XTNT Announces Closing of Registered Direct Offering

XTNT Announces Closing of Registered

BELGRADE, Mont., Jan. 18, 2017 (GLOBE NEWSWIRE) -- Xtant

Medical Holdings, Inc. (NYSE MKT:XTNT), a leader in the development, manufacturing and marketing of orthopedic products for domestic

and international markets, today has announced the closing of a registered direct offering conducted without an underwriter or

placement agent (the "Offering"). The Offering closed on January 17, 2017 and was with certain holders of its convertible

promissory notes ("Indenture Notes") to purchase a total of 843,289 shares of its common stock. The common stock was

sold at a negotiated price of $0.5692 per share.

All of the proceeds of the Offering were applied to

set off interest owed by Xtant under certain of the Indenture Notes to the purchasers of the common stock. The Company was required

to make interest payments on January 15, 2017 (which were due on January 17, 2017, the immediately following business day), to the

holders of the Indenture Notes, aggregating $2,040,000, of which $480,000 were satisfied by the Offering. All expenses of

the Offering will be paid by the Company from cash on hand.

If you have questions about the Offering, please contact

Xtant Investor Relations by calling (877) 889-1972 or writing to investorrelations@cg.capital.

This press release shall not constitute an offer to

sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of common stock in any state or

other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under

the securities laws of any such state or other jurisdiction.

About Xtant Medical Holdings

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: 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 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." 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.

Xtant Medical Holdings, Inc.