the Company’s operating results to assist in assessing its operating performance in the current period and to supplement a comparison to the Company’s past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial Measures

Non-GAAP net income and non-GAAP net income per fully diluted share should not be considered in isolation, or as a replacement for GAAP measures.

Usefulness of Non-GAAP Financial Measures to Investors

The Company believes that presenting non-GAAP net income and non-GAAP net income per fully diluted share in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making which excludes the litigation settlement charge. The Company further believes that providing this information better enables RTI Biologic’s investors to understand the Company’s overall core performance and to evaluate the methodology used by management to assess and measure such performance.

RTI will host a conference call and simultaneous audio webcast to discuss the fourth quarter and year end 2012 results at 8:30 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The BioCleanse® Tissue Sterilization Process, the Tutoplast® Tissue Sterilization Process and the Cancelle™ SP Demineralization Process have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

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RTI, which is headquartered in Alachua, Fla., is one of the leading providers of sterile biologic implants for patients around the world. Its Logistics and Technology Center, a $14 million investment, will be home to the company’s research and development offices and laboratories, clean rooms, warehouse, shipping and finished implants and other support functions. In addition, the new facility will include space for production of RTI’s forthcoming map3™ cellular allogeneic bone grafts.

“RTI began operations in 1998 when it spun off from the University of Florida Tissue Bank. At that time, our offices, labs and clean rooms occupied approximately 45,000 square feet of total space in Progress Corporate Park, housing about 200 people,” said Brian K. Hutchison, RTI president and CEO. “Today we have more than 700 employees globally. This new facility represents the continued growth and expansion of our company and allows us room for future growth.”

The Logistics and Technology Center, along with the company’s recent acquisition of a 15,425 square foot office building in the park, will expand RTI’s total occupied space to about 200,000 square feet.

“At RTI, we are committed to supporting the communities in which we operate and participating in the economic development of our regions,” said Hutchison. “We are excited to expand our facilities in Alachua, Fla. and are glad to be a part of a community that is focused on fostering innovation and success.”

Occupancy of RTI’s Logistics and Technology Center is expected in early 2014. The project is managed by Charles Perry Partners, Inc. Other groups that have been instrumental include Affiliated Engineers, Causseaux, Hewett, & Walpole, Inc., the City of Alachua, RS&H and Gyllstrom Architecture and Consulting, Inc.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and xenograft tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle™ SP DBM — have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.
RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

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BioReady DBM Putty is a ready-to-use demineralized bone matrix (DBM) implant that provides convenience, robust handling, verified osteoinductive* potential and sterility. It was introduced at the RTI Biologics exhibit at the North American Spine Society (NASS) annual meeting in Dallas this week.

BioReady DBM Putty and Putty with Chips are 100 percent allograft, and each donor lot is tested for osteoinductive potential. Data shows that BioReady DBM Putty retains its osteoinductive potential throughout its entire shelf life. This ready-to-use implant does not require any preparation, such as thawing or mixing, and it is available in various sizes for use as a bone void filler in many types of surgical procedures.

“BioReady is an exciting allograft solution that complements our portfolio of DBM implants including BioSet and BioAdapt,” said Roger Rose, executive vice president and chief commercial officer for RTI Biologics. “This ready-to-use implant addresses a significant clinical need and ensures that we maximize every gift of donation received.”

RTI’s implants are sterilized through processes validated by tissue type. BioReady DBM Putty is sterilized through the Cancelle™ SP Demineralization Process. Through a combination of oxidative treatments and acid or alcohol washes, cellular debris is removed and pathogens are inactivated. Cleansing rinses remove residual chemicals, maintaining biocompatibility, and terminal low temperature, low dose gamma irradiation achieves device-level sterility, preserving the utility of the graft.

BioReady DBM Putty is currently available for distribution. For further information, contact an RTI representative at (800) 624-7238.

*DBM or representative finished implant is either assayed in vivo in the modified athymic nude rat for bone formation or in vitro for endogenous BMP-2 as a surrogate test marker for osteoinductive potential. Because the combination of various proteins is responsible for osteoinductive potential, DBM when assayed in vitro, is also screened for the presence of BMP-7. Findings from an in vitro assay or animal model are not necessarily predictive of human clinical results.

