DALLAS, May 17 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC:CRDT) (BULLETIN BOARD: CRDT) , a leading U.S. provider of healthcare staffing services, today announced financial results for the three months ended March 31, 2006. First Quarter Results The Company reported first quarter 2006 revenue of $8.9 million, a 75.4% increase compared to revenue of $5.1 million for first quarter 2005. The Company also reported a net loss attributable to common stockholders of $1.4 million for the first quarter 2006, or $(0.42) per basic and diluted share, as compared to a net loss attributable to common stockholders of $3.4 million, or $(2.50) per basic and diluted share, for the first quarter 2005. "The Company continues to make excellent progress towards our objective of consolidating the industry's premium private companies into our larger entity, thereby increasing the number of qualified nurses and licensed professional staff to serve our diversified client base," said James D. Durham, Chairman and Chief Executive Officer of Crdentia Corp. "In fact, the 75% year-over-year revenue growth we achieved in the quarter was primarily driven by the integration of three successful acquisitions that we completed last year. In addition to the solid top line results, we also narrowed our net loss due to on-going cost cutting initiatives and a $1.1 million non-cash gain from the settlement of a claim related to a business we acquired in 2003." Durham concluded, "During the first quarter we also made significant changes to our senior leadership and I am quite pleased with the team's early results. While we continue to expect to aggressively grow our business through strategic acquisitions, I also believe we are in a good position to take advantage of positive industry trends that should enable Crdentia to grow organically." Liquidity At March 31, 2006, the Company had total cash and cash equivalents of $0.1 million. During the first quarter of 2006, the Company raised approximately $2.0 million in debentures and an additional $1.15 million in equity. These proceeds were used to repay a $0.6 million over-advance on the Company's revolving line of credit, a repayment of $1.35 million on the term loan, with the balance used for working capital purposes. The Company is currently looking to raise another $1 million to $4 million of debt and equity for working capital needs, debt retirement and potential acquisitions. About Crdentia Corp. Crdentia Corp. is one of the nation's leading providers of healthcare staffing services. Crdentia seeks to capitalize on an opportunity that currently exists in the healthcare industry by targeting the critical nursing and allied shortage issue. There are many small, private companies that are addressing the rapidly expanding needs of the healthcare industry. Unfortunately, due to their relatively small capitalization, they are unable to maximize their potential, obtain outside capital or expand. By consolidating well-run small private companies into a larger public entity, Crdentia intends to facilitate access to capital, the acquisition of technology, providing greater diversity of client services and expanded distribution that, in turn, drive internal growth. For more information, visit http://www.crdentia.com/. Forward Looking Statements Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-KSB, Forms 10-QSB, and other filings with the Securities and Exchange Commission. Such risk factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company's management team, members of which have other business interests; the ability to successfully implement the Company's business plan; the ability to continue as a going concern; the ability to fund the Company's business and acquisition strategy; the growth of the temporary healthcare professional staffing business; difficulty in managing operations of acquired businesses; uncertainty in government regulation of the healthcare industry; and the limited public market for the Company's common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. AT THE COMPANY: AT FINANCIAL RELATIONS BOARD: James D. Durham Lasse Glassen Chairman and CEO 310-854-8313 972-850-0780 Crdentia Corp. Unaudited Condensed Consolidated Statements of Operations Three months ended March 31, 2006 2005 Revenue from services $8,984,823 $5,122,313 Direct operating expenses 7,235,519 4,048,820 Gross profit 1,749,304 1,073,493 Operating expenses: Selling, general, and administrative expenses 2,600,785 1,715,880 Gain from settlement of acquisition claim (1,064,693) -- Non-cash stock based compensation 378,260 78,846 Total operating expenses 1,914,352 1,794,726 Loss from operations (165,048) (721,233) Interest expense, net (1,193,539) (524,034) Loss before income taxes (1,358,587) (1,245,267) Income tax expense -- -- Net loss (1,358,587) (1,245,267) Non-cash preferred stock dividends -- (2,162,187) Net loss attributable to common stockholders $(1,358,587) $(3,407,454) Basic and diluted loss per common share attributable to common stockholders $(0.42) $(2.50) Weighted average number of common shares outstanding 3,214,729 1,363,496 Crdentia Corp. Selected Condensed Consolidated Balance Sheet Data March 31, December 31, 2006 2005 (unaudited) Cash and cash equivalents $148,678 $434,921 Total current assets 5,798,710 6,092,660 Property and equipment, net 394,874 418,837 Goodwill 22,977,377 22,977,377 Intangible assets, net 1,804,161 1,985,585 Total assets 31,905,531 31,992,460 Convertible preferred stock and warrants 10,859,603 10,859,603 Total liabilities 11,936,411 14,543,790 Total stockholders' equity 9,109,517 6,589,067 DATASOURCE: Crdentia Corp. CONTACT: James D. Durham, Chairman and CEO of Crdentia Corp., +1-972-850-0780; or Lasse Glassen of Financial Relations Board, +1-310-854-8313, , for Crdentia Corp. Web site: http://www.crdentia.com/

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