TTG Tutogen Medical,

Company Reports 4th Consecutive Profitable Quarter; Revenues Increase 42% overall; 55% in U.S. ALACHUA, Fla., Aug. 13 /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 third quarter of fiscal year 2007 ended June 30, 2007. Highlights for the quarter include: -- Total revenues increased 42% to $14.2 million compared to $10.0 million in the comparable quarter of fiscal year 2006; -- U.S. revenues increased 55% compared to the third quarter of fiscal 2006; -- International revenues increased 16% versus the comparable quarter; -- Sales of dental products in the U.S. increased 39% versus last year's third quarter; -- Sales of spine products increased to $1.1 million compared to $617,000 for the comparable quarter of 2006; up 84%. -- Net income for the third quarter of fiscal year 2007 was $5.9 million, or $0.30 per fully diluted share, compared to a net loss of $1.1 million or $(0.07) per fully diluted share, in the third quarter of fiscal year 2006. Net income for the third quarter of fiscal year 2007 includes a tax benefit related to the reversal of the U.S. operations valuation allowance of $5.0 million. Revenues for the quarter ended June 30, 2007 of $14.2 million represented the highest quarterly revenue in the Company's history and a 42% increase from the $10.0 million recorded in the comparable quarter of the previous year. For the nine month period ended June 30, 2007, the Company reported a 42% increase in revenues to $38.6 million versus $27.1 million in the first nine months of the previous fiscal year. U.S. revenues for the third quarter increased by 55% to $10.1 million compared to $6.5 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 and new hernia repair and breast reconstruction products. Sales of dental products increased 39% to $6.6 million compared to $4.7 million in last year's third quarter. Spine revenues increased to $1.1 million, or 84%, compared to $617,000 during the third quarter of the previous fiscal year. Surgical Specialties revenues (primarily urology, ophthalmology, hernia, breast reconstruction and ENT) increased 107% to $2.4 million from $1.1 million in the comparable quarter of fiscal 2006 due to the new hernia and breast reconstruction products. International revenues for the quarter increased 16% to $4.1 million versus $3.5 million in the third 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. Gross margins for the quarter ended June 30, 2007 increased to 59.5% from 48% 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. The Company's three and nine-month results include a $5.0 million reversal of a previously recorded valuation allowance related to our U.S. operations which reflects the continued strong growth and profitability of the U.S. operations. Net income for the three-month period ended June 30, 2007, totaled $5.9 million, or $0.32 and $0.30 basic and diluted earnings per share, respectively. Excluding the tax benefit of $5.0, net income for the three- month period ended June 30, 2007, totaled $954,000 or $0.05 basic and diluted earnings per share, respectively. Net loss for the three-month period ended June 30, 2006, totaled $1.1 million or $0.07 basic and diluted loss per share, respectively. Net income for the nine-month period ended June 30, 2007, totaled $7.2 million, or $0.42 and $0.38 basic and diluted earnings per share, respectively. Excluding the tax benefit of $5.0 million, net income for the nine-month period ended June 30, 2007, totaled $2.2 million or $0.13 and $0.12 basic and diluted earnings per share, respectively. Net loss for the nine- month period ended June 30, 2006, totaled $1.2 million, or $0.07 basic and diluted loss per share, respectively. Guy Mayer, President and Chief Executive Officer of Tutogen Medical, said, "We are pleased with the strong revenue and net income growth that was achieved during the quarter. All product categories and all geographic territories posted solid double digit increases. Our U.S. dental segment continued to perform at a very high level with a 39% sales increase. We are particularly pleased with the 84% increase in spine sales and the 107% increase in our surgical specialties sales. Our distribution partners in these businesses have been very successful in the early stages of developing these markets." "We continue to be focused on efficient and consistent execution in all aspects of our business," continued Mr. Mayer. "We have made significant progress in the past two years in realigning our company, our products, and our various distribution channels. We believe that international distribution of our products will increasingly have a greater impact on our financial performance in the years to come. There are many opportunities ahead and it is with great enthusiasm that we look forward to the future." Conference Call Tutogen Medical will conduct a conference call on Monday, August 13, 2007, beginning at 9:30 a.m. ET to review the results of the quarter. Interested parties can access the call by dialing (888) 408-9532 or (706) 679-5064 or by accessing the web cast at http://www.tutogen.com/Investor.aspx. A replay of the call will be available at (800) 642-1687 or (706) 645-9291, conference ID number: 7206734 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. CONDENSED CONSOLIDATED FINANCIAL SUMMARY (in thousands except per share data) (unaudited) Three Months Ended Nine Months Ended June 30 June 30 2007 2006 2007 2006 Revenue $ 14,163 $ 10,000 $ 38,643 $ 27,149 Cost of revenue 5,737 5,189 15,430 12,476 Gross profit 8,426 4,811 23,213 14,673 Operating Expenses General and administrative 2,013 2,273 6,315 5,629 Distribution and marketing 4,184 3,332 11,589 9,352 Research and development 566 452 1,562 1,319 Total Operating Expenses 6,763 6,057 19,466 16,300 Operating income (loss) 1,663 (1,246) 3,747 (1,627) Foreign exchange loss (21) (233) (83) (261) Interest income 121 12 193 42 Interest expense (372) (75) (1,016) (53) (272) (296) (906) (272) Income (loss) before taxes 1,391 (1,542) 2,841 (1,899) Income tax benefit (4,516) (413) (4,356) (711) Net income (loss) $ 5,907 $ (1,129) $ 7,197 $ (1,188) Average shares outstanding for basic earnings per share 18,517,927 16,058,724 17,201,897 15,993,936 Basic earnings (loss) per share $ 0.32 $ (0.07) $ 0.42 $ (0.07) Average shares outstanding for diluted earnings per share 19,950,357 16,058,724 18,730,575 15,993,936 Diluted earnings (loss) per share $ 0.30 $ (0.07) $ 0.38 $ (0.07) CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) (Unaudited) June 30 September 30 2007 2006 Current assets $41,198 $24,250 Fixed assets, net 14,015 12,940 Deferred income taxes and other assets 3,619 1,727 Total Assets $ 58,832 $ 38,917 Current liabilities $ 13,033 $ 16,035 Long-term debt 2,994 3,673 Deferred distribution fees and other noncurrent liabilities 2,887 3,988 Shareholders' equity 39,918 15,221 Total Liabilities and Shareholders' Equity $ 58,832 $ 38,917 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 DATASOURCE: Tutogen Medical, Inc. CONTACT: L. Robert Johnston, Jr., Chief Financial Officer of Tutogen Medical, Inc. , +1-386-462-0402, ; or Joe Diaz, or Joe Dorame, or Robert Blum, all of Lytham Partners, LLC, +1-602-889-9700 Web site: http://www.tutogen.com/

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