Michael Senken Phone: (678) 384-6720 MIMEDX ANNOUNCES 2012

PRESS RELEASE Contact: Michael Senken

Phone: (678) 384-6720

MIMEDX ANNOUNCES 2012 RESULTS

KENNESAW, Georgia, March 7, 2013 (PR Newswire) MiMedx Group, Inc. (OTCBB: MDXG), an integrated developer, manufacturer and marketer of patent protected regenerative biomaterials

and bioimplants processed from human amniotic membrane, announced today its results for the year ended December 31, 2012.

of 2012 Results include:

Full Year and Fourth Quarter 2012 Results

The Company recorded record revenue for the year

ended December 31, 2012, with revenue of $27.1 million, more than three times 2011 full year revenue of $7.8 million. Earnings before interest, taxes, depreciation, amortization, impairment of intangibles, earn-out liability and share based

compensation (Adjusted EBITDA*) for the year ended December 31, 2012, were $2.4 million, a $8.7 million improvement as compared to the Adjusted EBITDA loss of $6.3 million for the year ended December 31, 2011.

The fourth quarter of 2012 marked the 8th consecutive quarter in which the Company reported improved gross margins. The Company s 2012 gross margins

of 81% are nearly a forty-two percentage point improvement over full year 2011 gross margins of 57%.

The Company recorded record revenue for

the quarter ended December 31, 2012, with revenue of $10.5 million, an increase of 299% or $7.9 million over fourth quarter of 2011 revenue of $2.6 million, and a 32% increase over the third quarter of 2012. Adjusted EBITDA* for the quarter

ended December 31, 2012, were $411,000, a $2.1 million improvement as compared to the Adjusted EBITDA loss of $1.64 million for the quarter ended December 31, 2011.

Management Commentary on 2012 Results

Petit, Chairman and CEO, stated, 2012 was an excellent year by all measurements. We increased revenues quarter-over-quarter, produced revenue growth of over three times the previous year, improved our gross profit margins by over 40 percentage

points, more than tripled the number of employees in key areas of the Company, and significantly improved the management quality and depth of our organization, particularly in the sales and management functions. Most importantly, we did this while

increasing our positive Adjusted EBITDA. The largest portion of our 2012 revenue growth was primarily attributed to our

EpiFix wound care allograft gaining physician acceptance in numerous Veterans Health Administration

( VA ) Hospitals. We made a strategic decision to add a direct sales force to focus on these government and military accounts since they are not dependent on third party reimbursement for our EpiFix tissue grafts. This has proven to be an especially beneficial strategy for the Company that should continue to

produce quarter-over-quarter sales growth. Late in the second quarter, we added a national sales director to head up the government sector of our sales force, and we began adding sales executives to that team in early July. The government-focused

team today consists of 27 sales executives. Also in the second quarter, we began expanding our direct sales teams focused on the commercial wound care market. That sales team consists today of 15 sales executives. Managing our surgical and sports

medicine distributors and sales agents is a group of four sales executives. This group brings our total sales force to 46 people.

Petit continued, Physicians quickly understand the healing qualities of our

amniotic membrane tissue allografts and are requesting the Company to provide them with clinical studies on various uses for our tissue. As a result, we have begun numerous prospective Randomized Controlled Trials (RCTs) and retrospective clinical

studies to provide clinical and cost performance data. As the leader in amniotic membrane tissue processing, we expect to have numerous opportunities to capture additional market presence based on the anticipated results from these studies. In

addition, we are rapidly conducting broader clinical evaluations of our AmnioFix allografts used for surgical

procedures and our micronized version of AmnioFix used for soft tissue injections. To meet these market

opportunities, we are continuing to increase the staff in our clinical research area to complete these studies on an aggressive timetable.

Bill Taylor, President and COO, commented, The results we expect from our clinical studies will further validate the clinical and cost effectiveness of our EpiFix and AmnioFix allografts. With the publication of these studies, we expect to see reimbursement coverage broaden among commercial health insurance plans and Medicare

intermediaries. The various Medicare intermediaries generally do not reimburse products in this category without additional clinical data to support their efficacy; however, based on the impressive results for the studies to date, we have received

positive notification from five of the nine intermediaries.

