Xtant Medical Pre-Announces Second Quarter 2016 Revenue and EBITDA Second Quarter 2016 Revenue in the range of $21.45 million to $21.65 million Core recurring revenue to increase 5.6% to 6.6% over the same period last ye

Xtant Medical Pre-Announces

Second Quarter 2016 Revenue and EBITDA

BELGRADE, Mont., July 20, 2016 (GLOBE NEWSWIRE)

-- Xtant Medical Holdings, Inc. (NYSE:XTNT), a leader in the development of regenerative medicine products and medical devices,

has preannounced that its second quarter 2016 revenue is expected to be in the range of $21.45 million to $21.65 million. Core

recurring revenue grew 5.6% to 6.6% year over year and 2.0% to 3.0% sequentially, in comparison to pro forma revenue for the second

EBITDA for this period is anticipated to be a gain

of $300,000 to $400,000, in comparison to a loss of $144,749 for the first quarter of this year. The Company defines earnings

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

amortization, impairment charges, non-recurring expenses and non-cash stock-based compensation.

On July 31, 2015, Bacterin International Holdings,

Inc. acquired all of the issued and outstanding stock of X- Spine Systems, Inc. and the combined company was renamed Xtant Medical

Holdings, Inc. Except for the financial results for the three months ended June 30, 2016, the results presented are on a pro forma

basis as if the two companies were combined for the periods shown. Certain pro forma adjustments have been made to reflect the

impact of the purchase transaction, primarily consisting of amortization of intangible assets with determinable lives and interest

expense on long-term debt. In addition, certain historical expenses, such as warrant expense and interest expense associated with

debt that was immediately repaid, were eliminated from these pro forma results. The pro forma information does not necessarily

reflect the actual results of operations had the acquisition been consummated at the beginning of the fiscal reporting period indicated

nor is it indicative of future operating results. The pro forma information does not include any adjustment for potential revenue

enhancements, cost synergies or other operating efficiencies that could result from the acquisition.

Additional information regarding the business

combination and its impact on the Company's financial position will be set forth in the Company's Form 10-Q for the quarter ended

June 30, 2016, which will be filed with the Securities and Exchange Commission on or about August 10, 2016 and will include the

Company's unaudited consolidated financial statements as of and for the quarters ended June 30, 2016 and June 30, 2015.

About Xtant Medical Holdings

Xtant Medical develops, manufactures and markets

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

serve the specialized needs of 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, 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.

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

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: our ability to integrate the acquisition of X-spine Systems, Inc. and any other business combinations

or acquisitions successfully; our ability to remain listed on the NYSE MKT; our ability to obtain financing on reasonable terms;

our ability to increase revenue; our ability to comply with the covenants in our credit facility; our ability to maintain sufficient

liquidity to fund our operations; the ability of our sales force to achieve expected results; our ability to remain competitive;

government regulations; our ability to innovate and develop new products; our ability to obtain donor cadavers for our products;

our ability to engage and retain qualified technical personnel and members of our management team; the availability of our facilities;

government and third- party coverage and reimbursement for our products; our ability to obtain regulatory approvals; our ability

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

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

income tax purposes; our ability to service our debt; product liability claims and other litigation to which we may be subjected;

product recalls and defects; timing and results of clinical studies; our ability to obtain and protect our intellectual property

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

Association of Tissue Banks; influence by our management; our ability to pay dividends; our ability to issue preferred stock; and

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

our securities could

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

are expressly qualified