Bacterin Record Announces First Quarter 2015 Results Company Continues to See Record Revenue Growth, Gross Profit Increases and Improved Gross Margins First Quarter Highlights: Total revenue increased 6.6% to $9.5 millio

Bacterin Record Announces First Quarter

Company Continues to See Record

Revenue Growth, Gross Profit Increases and Improved Gross Margins

First Quarter Highlights:

BELGRADE, Mont., May 5, 2015 (GLOBE NEWSWIRE) - Bacterin

International Holdings, Inc. (OTCQX:BONE), a leader in the development of allograft materials, today reported financial results

for the first quarter ended March 31, 2015. The Company reported first quarter revenues of approximately $9.5 million and a net

loss for the quarter of approximately $4.2 million, or ($0.62) per common share.

First quarter 2015 revenue was approximately $9.5 million, an

increase of 6.6% compared to approximately $8.9 million for the same period during 2014. Sequentially, first quarter 2015 revenue

increased 4.6% over fourth quarter 2014 revenue of $9.1 million.

The reported first quarter 2015 revenue represents a new record

and the sixth consecutive quarter of increased year-over-year revenue growth since Dan Goldberger joined Bacterin as Chief Executive

Officer in August 2013.

"The company's revenue growth story continues to materialize

according to our strategic plan to improve the sales function," said Goldberger. "Our first quarter 2015 revenue growth

is up 4.6% over last quarter and our year-over-year revenue growth is up 6.6% over first quarter 2014. We expect to see this trend

continue throughout 2015."

Gross profit for the first quarter of 2015 was $6.0 million

or 63.5% of revenues, compared to $5.5 million or 61.7% of revenues for the first quarter of 2014. The higher gross margins reflect

improvements in sales mix and operational improvements.Gross profit and gross margins continue to track above management's previously

stated 2015 gross margin range of between 61.0% and 63.0%.

Sales and Marketing Expenses

First quarter 2015 sales and marketing expenses increased to

$4.7 million, as compared to $4.1 million during the same period in 2014. For the quarter, sales and marketing as a percentage

of revenues increased to 49.6%, compared to 45.5% in the first quarter of 2014 due to increases in sales and marketing headcount

between the two periods. Sequentially, sales and marketing expense decreased from 49.8% of revenues in the fourth quarter of 2014

to 49.6% of revenues in the first quarter of 2015.

General and Administrative Expenses

In the first quarter, general and administrative expenses increased

slightly to $2.4 million as compared to $2.3 million reported for the same period last year. As a percentage of revenues, general

and administrative expenses declined from 25.7% of revenue in the fourth quarter of 2014 to 25.5% in the first quarter of 2015.

Research and Development Expenses

First quarter 2015 research and development expense was $434,000,

an increase of $179,000 over the first quarter of 2014, as the company continues to invest in product line extensions and clinical

studies to support its products. On a sequential basis, research and development expenses decreased $54,000 from the fourth quarter

of 2014 figure of $488,000.

Loss from Operations

The first quarter 2015 loss from operations was approximately

$1.7 million, compared to approximately $1.2 million in the first quarter of 2014. The increased loss primarily reflect the Company's

ongoing execution of its strategy to increase and enhance field sales assets to drive future revenue growth as well as the Company's

expanded product development initiatives.

The reported first quarter 2015 net loss of $4.2 million is

essentially flat when compared to $4.1 million for the same period during 2014.

The Company defines earnings before interest, taxes, depreciation

and amortization ("EBITDA") as net income/loss from operations before depreciation, amortization, impairment charges

and non-cash stock-based compensation. EBITDA for the first quarter of 2015 was a loss of $1.3 million compared to a loss of $0.7

million for the same period during 2014 and $1.1 million for the fourth quarter of 2014. The company incurred approximately $302,000

of expenses in the first quarter that will be eliminated over the second half of 2015. Excluding this figure, the EBITDA loss for

the first quarter of 2015 would have been approximately $966,000.

As of March 31, 2015, cash, cash equivalents and net accounts

receivable were $8.4 million. On March 16, 2015, the Company entered into a common stock purchase agreement with Aspire Capital

Fund, LLC, as amended and restated on April 17, 2015, to provide up to $10 million of equity capital at the Company's option. Pursuant

to the terms of the purchase agreement, Aspire Capital completed an initial purchase of $750,000 of our common stock at a purchase

price of $3.62 per share, the closing sale price on March 13, 2015 leaving approximately $9.25 million available to the Company.

The Company also issued 154,189 shares of common stock to Aspire Capital as a commitment fee. Going forward, we have the right

to require Aspire Capital to purchase additional shares of our common stock under the terms and subject to the conditions set forth

in the purchase agreement. Bacterin believes the purchase agreement with Aspire Capital provides flexibility in obtaining working

capital under terms which are less dilutive to common shareholders compared to other available options at this time.

Bacterin Reaffirms 2015 Guidance

For full year 2015, the Company reaffirms its revenue guidance

of approximately $40 million to $42 million, which compares to $35.3 million reported for 2014.

Conference Call Details

Conference date: May 6, 2015, 10:00 AM ET

Conference dial-in: 877-269-7756

International dial-in: 201-689-7817

Conference Call Name: Bacterin's First Quarter 2015 Results

Webcast Registration: Click Here

Following the live call, a replay will be available on the Company's

website, www.bacterin.com, under "Investor Info."

About Bacterin International Holdings

Bacterin International Holdings, Inc. (OTCQX:BONE) develops,

manufactures and markets biologics 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.

For further information, please visit www.bacterin.com.

Important Cautions Regarding Forward-looking Statements

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 ability of the

Company's sales force to achieve expected results, 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; the Company's ability to obtain shareholder approval of financing transactions; 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 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

BACTERIN INTERNATIONAL HOLDINGS, INC.

Consolidated Statements of Operations