About RTI Biologics Inc.
RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The BioCleanse® Tissue Sterilization Process, the Tutoplast® Tissue Sterilization Process and the Cancelle™ SP Demineralization Process have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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ALACHUA, Fla. (Oct. 25, 2012) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the third quarter of 2012 as follows:

Quarterly Highlights:
•Achieved quarterly revenues of $44.6 million, a 5 percent increase over the third quarter of 2011.
•Achieved quarterly net income per fully diluted share of $0.05.
•Achieved quarterly revenues of $11.8 million in the sports medicine business, a 7 percent increase over the third quarter of 2011.
•Achieved quarterly revenues of $7.9 million in the surgical specialties business, a 5 percent increase over the third quarter of 2011.
•Achieved quarterly revenues of $7.9 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 13 percent increase over the third quarter of 2011.
•Achieved quarterly revenues of $5.2 million in the dental business, a 15 percent increase over the third quarter of 2011.
•Achieved quarterly revenues of $12.8 million in the U.S. direct distribution organization, a 5 percent increase over the third quarter of 2011. The U.S. direct distribution organization includes sports medicine and certain BGS/GO implants.

“Revenues in the third quarter met expectations and were driven primarily by continued growth in our dental, BGS/GO, direct sports medicine and surgical specialties businesses,” said Brian K. Hutchison, president and chief executive officer of RTI.

Worldwide revenues of $44.6 million for the third quarter of 2012 increased 5 percent compared to the third quarter of 2011. Domestic revenues of $39.6 million for the third quarter of 2012 grew by 6 percent compared to the third quarter of 2011, primarily based on the strength of the dental, BGS/GO, surgical specialties and direct sports medicine businesses and were offset by continued weakness in the spine business. International revenues of $4.9 million for the third quarter of 2012 declined slightly as compared to the third quarter of 2011. On a constant currency basis, international revenues increased 9 percent as compared to the third quarter of 2011 due to higher distributions of BGS/GO.

For the third quarter of 2012, the company reported net income of $2.8 million and net income per fully diluted share of $0.05, based on 56.1 million fully diluted shares outstanding, compared to net income of $2.7 million or $0.05 per fully diluted share for the third quarter of 2011, based on 55.4 million fully diluted shares outstanding. Net income per fully diluted share for the third quarter of 2011 was favorably impacted by approximately $0.01 due to the de-recognition of an uncertain tax liability as a result of Internal Revenue Service guidance provided during the third quarter of 2011 and applicable to the deductibility of transaction fees incurred as part of the Tutogen merger in 2008.

FDA Warning Letter

On Oct. 23, 2012 the company received a warning letter from the FDA related to environmental monitoring activities in certain areas of its Alachua, Fla. processing facility. The company is committed to actively working with the FDA to address their concerns. The warning letter does not restrict the company’s ability to process or distribute implants, nor does it require the withdrawal of any implants from the marketplace. The issuance of the warning letter has no impact on patient safety.

“We pride ourselves on operating in the right way, and are dedicated to providing high quality, safe biologic implants to surgeons and their patients,” Hutchison said. “While this issue has no impact on patient safety, we take this matter very seriously, and are committed to fully resolve any issues.”

Fiscal 2012 and Fourth Quarter Outlook

Based on results through the first three quarters, the company is narrowing its full year revenue guidance for 2012. The company expects full year revenues for 2012 to be between $178 million and $179 million.

The company expects full year net income per fully diluted share for 2012 to be approximately $0.15, based on 56.1 million shares outstanding. Excluding a pre-tax litigation settlement charge of $2.35 million taken in the second quarter of 2012, or $0.03 per fully diluted share, the company expects full year net income per fully diluted share for 2012 to be approximately $0.18, based on 56.1 million shares outstanding.

For the fourth quarter of 2012, the company expects revenues to be between $44 million and $45 million, and net income per fully diluted share to be $0.04.

“With solid results for the third quarter of 2012, we remain on track to meet our financial goals for the year,” Hutchison said.

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the third quarter results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and animal tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The BioCleanse® Tissue Sterilization Process, the Tutoplast® Tissue Sterilization Process and the Cancelle™ SP Demineralization Process have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.
 
 

Use of Non-GAAP Financial Measures
To supplement RTI Biologic’s condensed consolidated financial statements presented on a GAAP basis, the company discloses certain non-GAAP financial measures that exclude certain amounts, including non-GAAP net income and non-GAAP net income per fully diluted share. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included in the reconciliation above.

