Elutia Announces Second Quarter 2024 Results Launch Production of EluPro Underway, Commercial Team Expansion Continues, Financial Position Solidified

Second Quarter 2024 Results

Launch Production of EluPro

Underway, Commercial Team Expansion Continues, Financial Position Solidified

SILVER SPRING, Md., August 7, 2024 -

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

a business update and financial results for the second quarter ended June 30, 2024.

Business Highlights:

"With the FDA clearance of EluPro, we are

equipped with what we believe is a superior product, which is bringing us significant attention from a range of participants in the multi-billion-dollar

pacemaker and defibrillator market," said Dr. Randy Mills, Elutia's Chief Executive Officer. "Additionally, our

manufacturing and quality systems were evaluated by the FDA with no deficiencies noted, clearing the way for commercial production of

EluPro. Simultaneously, we have initiated the value analysis committee submission process, all in a coordinated effort to ensure this

revolutionary product reaches our surgeon partners, enabling them to provide the best care for their patients."

Dr. Mills continued, "With a robust

financial position, we are laser focused on the successful launch of EluPro and further expanding our commercial footprint. We are systematically

building our commercial teams for both EluPro and SimpliDerm and intensifying business development efforts to extend the reach of our

drug-eluting biomatrix technology into adjacent markets covered under the EluPro approval. I want to thank our incredible team, who did

a beautiful job executing on our plan to maximize the value of Elutia for all stakeholders."

Second Quarter 2024 Financial Results

For the three-month period ended June 30,

2024, as compared to the same period of 2023:

Elutia will host a conference call today at 4:30

p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss its second quarter 2024 financial results and performance.

The conference call can be accessed using the

following information:

U.S. Investors: 877-407-8029

International Investors: 201-689-8029

Conference ID: 13747696

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.

In addition to the Company's financial results

determined in accordance with U.S. GAAP, the Company provides non-GAAP measures that it determines to be useful in evaluating its operating

performance and liquidity. The Company presents in this press release the following non-GAAP financial measures: earnings before interest,

taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization

("adjusted EBITDA"), adjusted gross margin and adjusted gross profit. The Company defines EBITDA as GAAP net loss excluding

interest expense, income tax expense, depreciation and amortization, and the Company defines adjusted EBITDA as EBITDA excluding income

from discontinued operations, stock-based compensation, FiberCel litigation costs, loss on extinguishment of debt, net of gain on debt

forgiveness, loss on revaluation of warranty liability and gain on revaluation of revenue interest obligation. The Company defines adjusted

gross profit and adjusted gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding amortization of acquired intangible

assets. The amortization of these intangible assets will recur in future periods until such intangible assets have been fully amortized.

Management believes that presentation of non-GAAP financial measures provides useful supplemental information to investors and facilitates

the analysis of the Company's core operating results and comparison of operating results across reporting periods. The Company uses this

non-GAAP financial information to establish budgets, manage the Company's business, and set incentive and compensation arrangements.

Non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability

with past financial performance. However, non-GAAP financial information is presented for supplemental information purposes only, has

limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in

accordance with U.S. GAAP. For a reconciliation of these non-GAAP measures to GAAP, see below "Non-GAAP Reconciliations of EBITDA

and Adjusted EBITDA" and "Non-GAAP Reconciliations of Adjusted Gross Profit and Adjusted Gross Margin."

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 our future interactions with the U.S. Food and Drug Administration

("FDA"); preparations for the launch of EluPro, including the timing and anticipated success thereof; the size of the pacemaker

and implantable defibrillator protection market and the potential of EluPro to compete in that market; and the potential for applying

our drug-eluting biomatrix technology into adjacent markets. 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 obtain regulatory

approval or other marketing authorizations by the FDA and comparable foreign authorities for our products and product candidates; our

ability to continue as a going concern; 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 achieve or sustain profitability;

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; the

continued and future acceptance of our products by the medical community; 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 could adversely affect our sales and profitability;

and 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, 2023, 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.