TTG Tutogen Medical,

Company Reports 2nd Consecutive Profitable Quarter ALACHUA, Fla., Feb. 12 /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 first quarter of fiscal year 2007 ended December 31, 2006. Highlights for the quarter include: * Total revenues increased 43% to $11.5 million compared to $8.0 million in the comparable quarter of fiscal year 2006; * U.S. revenues increased 50% compared to the first quarter of fiscal 2006; * International revenues increased 27% versus the comparable quarter; * Sales of dental products increased 36% versus last year's first quarter; * Sales of spine products increased to $1.3 million compared to $.4 million for the comparable quarter of 2006; * Sales of surgical specialty products increased 35% versus comparable quarter of 2006; * Net income for the first quarter of fiscal year 2007 was $361,000, or $0.02 per share, compared to a net loss of $81,000, or negative $0.01 per share, in the first quarter of fiscal year 2006. For the first quarter of fiscal year 2007, Tutogen reported a 43% increase in revenues to $11.5 million compared to $8.0 million in the first quarter of fiscal year 2006. The Company reported net income of $361,000, or $0.02 per fully diluted share, compared to a net loss of $81,000, or negative $0.01 per fully diluted share in the comparable quarter last year. The U.S. revenues were $8.1 million or 50% higher than the first quarter fiscal year 2006 revenues of $5.4 million. 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. Sales of dental products increased 36% from the same period a year ago. Spine revenues for the quarter increased by $.9 million, as the Company supplied Zimmer Spine with two new machined spine products, Puros C and Puros A, which began shipping at the end of the last fiscal year. Surgical specialty product sales (urology, ophthalmology, hernia, breast reconstruction and ENT) increased by 35% in 2007 compared to the first quarter of fiscal 2006, due to the introduction of new hernia products and the initial shipments of grafts used for breast reconstruction following radical mastectomies. International sales increased 27% to $3.3 million compared to last year's first quarter sales of $2.6 million. The increase is primarily due to increased sales efforts by several key distributors in various countries. Gross margins for the quarter ended December 31, 2006 increased to 61.4% from 58.6% for the comparable period in the prior year. This margin improvement is a direct result of improved production efficiencies, overall sales volume and penetration of new products to market. Guy L. Mayer, Chief Executive Officer of Tutogen Medical, said, "We are pleased with the results of the first quarter fiscal year 2007. We achieved strong growth in all product areas, led by a 36% increase in our dental business. We are particularly encouraged with the 35% increase in surgical specialty revenue realized by our initial shipments of hernia and breast reconstruction products to our distributors, Davol and Mentor Corporation, respectively. We are also excited about the increased sales in our spine business, resulting from the initial shipments of the new Puros A and Puros C specialty machined allografts. Mr. Mayer stated, "We are beginning to gain traction with our strategic business plan, as proven by our continued financial improvement over the past five quarters. With the expansion of our revenues in both existing and new product markets, we believe that measurable progress is now being made. We remain dedicated to building upon this foundation and creating a consistently profitable company." Conference Call Tutogen Medical will conduct a conference call on Monday, February 12, 2007, beginning at 10:00 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.asp. A replay of the call will be available at (800) 642-1687 or (706) 645-9291, conference ID number: 8088074 for 3 days following the call, and the web cast can be accessed at http://www.tutogen.com/investor.asp 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 FINANCIAL SUMMARY (In thousands except per share data) (unaudited) THREE MONTHS ENDED DECEMBER 31, 2006 2005 REVENUE $11,463 $8,034 GROSS PROFIT 7,042 4,705 OPERATING EXPENSES 6,330 4,948 OPERATING INCOME (LOSS) 712 (243) FOREIGN EXCHANGE (LOSS) GAIN (38) 119 OTHER INCOME 34 15 INTEREST EXPENSE (274) (78) INCOME TAX EXPENSE 73 88 NET INCOME (LOSS) $361 $(81) BASIC EARNINGS (LOSS) PER SHARE $0.02 $(0.01) DILUTED EARNINGS (LOSS) PER SHARE $0.02 $(0.01) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) DECEMBER 31, SEPTEMBER 30, 2006 2006 CURRENT ASSETS $25,699 $24,250 FIXED ASSETS, NET 13,999 12,940 DEFERRED INCOME TAXES AND OTHER ASSETS 1,726 1,727 TOTAL ASSETS $41,424 $38,917 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES $17,214 $16,035 LONG TERM DEBT 3,527 3,673 DEFERRED DISTRIBUTION FEES AND OTHER NONCURRENT ASSETS 3,456 3,988 SHAREHOLDERS' EQUITY 17,227 15,221 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $41,424 $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/investor.asp Web site: http://www.tutogen.com/

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