The following is an explanation of the adjustment that management excluded as part of the non-GAAP measures for the nine month period ended September 30, 2012 as well as the reasons for excluding the individual item:

Litigation settlement – This adjustment represents a charge and relates to a litigation settlement of certain BTS related lawsuits. Management removes the amount of the litigation settlement charge from the Company’s operating results to assist in assessing its operating performance in the year-to-date period and to supplement a comparison to the Company’s past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial Measures
Non-GAAP net income and non-GAAP net income per fully diluted share should not be considered in isolation, or as a replacement for GAAP measures.

Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that presenting non-GAAP net income and non-GAAP net income per fully diluted share in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making which excludes the litigation settlement charge. The Company further believes that providing this information better enables RTI Biologic’s investors to understand the Company’s overall core performance and to evaluate the methodology used by management to assess and measure such performance.

RTI will host a conference call and simultaneous audio webcast to discuss the third quarter results at 8:30 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

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According to Ted Beemer, M.D., medical administrator/surgeon for CURE Honduras, the cyst extended from the front of the patient’s pelvic bone to her sacroiliac joint and caused extreme pain, presumably due to the weakening bone directly over the hip joint and adjacent to the sacroliliac joint. The patient was confined to walking with crutches for two months leading up to the surgery due to pain and fear of further collapse of the bone around the hip joint. The donated allograft paste was needed because obtaining sufficient autograft — tissue from one’s own body — risked weakening the side used for walking during the surgery recovery period.

“The surgery went well, and I fully expect her to make a complete recovery thanks to the substantial allograft donation by RTI,” Beemer said. “I am certain that her recovery would have been significantly deterred if we had needed to take that much autologous bone from her other side and/or lower extremities. In fact, she would have been confined to a wheelchair for weeks instead of being able to walk with crutches.

“We are very appreciative to RTI Biologics for its donation. It made a huge difference in this child’s treatment and will continue to affect her recuperation.”

Since it was established in 2004, CURE Honduras has provided life-changing orthopedic treatment for thousands of children in Honduras. The hospital, which does not turn away anyone under the age of 19, regardless of whether or not they can afford care, serves approximately 4,500 patients each year and performs about 550 operations.

“Our mission at RTI is to improve lives through biologic solutions to achieve life-restoring and life-saving results,” said Brian K. Hutchison, president and CEO. “Over the years, we have provided numerous allograft donations such as this, and we will continue to do so. We take great pride in playing a part in helping those in need return to their normal activities.”

Allograft is tissue surgically transplanted from one person to another. Most allograft tissue is recovered surgically after someone dies. The donor must have consented to the donation before death or the donor’s family must consent after death. Tissue transplantation can have many benefits for recipients, including repairing tissue defects caused by trauma or disease, restoring mobility and regaining independence in daily activities. The selfless gift made by donors and their families saves the quality of life for patients globally.

Allografts are used as an alternative to synthetic and metal implants. However, unlike synthetic or metal implants, allografts are a natural and biocompatible scaffold, allowing the recipient’s body to remodel it into his or her own tissue over time. Using allograft tissue rather than an autograft eliminates a second surgical site, allowing the recipient to avoid additional pain, risk and a possibly longer hospital stay. In addition, in some cases, it is not possible to obtain an autograft, so allografts are a natural solution.

RTI uses stringent donor screening, laboratory testing and proprietary, validated sterilization processes to ensure patients’ safety. These redundant safeguards provide the highest level of confidence that patients will receive safe, high quality tissue. RTI honors the gift of tissue donation by treating the tissue with respect, by finding new ways to use the tissue to help patients and by helping as many patients as possible from each donation.

About CURE International

CURE International is the largest provider of reconstructive surgery to disabled children in the developing world and operates hospitals and programs in 25 nations. Since opening the doors of its first surgical teaching hospital in Kijabe, Kenya in 1998, CURE’s focus on bringing healing to developing nations has resulted in more than 1.8 million patient visits and over 128,000 surgeries to correct physically disabling conditions. CURE has also trained more than 5,200 medical professionals raising the standard of care in the countries where it operates. To learn more, visit www.cure.org.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and xenograft tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. These processes — BioCleanse®, Tutoplast® and Cancelle™ SP DBM — have a combined record of more than four million implants distributed with zero incidence of implant-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