Last month, the Company announced that the U.S. Patent

and Trademark Office issued four new patents to MiMedx related to its placental-based allografts, bringing the Company s total patent coverage to five U.S. patents. We expect at least one more placental- based patent to be issued over the

next two months. We currently have a total of 24 pending patent applications relating to our proprietary

AmnioFix and EpiFix technologies and our placental tissue allografts. Our strategy has been to patent the key elements of our Purion Process, as well as the resulting

EpiFix and AmnioFix graft configurations. In addition, we are developing several patent applications around our base patents to build a barrier around our key intellectual property, and

make it much more difficult for anyone to replicate our allografts, stated Taylor.

During the year, the Company initiated a strategic

focus to expand and further develop its nation-wide placenta recovery network. Today we recover placentas in 19 hospitals in five states. In addition, we are in negotiations with several new hospital systems for recovery contracts that will

give us preferred access to additional hospitals nationwide. We expect that our recovery network will support our donor requirements well into 2014 and beyond. We will continue to broaden the outreach of our donor network in order to meet the

growing demand for our amniotic membrane tissue allografts, concluded Taylor.

Balance Sheet and Cash Flow

Cash on hand as of December 31, 2012, was $6.75 million, an increase of $2.64 million, as compared to $4.11 million, as of December 31, 2011.

Stockholders equity as of December 31, 2012, was $20.0 million, a 68% increase in stockholder s equity of $11.90 million as of December 31, 2011.

During the year, the Company raised over $7.0 million from the exercise of warrants and options. Cash flow from operating activities was a negative $3.4 million, and was primarily influenced by increases

in working capital to fuel the Company s sales growth. During the year, the Company invested $583,000 in capital equipment to continue its ramp-up of tissue processing activities to meet the market demand for its grafts.

Reported total current assets were $18 million and current liabilities were $5.1 million resulting in a

current ratio of 3.57 as compared to 3.0 at the end of 2011 when adjusted for amounts payable in stock. The earn-out liability related to the acquisition of Surgical Biologics was $5.8M as of December 31, 2012, which will be paid in MiMedx

common stock in the first quarter of 2013. Also, on the balance sheet at year end is the senior secured convertible promissory note which was converted to stock during the first quarter of 2013. During the year, the Company repaid the convertible

debt related to the Surgical Biologics acquisition.

During the year, Contingent Warrants for the purchase of over three million shares of

common stock with an exercise price of $.01 were voided per the terms of the 2012 Contingent Warrant agreement related to the trading price of the Company s Common Stock.

The Company recorded a Net Loss of $7.7 million, or

$0.09 per diluted common share, for the year ended December 31, 2012, a $2.5 million improvement as compared to the Net Loss of $10.2 million, or $0.14 per diluted common share, recorded for the year ended December 31, 2011. Included in

the 2012 Net Loss was a fair value adjustment of the earn-out liability of $1.6 million and a $1.8 million impairment of intangible assets related to our HydroFix platform. Selling, general and administrative expenses increased due to the decision to build out the Company s direct sales force for government accounts, as

well as to add key management and infrastructure related resources to support the Company s growth. Also included in the reported Net Loss for 2012 is non-cash related financing expense associated with the debt discount of $1.5 million for the

full year of 2012 related to the Company s convertible notes. Additionally, other recurring non-cash items of $2.5 million in share-based compensation expense, $1.4 million in amortization expense, and $465,000 related to depreciation expense

are included in the 2012 Net Loss from Operations.

The Company recorded a Net Loss of $1.6 million, or $0.02 per diluted common share, for

the quarter ended December 31, 2012, a $1.0 million improvement as compared to the Net Loss from Operations of $2.6 million, or $0.03 per diluted common share, recorded for the quarter ended December 31, 2011. Included in the Net Loss is a

charge of $247,000 related to the Surgical Biologics acquisition earn out due to higher than expected tissue revenue. The Net Loss also includes approximately $1.6 million in non-cash related expenses including $780,000 in share-based compensation

expense, $492,000 in non-cash refinancing expense tied to debt discounts, $263,000 in amortization of intangibles, and $111,000 in depreciation expense.

