Xtant Medical Announces OrbiMed Financing and Engagement of Aurora Management Partners

Xtant Medical Announces OrbiMed Financing

and Engagement of Aurora Management Partners

May 12, 2017 (GLOBE NEWSWIRE) -- Xtant Medical Holdings, Inc. (NYSE MKT:XTNT), a leader in the development of regenerative

medicine products and medical devices, today announced it has entered into an amendment to its senior credit facility with affiliates

of OrbiMed Advisors ("OrbiMed") for a financing of up to $15 million with the proceeds being used to pay off its outstanding

balance of approximately $9 million under its accounts receivable credit facility with Silicon Valley Bank ("SVB")

with the remainder for general working capital purposes. Additionally, OrbiMed has deferred the interest originally due under

the senior credit facility January 2, 2017 and March 31, 2017 to June 30, 2017.

Xtant Medical also announced it has entered into an agreement on May 8, 2017 with Aurora Management Partners

Inc. to engage David Baker and Wayne Tanner as restructuring officers to assist with day-to-day operations of the company and implementation

of an operating business plan. The restructuring officers will report to the special restructuring committee of Xtant Medical's

About Xtant Medical Holdings, Inc.

Xtant Medical Holdings, Inc. (NYSE MKT: XTNT)

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 Statements

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

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 to comply with

covenants in the Company's senior credit facility and to make deferred interest payments; the ability to maintain sufficient

liquidity to fund operations; the ability to remain listed on the NYSE MKT; the ability to obtain financing on reasonable terms;

the ability to increase revenue; the ability to continue as a going concern; the ability to maintain sufficient liquidity to fund

operations; the ability to achieve expected results; the ability to remain competitive; government regulations; the ability to

innovate and develop new products; the ability to obtain donor cadavers for products; the ability to engage and retain qualified

technical personnel and members of the Company's management team; the availability of Company facilities; government and

third-party coverage and reimbursement for Company products; the ability to obtain regulatory approvals; the ability to successfully

integrate recent and future business combinations or acquisitions; the ability to use net operating loss carry-forwards to offset

future taxable income; the ability to deduct all or a portion of the interest payments on the notes for U.S. federal income tax

purposes; the ability to service Company debt; product liability claims and other litigation to which we may be subjected; product

recalls and defects; timing and results of clinical studies; the ability to obtain and protect Company intellectual property and

proprietary rights; infringement and ownership of intellectual property; the ability to remain accredited with the American Association

of Tissue Banks; influence by Company management; the ability to pay dividends; and the ability to issue preferred stock; and other

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." You should carefully consider the trends,

risks and uncertainties described in this document, the Form 10-K and other reports filed with or furnished to the SEC before making

any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues,

our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities

could decline, and you could lose all or part of your investment. 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. All forward-looking statements attributable to us or persons acting on our

behalf are expressly qualified in their entirety by this cautionary statement.