ALACHUA, Fla. (July 31, 2012) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the second quarter of 2012 as follows:

Quarterly Highlights:
•Achieved quarterly revenues of $45.2 million, a 4 percent increase over the second quarter of 2011.
•Achieved quarterly net income per fully diluted share of $0.02, a decrease of $0.02 compared to the second quarter of 2011. Excluding a pre-tax litigation settlement charge of $2.35 million in the quarter, or $0.03 per fully diluted share, the company achieved quarterly net income per fully diluted share of $0.05.
•Achieved quarterly revenues of $8.5 million in the surgical specialties business, an 18 percent increase over the second quarter of 2011.
•Achieved quarterly revenues of $7.0 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 12 percent increase over the second quarter of 2011.
•Achieved quarterly revenues of $13.3 million in the sports medicine business, a 10 percent increase over the second quarter of 2011.
•Achieved international revenues of $6.0 million, a 9 percent increase or a 19 percent increase on a constant currency basis over the second quarter of 2011.
•Achieved quarterly revenues of $14.0 million in the U.S. direct distribution organization, an 8 percent increase over the second quarter of 2011. The U.S. direct distribution organization includes sports medicine and certain BGS/GO implants.

“We are pleased with our second quarter results, which exceeded our expectations and were driven primarily by continued growth in our surgical specialties, direct sports medicine and BGS/GO businesses,” said Brian K. Hutchison, president and chief executive officer of RTI.

Worldwide revenues of $45.2 million for the second quarter of 2012 increased 4 percent compared to the second quarter of 2011. Domestic revenues of $39.2 million for the second quarter of 2012 grew by 3 percent compared to the second quarter of 2011, primarily based on the strength of the surgical specialties, direct sports medicine and dental businesses and were offset by unfavorable comparisons in the spine business. International revenues of $6.0 million increased 9 percent compared to the second quarter of 2011 primarily due to higher export revenue in the sports medicine and BGS/GO businesses. On a constant currency basis, international revenues increased 19 percent as compared to the second quarter of 2011.

In 2005, the company was named as a party, along with a number of other recovery and processor defendants, in lawsuits relating to the tissue recovery practices of Biomedical Tissue Services Ltd. (BTS), an unaffiliated recovery agency. During the second quarter of 2012, the company accrued a pre-tax charge of $2.35 million, or $0.03 per fully diluted share, to settle certain cases related to these proceedings.

For the second quarter of 2012, the company reported net income of $1.3 million and net income per fully diluted share of $0.02, based on 56.0 million fully diluted shares outstanding, compared to net income of $2.0 million or $0.04 per fully diluted share for the second quarter of 2011, based on 55.3 million fully diluted shares outstanding. Excluding the litigation settlement charge of $0.03 per fully diluted share, net income per fully diluted share in the second quarter of 2012 was $0.05.

Fiscal 2012 and Third Quarter Outlook

As a result of first half results that exceeded expectations and better visibility into second half trends, the company is raising its full year revenues guidance for 2012. The company now expects full year revenues for 2012 to be between $177 million to $179 million, as compared to prior guidance of $176 million to $178 million. As a result of the litigation settlement charge of $0.03 per fully diluted share taken in the second quarter, full year net income per fully diluted share is now expected to be in the range of $0.14 to $0.15, based on 56.1 million shares outstanding, as compared to prior guidance of $0.16 to $0.17 per fully diluted share.

For the third quarter of 2012, the company expects revenues to be between $44 million and $45 million and net income per fully diluted share to be approximately $0.04.

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the second quarter results at 8:00 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

RTI will host a conference call and simultaneous audio webcast to discuss the second quarter results at 8:00 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

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ALACHUA, Fla. (April 26, 2012) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the first quarter of 2012 as follows:

Quarterly Highlights:

• Achieved quarterly revenues of $43.7 million, an increase of 8 percent compared to the first quarter of 2011 and exceeding the company’s guidance of between $41 and $42 million.
• Achieved quarterly earnings per fully diluted share of $0.04, an increase of $0.02 compared to the first quarter of 2011 and exceeding the company’s guidance of $0.03 per fully diluted share.
• Achieved quarterly revenues of $13.4 million in the direct sports medicine business, a 15 percent increase compared to the first quarter of 2011.
• Achieved quarterly revenues of $7.0 million in the bone graft substitutes and general orthopedic (BGS/GO) business, a 15 percent increase compared to the first quarter of 2011.
• Achieved international revenues of $5.9 million, a 9 percent increase compared to the first quarter of 2011.
• Achieved quarterly revenues of $14.1 million in the U.S. direct distribution organization, a 16 percent increase over the first quarter of 2011. The U.S. direct distribution organization includes sports medicine and some BGS/GO implants.

