Bacterin Awarded Grant from the Montana Board of Research and Commercialization Technology BELGRADE, MT--(BUSINESS WIRE)

Bacterin Awarded Grant from the Montana

Board of Research and Commercialization Technology

BELGRADE, MT--(BUSINESS WIRE)- October 27, 2014 -- Bacterin

International Holdings, Inc. (NYSE MKT: BONE), a leader in the development of bone graft material and coatings for medical applications,

has been awarded a grant from the Montana Board of Research and Commercialization Technology (MBRCT)

in the amount of $192,484 for the development and commercialization of a novel regenerative medicine technology.

The MBRCT states that, "The

purpose of the program is to encourage economic development through investment in research projects that have a clear path to commercialization."

Bacterin's research, supported in part by the yearlong grant from MBRCT, will address a long-standing clinical challenge

which aims to provide life-enhancing care to wounded military personnel and civilians. Biologic products for the treatment of soft

tissue and wound repair offer enhanced clinical outcomes which benefit patients directly in the form of more rapid and complete

tissue regeneration. The technology addresses an estimated $683M annual market, constituting 22% of the addressable market for

regenerative medicine.

Bacterin's CEO Dan Goldberger stated, "We are extremely

grateful for the financial support from the state of Montana. This funding will support our development initiatives within the

field of regenerative medicine"

Mark Schallenberger, MS, is the Principal Investigator for the

research project, with Gregory Juda, PhD, CTBS; Todd Meyer, PhD; and Helena Lovick, PhD, CTBS serving as contributing investigators.

The award from MBRCT will be used to finalize process development and to fund pre-clinical studies to facilitate the commercialization

About Bacterin International Holdings

Bacterin International Holdings, Inc. (NYSE

MKT: BONE) develops, manufactures and markets biologic products to domestic and international markets. These products are used

in a variety of applications including enhancing fusion in spine surgery, relief of back pain, promotion of bone growth in foot

and ankle surgery, promotion of cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.

Bacterin's Medical Device division

develops, employs, and licenses coatings for various medical device applications. For further information, please visit www.bacterin.com.

Important Cautions Regarding Forward-looking

This news release contains certain disclosures that may be deemed

forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to significant

risks and uncertainties. Forward-looking statements include statements that are predictive in nature, that depend upon or refer

to future events or conditions, or that include words such as "continue," "efforts," "expects," "anticipates,"

"intends," "plans," "believes," "estimates," "projects," "forecasts,"

"strategy," "will," "goal," "target," "prospects," "potential," "optimistic,"

"confident," "likely," "probable" or similar expressions or the negative thereof. Statements of historical

fact also may be deemed to be forward-looking statements. We caution that these statements by their nature involve risks and uncertainties,

and actual results may differ materially depending on a variety of important factors, including, among others: the Company's ability

to meet its existing and anticipated contractual obligations, including financial covenant and other obligations contained in the

Company's secured lending facility; the Company's ability to manage cash flow and achieve profitability; the Company's

ability to remain listed on the NYSE MKT; the Company's ability to develop, market, sell and distribute desirable applications,

products and services and to protect its intellectual property; the ability of the Company's sales force to achieve expected results;

the ability of the Company's customers to pay and the timeliness of such payments; the Company's ability to obtain financing as

and when needed; changes in consumer demands and preferences; the Company's ability to attract and retain management and employees

with appropriate skills and expertise; the Company's ability to successfully conclude government investigations; the impact

of changes in market, legal and regulatory conditions and in the applicable business environment, including actions of competitors;

and other factors. Additional risk factors are listed in the Company's Annual Report on Form 10-K and Quarterly Reports on Form

10-Q under the heading "Risk Factors." The Company undertakes no obligation to release publicly any revisions to any

forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated

events, except as required by law.