Elutia Delivers Robust Growth on the Strength

Elutia Delivers Robust Growth on the Strength

of EluPro Market Adoption

EluPro Q2 revenue up 49% sequentially;

Elutia advances next-generation drug-eluting biomatrix for breast reconstruction

Conference call today at 5:00 p.m. ET / 2:00

GAITHERSBURG, Md., August 14, 2025 - Elutia

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

a business update and financial results for the second quarter of 2025. Since full launch in January 2025, EluPro has rapidly established

itself as the preferred antibiotic bioenvelope choice in cardiac implantable electronic device procedures, delivering robust revenue growth

and expanding access through national group purchasing organization (GPO) contracts, value analysis committee (VAC) approvals, and a strategic

distribution partnership with Boston Scientific. The Company also advanced its next-generation drug-eluting biomatrix pipeline, featuring

the NXT-41 platform for breast reconstruction with initial product launch planned for the second half of 2026.

Business Highlights:

"EluPro's performance continues to

exceed expectations, and we now believe BioEnvelope sales will be approaching a $20 million annualized run rate by year-end," said

Dr. Randy Mills, CEO of Elutia. "Since its launch earlier this year, EluPro has expanded into more than 160 VAC-approved hospitals,

with our commercial team rapidly growing its nationwide footprint. On the business development front, we are evaluating multiple transactions

and expect to share more soon. With our first drug-eluting biologic proving to be a commercial success, we are rapidly advancing our NXT-41

platform, our next-generation antibiotic biomatrix for breast reconstruction. With FDA clearance of the base matrix expected in 2H26 and

the drug-eluting version in 1H27, we are targeting a $1.5 billion market where one in three patients faces serious complications, and

where NXT-41x can set a new standard of care so patients can thrive without compromise."

Second Quarter 2025 Financial Results

For the three-month period ended June 30, 2025,

as compared to the same period of 2024:

Elutia will host a conference call today at 5:00

p.m. Eastern Time / 2:00 p.m. Pacific Time to discuss its second quarter 2025 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: 13754773

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 stock-based compensation,

FiberCel and VBM litigation costs, loss or gain on revaluation of warrant liability, warrant issuance expenses and loss or 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 the market reception of EluPro, including the timing and

anticipated success thereof, expectations regarding the Company's next-generation drug-eluting biomatrix pipeline, including anticipated

FDA clearance and the timing and anticipated success thereof, the size of the breast reduction market and the potential of the Company's

next-generation drug-eluting biomatrix pipeline to compete in that market, and any statements regarding future liability with respect

to the FiberCel litigation. 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 continue as a going concern; our ability to successfully commercialize,

market and sell our EluPro product; our ability to obtain regulatory approval or other marketing authorizations by the FDA and comparable

foreign authorities for our products and product candidates, including our next-generation drug-eluting biomatrix pipeline; our ability

to raise capital in the amounts and at the times needed, and on acceptable terms; our ability to manage our substantial indebtedness and

other obligations, such as our revenue interest obligation to Ligand Pharmaceuticals, including our ability to negotiate waivers or similar

accommodations as needed; 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, 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.

CONSOLIDATED BALANCE SHEET DATA

(Unaudited, in thousands)