Elutia Announces Sale of BioEnvelope Business to Boston Scientific Corporation for $88 Million - Transaction affirms the strength of Elutia's proprietary drug-eluting biologics platform and fully funds advancement of NXT

Elutia Announces Sale of BioEnvelope Business

to Boston Scientific Corporation for $88 Million

- Transaction affirms the strength of Elutia's

proprietary drug-eluting biologics platform and fully funds advancement of NXT-41 in breast reconstruction

- Company to provide update at the H.C. Wainwright

27th Annual Global Investment Conference on Wednesday, September 10 at 9:30 a.m. ET -

GAITHERSBURG, Md., September 9, 2025 - Elutia

Inc. (Nasdaq: ELUT) ("Elutia" or the "Company"), a pioneer in drug-eluting biomatrix technologies, today announced

it has entered into a definitive agreement to sell its EluPro and CanGaroo bioenvelopes, designed to protect patients receiving

implantable medical devices, to Boston Scientific Corporation (NYSE: BSX) for $88 million in cash. The transaction underscores the value

of Elutia's proprietary drug-eluting biologic technology platform and enables the Company to complete development and commercialization

of its near-term blockbuster pipeline without the need for shareholder dilution.

"EluPro has clearly demonstrated that our

proprietary drug-eluting biologics platform works at scale," said Dr. Randy Mills, CEO of Elutia. "With the successful launch

of EluPro, seven national group purchasing organization contracts secured and more than 160 value analysis committee approvals, we have

shown that we can develop, manufacture and commercialize these highly regulated breakthrough products, and that they are valued by physicians.

"Now, with a transformed balance sheet,

an established commercial engine and a proven team, we are ready to repeat our success with NXT-41x. This novel technology is designed

to transform the $1.5 billion breast reconstruction market and help women recovering from breast cancer to thrive without compromise,"

The deal is expected to close in the fourth quarter

of 2025, subject to customary closing conditions.

Transformative Impact for Shareholders

The transaction marks a pivotal advance for Elutia,

strengthening the Company's financial position and unlocking long-term shareholder value:

BofA Securities is acting as financial advisor

to Elutia in the sale of its BioEnvelope business.

Company Presentation

Members of the Company's management

team will provide a company update at the H.C. Wainwright 27th Annual Global Investment Conference. The presentation will begin on

Wednesday, September 10 at 9:30 a.m. Eastern Time / 6:30 a.m. Pacific Time. A webcast of the presentation can be accessed by

Please log in approximately 10 minutes prior to

the scheduled start time. A live and archived webcast of the event will be available on the "Investors" section of the Elutia

website at http://investors.elutia.com/.

Elutia develops and commercializes drug-eluting

biomatrix products to improve compatibility between medical devices and the patients who need them. With a growing population in need

of implantable technologies, Elutia's mission is humanizing medicine so patients can thrive without compromise. For more information,

visit www.Elutia.com.

Forward-Looking Statements

This press release contains "forward-looking

statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange

Act of 1934, as amended. Forward-looking statements can be identified by words such as "projects," "may," "will,"

"could," "would," "should," "believes," "expects," "anticipates,"

"estimates," "intends," "plans," "potential," "promise" or similar references

to future periods. All statements contained in this press release that do not relate to matters of historical fact should be considered

forward-looking statements, including any statements and information concerning the market reception of EluPro, including the timing and

anticipated success thereof. These forward-looking statements are based on our management's beliefs and assumptions and on information

currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements

are subject to a number of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance

or achievements to be materially different from any future results, performance or achievements expressed or implied in the forward-looking

statements, including, but not limited to the following: our ability to successfully commercialize, market and sell our EluPro product;

our ability to continue as a going concern; our ability to achieve or sustain profitability; the risk of product liability claims and

our ability to obtain or maintain adequate product liability insurance; our ability to defend against the various lawsuits and claims

related to our recalled FiberCel and other viable bone matrix products and avoid a material adverse financial consequence from those lawsuits

and claims; our ability to prevail in lawsuits and claims seeking indemnity, contribution and insurance coverage for FiberCel and other

viable bone matrix product liabilities; the continued and future acceptance of our products by the medical community; our ability to enhance

our products, expand our product indications and develop, acquire and commercialize additional product offerings; our dependence on our

commercial partners and independent sales agents to generate a substantial portion of our net sales; our dependence on a limited number

of third-party suppliers and manufacturers, which, in certain cases are exclusive suppliers for products essential to our business; our

ability to successfully realize the anticipated benefits of the November 2023 sale of our Orthobiologics business; physician awareness

of the distinctive characteristics, benefits, safety, clinical efficacy and cost-effectiveness of our products; our ability to compete

against other companies, most of which have longer operating histories, more established products and/or greater resources than we do;

pricing pressure as a result of cost-containment efforts of our customers, purchasing groups, third-party payors and governmental organizations

that could adversely affect our sales and profitability; our ability to obtain regulatory approval or other marketing authorizations by

the FDA and comparable foreign authorities for our products and product candidates; our ability to obtain, maintain and adequately protect

our intellectual property rights; and other important factors which can be found in the "Risk Factors" section of Elutia's

public filings with the Securities and Exchange Commission ("SEC"), including Elutia's Annual Report on Form 10-K for

the year ended December 31, 2024, as such factors may be updated from time to time in Elutia's other filings with the SEC, including

Elutia's Quarterly Reports on Form 10-Q, accessible on the SEC's website at www.sec.gov and the Investor Relations page of

Elutia's website at https://investors.elutia.com. Because forward-looking statements are inherently subject to risks and uncertainties,

you should not rely on these forward-looking statements as predictions of future events. Any forward-looking statement made by Elutia

in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required

by applicable law, Elutia expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral,

that may be made from time to time, whether as a result of new information, future developments or otherwise.