TTG Tutogen Medical,

Company Reports 3rd Consecutive Profitable Quarter ALACHUA, Fla., May 14 /PRNewswire-FirstCall/ -- Tutogen Medical, Inc. (AMEX:TTG), a leading manufacturer of sterile biological implant products made from human (allograft) and animal (xenograft) tissue, today announced financial results for the second quarter of fiscal year 2007 ended March 31, 2007. Highlights for the quarter include: * Total revenues increased 43% to $13.0 million compared to $9.1 million in the comparable quarter of fiscal year 2006; * U.S. revenues increased 57% compared to the second quarter of fiscal 2006; * International revenues increased 17% versus the comparable quarter; * Sales of dental products increased 44% versus last year's second quarter; * Sales of spine products increased to $1.3 million compared to $425,000 for the comparable quarter of 2006; * Net income for the second quarter of fiscal year 2007 was $930,000 or $0.05 per fully diluted share, compared to net income of $22,000 or $0.00 per fully diluted share, in the second quarter of fiscal year 2006. Revenues for the quarter ended March 31, 2007 of $13.0 million represented the highest quarterly revenue in the Company's history and a 43% increase from the $9.1 million recorded in the comparable quarter of the previous year. For the six month period ended March 31, 2007 the Company reported a 43% increase in revenues to $24.5 million versus $17.1 million in the first half of the previous fiscal year. U.S. revenues for the second quarter increased by 57% to $9.4 million compared to $6.0 million in the comparable quarter last year. The increase in U.S. revenues was fueled by the continuing increase in the demand for the Company's TUTOPLAST(R) bone products for dental applications sold by Zimmer Dental, and by increased demand for the Company's new machined graft spinal products. Spine revenues increased to $1.3 million compared to $425,000 during the second quarter of the previous fiscal year. Surgical Specialties revenues (primarily urology, ophthalmology, hernia, breast reconstruction and ENT) increased 50% to $1.8 million due to the new hernia and breast reconstruction products. International revenues for the quarter increased 17% to $3.7 million versus $3.1 million in the second quarter of fiscal year 2006. The increases are primarily due to increased bovine product sales, dental sales and service processing in Germany and increased sales efforts by several key distributors in various countries. Net income for the quarter was $930,000, or $0.05 per fully diluted share, compared to net income of $22,000 or $0.00 per fully diluted share in the comparable quarter of fiscal year 2006. The Company reported net income of $1.3 million, or $0.07 per fully diluted share for the first half of fiscal 2007 compared to a net loss of $59,000 or $0.00 for the first six months of fiscal year 2006. Gross margins for the quarter ended March 31, 2007 increased to 59.5% from 55.9% for the comparable period in the prior year. This margin improvement is a direct result of improved production efficiencies and volumes and introduction of new products with higher margins. Guy Mayer, President and Chief Executive Officer of Tutogen Medical, said, "The strong financials results of the quarter reflect our success in continuing to execute on our strategic business plan. We are particularly pleased with the overall quarterly revenue growth of 43%. Our dental products, machined-bone spine products and our surgical specialty products including hernia and breast reconstruction were the main growth drivers for this past quarter and are expected to continue fueling future growth." "From a strategic standpoint, we believe that many of our products have the potential to generate significant revenues through international distribution. In that regard, we recently announced that Coloplast will be the international distributor for urological products. We have great confidence that successful positioning of our products in new markets will have a positive impact on our financial results in future years." During April, 2007, the Company completed a $12 million private placement of common stock, for working capital and general corporate purposes. Mr. Mayer commented, "We are pleased to have successfully completed the private placement with quality institutional investors. The funds raised will support our strategic initiatives and ensure working capital necessary for our continued growth." Conference Call Tutogen Medical will conduct a conference call on Monday, May 14, 2007, beginning at 10:00 a.m. ET to review the results of the quarter. Interested parties can access the call by dialing (800) 218-4007 or (303) 262-2137 or by accessing the web cast at http://www.tutogen.com/investor.aspx. A replay of the call will be available at (800) 405-2236 or (303) 590-3000, conference ID number: 11089605 for 3 days following the call, and the web cast can be accessed at http://www.tutogen.com/investor.aspx for 30 days. About Tutogen Medical, Inc. Tutogen Medical, Inc. manufactures sterile biological implant products made from human (allograft) and animal (xenograft) tissue. Tutogen utilizes its Tutoplast Process(R) of tissue preservation and viral inactivation to manufacture and deliver sterile bio-implants used in spinal/trauma, urology, dental, ophthalmology, and general surgery procedures. The Company's Tutoplast(R) products are sold and distributed worldwide by Zimmer Spine and Zimmer Dental, subsidiaries of Zimmer Holdings, Inc., Davol Inc. subsidiary of C.R. Bard Inc., the Mentor Corporation (Mentor), Coloplast Corp., IOP, Inc. and through independent distributors internationally. For more information, visit the Company's Web site at http://www.tutogen.com/. Forward-Looking Statement Disclaimer: This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "expect," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. These statements include, but are not limited to, statements made by the Company's Chief Executive Officer concerning the Company's recent financial performance and trends of quarterly revenue increases, progress toward profitability, the potential for growth in sales and continued market acceptance of the Company's hernia repair, breast reconstruction and new spine products, potential growth in the Company's dental and international markets, and management's excitement about the Company's future opportunities. Forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth or implied by forward-looking statements. These and other risks are identified in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2006. All information in this press release is as of the date hereof, and the Company undertakes no duty to update this information unless required by law. Contacts: L. Robert Johnston, Jr. Lytham Partners, LLC Chief Financial Officer Joe Diaz Tutogen Medical, Inc. Joe Dorame 386-462-0402 Robert Blum 602-889-9700 CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) (In Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended Six Months Ended March 31 March 31 2007 2006 2007 2006 Revenue $13,017 $9,115 $24,480 $17,149 Gross profit 7,745 5,098 14,787 9,803 Operating expenses 6,372 5,236 12,703 10,184 Operating income (loss) 1,373 (138) 2,084 (381) Foreign exchange loss (24) (146) (62) (28) Other income (loss) 38 (7) 72 9 Interest (expense) income - net (370) 100 (644) 21 Income tax (expense) benefit (87) 213 (160) 320 Net income (loss) $930 $22 $1,290 $(59) Basic earnings (loss) per share $0.06 $0.00 $0.08 $(0.00) Diluted earnings (loss) per share $0.05 $0.00 $0.07 $(0.00) CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) (Unaudited) March 31 September 30 2007 2006 Current assets $27,558 $24,250 Fixed assets, net 14,071 12,940 Deferred income taxes and other assets 1,556 1,727 Total Assets $43,185 $38,917 Current liabilities $17,796 $16,035 Long-term debt 3,290 3,673 Deferred distribution fees and other noncurrent liabilities 3,101 3,988 Shareholders' equity 18,998 15,221 Total Liabilities and Shareholders' Equity $43,185 $38,917 DATASOURCE: Tutogen Medical, Inc. CONTACT: L. Robert Johnston, Jr., Chief Financial Officer of Tutogen Medical, Inc., +1-386-462-0402, ; or Joe Diaz, Joe Dorame, or Robert Blum, all of Lytham Partners, LLC, +1-602-889-9700, for Tutogen Medical, Inc. Web site: http://www.tutogen.com/ http://www.tutogen.com/investor.aspx

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