Xtant Medical Announces FDA Approval of OsteoSelect

Medical Announces FDA Approval of OsteoSelect PLUS

BELGRADE, Mont., Aug. 25, 2015 (GLOBE NEWSWIRE) -- Xtant Medical

Holdings, Inc. (OTCQX:BONE), a leader in the development of regenerative medicine products and medical devices, today announced

that its wholly owned subsidiary, Bacterin International, Inc., has received FDA 510(k) clearance of OsteoSelect PLUS Demineralized

Bone Matrix (DBM) Putty.

OsteoSelect PLUS is a next-generation DBM putty, comprised of

OsteoSelect Putty with the addition of demineralized cortical chips. Aligned with the Company's commitment to patient safety,

OsteoSelect PLUS will provide another Sterile grafting solution for customers. This new product will also eliminate the need to

mix bone chips and DBM putty intra-operatively, saving time and reducing graft variability.

"We are very pleased with the FDA's

decision to approve OsteoSelect PLUS for marketing and distribution" said Dr. Gregory Juda, Bacterin's Chief Scientific

Officer. "We developed this next generation bone graft material in response to surgeon demand using design input from surgeon

customers. Because of their involvement in the development process, we are confident that OsteoSelect PLUS will be successfully

received in the market and will serve to make our comprehensive product portfolio even stronger."

With this notice and clearance from the FDA, Xtant Medical is

prepared to launch OsteoSelect PLUS to customers in Q4 2015. The Company will work with its primary GPO and IDN customers to add

this product to current contracts, making it available immediately upon product launch. This is the first 510(k) approval for Bacterin

International since becoming a subsidiary of Xtant Medical, and will be the first of many planned product releases, as management

focuses on rounding out the combined product portfolio. This new product will help drive the Company's growth and provides

an opportunity for increased market share.

About Xtant Medical Holdings

Xtant Medical Holdings, Inc. (OTCQX:BONE) develops, manufactures

and markets class-leading regenerative medicine products and medical devices for domestic and international markets. Xtant products

serve the specialized needs of orthopedic and neurological surgeons, including orthobiologics for the promotion of bone healing,

implants and instrumentation for the treatment of spinal disease, tissue grafts for the treatment of orthopedic disorders, and

biologics to promote healing following cranial, and foot and ankle surgeries. With core competencies in both biologic and non-biologic

surgical technologies, Xtant can leverage its resources to successfully compete in global neurological and orthopedic surgery

markets. For further information, please visit www.xtantmedical.com.

Important Cautions Regarding Forward-looking

This press 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 successfully integrate the acquisition of X-spine; 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 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 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.