“We are pleased with our first quarter results, which exceeded our expectations and were driven primarily by growth in our direct sports medicine and BGS/GO businesses, as well as in our dental business,” said Brian K. Hutchison, president and CEO of RTI.

Worldwide revenues of $43.7 million for the first quarter of 2012 were up 8 percent compared to the first quarter of 2011. Domestic revenues of $37.9 million for the first quarter of 2012 were up 7 percent compared to the first quarter of 2011, primarily based on the strength of the sports medicine, BGS/GO and dental businesses. International revenues of $5.9 million increased 9 percent compared to the first quarter of 2011 due to the strength of the surgical specialties business and the export of sports medicine and BGS/GO implants. On a constant currency basis, international revenues increased 12 percent compared to the first quarter of 2011.

For the first quarter of 2012, the company reported net income of $2.0 million and net income per fully diluted share of $0.04, based on 55.9 million fully diluted shares outstanding, compared to net income of $1.2 million and net income per fully diluted share of $0.02 based on 55.0 million fully diluted shares outstanding.

Fiscal 2012 and Second Quarter Outlook

As a result of better than expected results in the first quarter, the company is raising its full year revenue guidance for 2012. The company now expects full year revenues for 2012 to be between $176 million and $178 million, as compared to prior guidance of between $174 million and $176 million. Full year net income is expected to be between $0.16 and $0.17 per fully diluted share, based on 56.1 million shares outstanding, as compared to our prior guidance of between $0.15 and $0.17 per fully diluted share.

For the second quarter of 2012, the company expects revenues to be between $43 million and $44 million, and net income per fully diluted share to be approximately $0.04.

“We had a strong start to the year with solid results for the first quarter of 2012,” Hutchison said. “Based on the strength of the first quarter, we elected to raise our full year revenue guidance and have tightened our earnings guidance. As stated in our January 2012 release, we are investing in new product development initiatives and direct distribution during this year, which we anticipate will positively impact our future revenue growth.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the first quarter 2012 results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

RTI will host a conference call and simultaneous audio webcast to discuss the first quarter results at 8:30 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

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RTI will be implementing Stericycle Sustainable Solutions®, which will manage regulated medical waste, solid and municipal waste, as well as recycling and other materials. This relationship makes RTI the first U.S. biotech firm to implement the service.

The expected benefits of the program are increased recycling and an overall waste management expense reduction. RTI will focus on converting increasing percentages of waste into recyclable goods. Widespread access to recycling equipment and employee education programs will lead to the proper classification and disposal of waste and other materials. The increase in recyclable goods is expected to help offset the expense of waste management, resulting in a significant cost savings to the company.

“By consolidating our waste management into a single company, we’ll be able to more efficiently monitor our waste streams and take proactive measures where we can to reduce our carbon footprint,” said Brian K. Hutchison, president and chief executive officer of RTI.

More than 30 recycling containers have been placed strategically throughout each of RTI’s owned buildings in Alachua, Fla., and recycling-based educational programming is being implemented to train staff on proper disposal.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologics implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The processes – the BioCleanse® Tissue Sterilization Process, Cancelle® SP DBM Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

BioAdapt™ DBM

BioAdapt™ DBM is a flexible demineralized bone matrix (DBM) solution with unique handling capabilities. Designed to maximize ease of use, BioAdapt is a sterile, room-temperature implant offered in five pre-shaped options to meet the bone grafting needs of trauma, reconstructive, spine and extremity surgeons. With foam-like properties, BioAdapt expands with hydration to adapt to the contours of thebony defect. This versatile implant offers flexible, yet cohesive handling characteristics, making it easy to shape or mold to fit various defects.

The BioAdapt carrier component is sterilized through the BioCleanse® Tissue Sterilization Process and the DBM component is sterilized through the Cancelle® SP DBM Sterilization Process, which was specifically designed to preserve protein activity. BioAdapt DBM is available exclusively from RTI Biologics. For more information or to speak with an RTI’s customer service representative please contact (800) 624-7238.

