Xtant Medical Announces Second Quarter 2018 Financial Results BELGRADE, MT

Medical Announces Second Quarter 2018 Financial Results

MT, Aug 7, 2018 - Xtant Medical Holdings, Inc. (NYSE American: XTNT), a leader in the development of regenerative medicine

products and medical devices, today reported financial and operating results for the second quarter ended June 30, 2018.

of Second Quarter 2018 Financial Highlights and Recent Announcements:

reflecting on our performance through the first half of the year, I am very excited about our future as a Company," said

Carl O'Connell, Xtant Medical's chief executive officer. "We have made very positive strides and changes so

far in 2018, including the restructuring of our balance sheet with the recent debt conversion, improved gross margins, efficiencies

in consolidation of operations to Belgrade, MT and now importantly, expansion of our leadership team with the recent addition

of Kevin Brandt as chief commercial officer."

Quarter 2018 Financial Results

for the second quarter of 2018 was $18.7 million, down from $21.4 million compared to the same period of the prior year. The decrease

occurred in the Company's fixation product lines due principally to competitive factors and a strategic focus on reducing

unprofitable sales channel arrangements while improving gross margin and adjusted EBITDA.

This strategic decision, which was implemented in the beginning of the third quarter last year, has contributed positively to

many other areas of the business.

margin for the second quarter of 2018 was 66.6%, up from 63.2% for the same period in 2017. This improvement was due to the Company's

focus on profitable sales channel relationships with higher margins, and from the benefits of restructuring some several operational

areas of the organization for efficiencies and cost reduction.

expenses for the second quarter of 2018 were $14.7 million, 78.6% of net revenue, down $5.2 million compared to $19.9 million

in the quarter ended June 30, 2017, which was 92.9% of net revenue. The improvement occurred as the Company positions itself for

future long-term growth through execution of its channel strategy, moving on from select high-commission sales arrangements, cost

reduction and efficiency programs to streamline its operations, including consolidation of facilities, and lower restructuring

net loss from operations for the second quarter of 2018 was $5.0 million compared to a loss of $9.7 million for the same period

in the prior year, with a net loss per share of $0.38 compared to a net loss of $6.43 per share for the same quarter in the prior

Adjusted EBITDA for the second quarter of 2018 was approximately $0.8 million compared to a loss of $2.1 million for the same

period during 2017. The Company defines Adjusted EBITDA as net income/loss from operations before depreciation, amortization and

interest expense, and as further adjusted to add back in or exclude non-cash stock-based compensation, change in warrant derivative

liability, separation related expenses, Dayton transition costs and restructuring expenses. A calculation and reconciliation of

net loss to non-GAAP Adjusted EBITDA can be found in the attached financial tables.

of Kevin Brandt to Executive Management Team

Brandt recently joined Xtant as the chief commercial officer. He is responsible for executing the Company's sales and marketing

initiatives, and driving the commercial strategy of the organization. Mr. Brandt brings over 28 years of orthopedic experience

in the commercial space, most recently as the chief commercial officer of RTI Surgical, where he led all domestic direct lines

of business. Prior to joining RTI Surgical he spent 18 years at Stryker Corporation in various senior commercial leadership positions.

Approved the 2018 Equity Incentive Plan

Xtant Medical stockholders approved the Xtant Medical Holdings, Inc. 2018 Equity Incentive Plan (the "2018 Plan").

The approval occurred at the 2018 annual meeting of stockholders on August 1, 2018, upon recommendation from the Board of Directors.

2018 Plan permits the Board, or a committee thereof, to grant to eligible employees, non-employee directors and consultants of

the Company non-statutory and incentive stock options, restricted stock, restricted stock units and other stock-based awards.

The Board may select 2018 Plan participants and determine the nature and amounts of awards to be granted. Subject to adjustment

as provided in the 2018 Plan, the number of shares of Company common stock available for issuance under the 2018 Plan is 1,307,747

2018 Plan replaces the Amended and Restated Xtant Medical Equity Incentive Plan and will expire on July 31, 2028.

the first quarter ended March 31, 2018, the Company entered into a restructuring and exchange agreement with holders of Xtant's

then outstanding 6% convertible senior unsecured notes due 2021. Pursuant to that agreement, all outstanding convertible notes,

constituting $71.9 million in outstanding principal amount, plus accrued and unpaid interest, were converted into 10.6 million

shares of Xtant common stock. Most of the conversions occurred on February 14, 2018, after the receipt of stockholder approval

of aspects of the restructuring transaction and the effectiveness of a 1-for-12 reverse stock split, which occurred at the close

of business on February 13, 2018. On February 14, 2018, the Company issued 945,819 shares of common stock in a private placement

at a price per share of $7.20 for cash proceeds of $6.8 million.

Company will host a conference call to discuss the second quarter 2018 financial results and business developments on Wednesday,

August 8, 2018 at 9:00 AM EDT. Please refer to the information below for conference call dial-in information and webcast registration:

date: August 8, 2018, 9:00 AM ET

dial-in: 877-407-6184

dial-in: 201-389-0877

Call Name: Xtant Medical's Second Quarter 2018 Results Call

Registration: Click Here

the live call, a replay will be available on the Company's website, www.xtantmedical.com,

under "Investor Info."

Medical develops, manufactures and markets regenerative medicine products and medical devices for domestic and international markets.

Xtant Medical 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 Medical can leverage its resources to successfully compete in global neurological

and orthopedic surgery markets. For further information, please visit www.xtantmedical.com.

supplement the Company's consolidated financial statements prepared in accordance with U.S. generally accepted accounting

principles (GAAP), the Company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA. Reconciliations

of the non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be

found in tables later in this release. The Company's management believes that the presentation of these measures provides useful

information to investors. These measures may assist investors in evaluating the company's operations, period over period. Management

uses the non-GAAP measures in this release internally for evaluation of the performance of the business, including the allocation

of resources. Investors should consider non-GAAP financial measures only as a supplement to, not as a substitute for or as superior

to, measures of financial performance prepared in accordance with GAAP.

Cautions Regarding Forward-looking Statements

press release contains certain disclosures that may be deemed forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. 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,'' expects,''

anticipates,'' intends,'' plans,'' believes,''

estimates,'' strategy,'' "future," will,''

"can" or similar expressions or the negative thereof. Statements of historical fact also may be deemed to be forward-looking

statements. The Company cautions 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 increase revenue; the ability

to achieve expected results; the ability to remain competitive; the ability to innovate and develop new products; the ability

to engage and retain qualified personnel; government and third-party coverage and reimbursement for Company products; the ability

to obtain and maintain regulatory approvals; government regulations; product liability claims and other litigation to which we

may be subject; product recalls and defects; timing and results of clinical studies; the ability to obtain and protect Company

intellectual property and proprietary rights and operate without infringing the rights of others; the ability to service Company

debt and comply with debt covenants; the ability to raise additional financing and other factors. Additional risk factors are

listed in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange

Commission (SEC) on April 2, 2018 and subsequent SEC filings by the Company, including without limitation its Quarterly Reports

on Form 10-Q for the quarters ended March 31, 2018 and June 30, 2018. Investors are encouraged to read the Company's filings

with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. 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.

MEDICAL HOLDINGS, INC.

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MEDICAL HOLDINGS, INC.