Use of non-GAAP financial measures

Management has disclosed adjusted financial

measurements in this press announcement that present financial information that is not in accordance with generally accepted accounting principles (GAAP). These measurements are not a substitute for GAAP measurements, although Company management

uses these measurements as aids in monitoring the Company s on-going financial performance from quarter-to-quarter and year-to-year on a regular basis, and for benchmarking against other medical technology companies. Adjusted EBITDA* is

earnings before interest, taxes, depreciation, amortization, share-based compensation, non-cash impairment and earn out liability charges. For a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure, see

accompanying table to this release. Adjusted financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider adjusted

measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.

The Company breaks down its revenues between three primary regenerative medicine specialties, Wound Care, Surgical & Sports Medicine, and Other, and reports

its revenue in these categories. Revenue for the Company s EpiFix grafts comprises the Wound Care

category. Its Surgical & Sports Medicine specialty is comprised of the AmnioFix product line which

includes both membrane and injectable configurations for its AmnioFix grafts. The Other category of

the MiMedx regenerative medicine specialties includes the Company s tissue revenue from its ophthalmic and dental applications and products from its HydroFix technology. The third quarter of 2012 marked the first quarter in which Wound Care revenue exceeded Surgical & Sports Medicine revenue. In the fourth

quarter, 49% of MiMedx sales volume was for Wound Care, 44% for Surgical& Sports Medicine and 7% for Other. On a year to date basis, Wound Care represents 42%, Surgical & Sports Medicine represents 48%, and Other

represents 10% of total MiMedx revenue.

The Company also reported its revenue goals for 2013. The Company s revenue goal for 2013 is to approximately double its 2012 revenue with 2013 revenue being in the range of $50 million to $60

The Company expects the growth in EpiFix allografts for use in wound care to grow significantly during 2013. This will be primarily related to sales in the states where the five Medicare Intermediaries have

recently determined to cover the Q4131 code for EpiFix and the expected coverage during the first half of the

year by the remaining intermediaries. The VA and government business should also continue to increase due to some additional sales positions being filled and broader use of the EpiFix and AmnioFix products in the

VA hospitals. However, the VA sales force has just recently received training on the surgical uses of AmnioFix

so no significant revenues from AmnioFix should be expected in the VAs until the second half of the year and

beyond. Additionally, the Company hired ten new sales executives for the commercial wound care sales organization just prior to the National Sales Meeting in mid-February, where they received their initial sales training. However, it is not expected

that this group will develop significant EpiFix revenues until well into the second quarter. Thus, the growth

in revenue in the first quarter is expected to be the smallest of the three quarters in 2013. Based on management s best estimates, the quarterly revenues will be in the following ranges:

Management expects that the Company will be able to continue growing revenue quarter- over-quarter in spite of some

degree of cyclicality in the market. However, the revenue growth quarter-over-quarter will vary significantly depending on the rate at which new sales executives are added particularly to our commercial wound care sales organization. As previously

stated, the timing of the additions will be determined by when Medicare Intermediary coverage is received in each region.

MiMedx management will host a live broadcast of its year end 2012 results conference call on Thursday, March 7, 2013, beginning at

10:30 a.m. eastern time. A listen-only simulcast of the MiMedx Group conference call will be available online at the Company s website at www.mimedx.com or at www.earnings.com. A 30-day online replay will be available

approximately one hour following the conclusion of the live broadcast. The replay can also be found on the Company s website at www.mimedx.com or at www.earnings.com.

MiMedx is an integrated developer, manufacturer and marketer of

patent protected regenerative biomaterial products and bioimplants processed from human amniotic membrane. Innovations in Regenerative Biomaterials is the framework behind our mission to give physicians

products and tissues to help the body heal itself. Our biomaterial platform technologies include the device technologies

HydroFix and CollaFix , and our tissue technologies, AmnioFix and EpiFix . Our tissue technologies are processed from human amniotic membrane that is derived from the donated placentas. Through our donor program, mothers delivering

full-term Caesarean section births can elect in advance of delivery to donate the placenta in lieu of having it discarded as medical waste. We process the human amniotic membrane utilizing our proprietary Purion Process, to produce a safe, effective and minimally manipulated implant for homologous use. MiMedx is the leading supplier of amniotic tissue, having supplied over 130,000 allografts to date to distributors and OEMs

for application in the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental sectors of healthcare.