Fresh-stored Osteochondral (OC) Humeral Head

RTI Biologics’ Fresh-stored OC Humeral Head allograft enables surgeons to resurface osteochondral defects with mature hyaline cartilage and healthy subchondral bone in a single procedure. The Fresh-stored OC Humeral Head is cleansed, processed and preserved to maintain chondrocyte viability. Fresh-stored osteochondral allografts are more desirable than frozen because hyaline cartilage exhibits diminished cell viability and matrix degeneration after freezing. In addition, cartilage resurfacing allows for repair of damaged subchondral bone and provides mature hyaline cartilage, which can increase load-bearing capability compared to fibrocartilage. Over time, the graft allows for incorporation into the patient’s native tissue, which may result in a smooth, functional cartilage surface in the joint. For more information or to speak with an RTI’s customer service representative please contact (800) 624-7238.

AllograftInfo.com

AllograftInfo.com is an informational website designed to educate patients and the general public about allograft tissue. AllograftInfo.com explores the use of allograft, or human donated tissue, in surgery, as well as provides links to relevant research and articles. The website also addresses several frequently asked questions and provides suggestions on what patients could ask their surgeon when considering allograft.

AllograftInfo.com was created to provide patients a convenient and easy-to-understand portal for education on allograft tissue as an available option in a variety of surgeries.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologics implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. The processes – the BioCleanse® Tissue Sterilization Process, Cancelle® SP DBM Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with internationa6l locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

ALACHUA, Fla. (Jan. 31, 2012) – RTI Biologics Inc. (RTI) (Nasdaq: RTIX), a leading provider of orthopedic and other biologic implants, reported operating results for the fourth quarter and full year of 2011 as follows:

Quarterly Highlights:

• Achieved quarterly revenues of $42.9 million.
• Achieved quarterly net income of $2.4 million, or $0.04 per fully diluted share.
• Achieved quarterly revenues of $14.2 million in the U.S. direct distribution organization, an 11 percent increase over the fourth quarter of 2010. The U.S. direct distribution organization includes sports medicine and some bone graft substitute/general orthopedic (BGS/GO) implants.

2011 Full Year Highlights:

• Achieved record annual revenues of $169.3 million.
• Achieved annual net income of $8.4 million, or $0.15 per fully diluted share.
• Achieved annual revenues of $51.4 million in the U.S. direct distribution organization, a 10 percent increase over 2010.
• Achieved annual revenue growth in every business as reported with the exception of the dental business line. The decrease in reported dental revenues is the result of the change in the terms of the dental distributor agreement, which was announced in the third quarter of 2010. If the new terms with our distributor had been effective for the full year of 2010, and excluding dental stocking orders related to the agreement, dental revenues would have increased by 11 percent compared to the full year of 2010.
• Launched or released for distribution 18 new products or product enhancements over the year, which accounted for more than $4 million of revenue for the year.
• Achieved operating cash flow of $27.8 million.

“We are very pleased with our fourth quarter results, which ended a strong year of execution for RTI,” said Brian K. Hutchison, president and chief executive officer of RTI. “Despite the challenging economic environment in 2011, we saw growth in all of our business lines while significantly increasing cash flow, decreasing inventories and improving gross margins each quarter.”

Fourth Quarter 2011

Worldwide revenues of $42.9 million for the fourth quarter of 2011 were down 5 percent, on an as reported basis, compared to the fourth quarter of 2010, but were up 2 percent excluding dental stocking orders in the fourth quarter of 2010 as a result of the new agreement with the company’s dental distributor. Domestic revenues of $37.8 million for the fourth quarter of 2011 were down 8 percent compared to the fourth quarter of 2010. Excluding the dental stocking orders from the company’s dental distributor in the fourth quarter of 2010, domestic revenues would have been comparable to the fourth quarter of 2010, primarily based on the strength of the sports medicine and BGS/GO businesses. International revenues of $5.1 million increased 20 percent compared to the fourth quarter of 2010 due to the strength of the international dental business, along with increased volume of surgical specialties, BGS/GO and sports medicine implants into certain countries. On a constant currency basis, international revenues increased 21 percent compared to the fourth quarter of 2010.

For the fourth quarter of 2011, the company reported net income of $2.4 million and net income per fully diluted share of $0.04, based on 55.7 million fully diluted shares outstanding, compared to net income of $2.8 million and net income per fully diluted share of $0.05 based on 54.9 million fully diluted shares outstanding. Fourth quarter 2010 net income per share was favorably impacted by approximately $0.01 due to recognition of the full 2010 research and experimentation tax credit in the quarter.

Full Year 2011

Worldwide revenues of $169.3 million for the full year of 2011 were up 2 percent compared to 2010, on an as reported basis, but were up 10 percent if the new terms with the company’s dental distributor had been in effect for the full year of 2010 and excluding the related dental stocking orders. Domestic revenues of $148.3 million for the full year of 2011 were comparable to 2010. If the new terms with the company’s dental distributor had been effective for the full year of 2010 and excluding the related dental stocking orders, domestic revenues would have increased 9 percent, primarily based on the strength of the sports medicine, spine, surgical specialties and BGS/GO businesses. International revenues of $21 million for the full year of 2011 increased 15 percent, compared to 2010, primarily on the strength of the international dental and surgical specialties businesses. On a constant currency basis, international revenues increased 10 percent for the full year of 2011 compared to 2010.

For the full year of 2011, the company reported net income of $8.4 million and net income per fully diluted share of $0.15, based on 55.4 million fully diluted shares outstanding, compared to a net loss of $129 million and a net loss per fully diluted share of $2.36 based on 54.7 million fully diluted shares outstanding. Full year 2011 results were favorably impacted by approximately $0.01 due to the de-recognition of an uncertain tax liability as a result of Internal Revenue Service guidance provided during the third quarter of 2011 and applicable to the deductibility of transaction fees incurred as part of the Tutogen merger in 2008. Full year 2010 results included a decrease in net income of $134.7 million, or $2.46 per fully diluted share, due to a goodwill impairment charge in the third quarter of 2010.

Fiscal 2012 and First Quarter Outlook

The company expects full year revenues for 2012 to be between $174 million and $176 million. Full year net income per fully diluted share is expected to be in the range of $0.15 to $0.17, based on 55.8 million fully diluted shares outstanding.

For the first quarter of 2012, the company expects revenues to be between $41 million and $42 million, and net income per fully diluted share to be approximately $0.03.

“We expect that revenues in 2012 will be driven by continued growth in our direct distribution and international groups,” Hutchison said. “We anticipate growth rates at or above the market in all areas of our business. Over the course of 2012, we will be increasing our investment in new product development initiatives that we anticipate will accelerate our future revenue growth.”

Conference Call

RTI will host a conference call and simultaneous audio webcast to discuss the fourth quarter results at 8:30 a.m. ET today. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening and using proprietary processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.
 
To view the XBRL filing, please click here.

Use of Non-GAAP Financial Measures

To supplement RTI Biologic’s condensed consolidated financial statements presented on a GAAP basis, the company discloses certain non- GAAP financial measures that exclude certain amounts, including non-GAAP net income and non –GAAP net income per fully diluted share. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included in the reconciliation above.

The following is an explanation of the adjustment that management excluded as part of the non-GAAP measures for the year ended December 31, 2010 as well as the reasons for excluding the individual item:

Goodwill impairment – This adjustment represents the write-off of remaining goodwill created through a purchase transaction. Management removes the impact of the goodwill impairment charge from the company’s operating results to assist in assessing its operating performance in the current period and to supplement a comparison to the company’s past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial Measures

Non-GAAP net income and non-GAAP net income per fully diluted share should not be considered in isolation, or as a replacement for GAAP measures.

Usefulness of Non-GAAP Financial Measures to Investors

The company believes that presenting non-GAAP net income and non-GAAP net income per fully diluted share in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making, which excludes the goodwill impairment. The company further believes that providing this information better enables RTI Biologic’s investors to understand the company’s overall core performance and to evaluate the methodology used by management to assess and measure such performance.

RTI will host a conference call and simultaneous audio webcast to discuss the fourth quarter results at 8:30 a.m. ET the same day. The conference call can be accessed by dialing (877) 383-7419. The webcast can be accessed through the investor section of RTI’s website at www.rtix.com. A replay of the conference call will be available on the RTI website for one month following the call.

About RTI Biologics Inc.

RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental and other specialty surgeries.

RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of millions of implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.

RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States and is a member of AdvaMed.

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s website at www.rtix.com or the SEC’s website at www.sec.gov.

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