Alphatec Spine, Inc. Enters Into Exclusive Distribution Agreement With Parcell Spine, LLC

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CARLSBAD, Calif., Jan. 13, 2010 (GLOBE NEWSWIRE) — Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, with a focus on treating conditions related to the aging spine, announced today that it has entered into an exclusive distribution agreement with Parcell Spine, LLC, pursuant to which Parcell will license and supply Alphatec Spine with Parcell’s proprietary adult stem cells for the treatment of spinal disorders

The stem cell, which Parcell commercially calls the ELA stem cell, is a unique adult stem cell that possesses self-renewal and bone regenerative capabilities. The cell is isolated from healthy, living adult donors. The ELA stem cell is highly concentrated in that these cells are derived from adult donors using Parcell’s proprietary isolation method that has the potential to yield up to six hundred times more cells than a similar volume of mesenchymal stem cells harvested from bone marrow.

The US spinal Biologics market is estimated to be more than $1.5 Billion in 2010.

“The addition of an osteoprogenitor stem cell will provide Alphatec with an excellent position in the growing market of stem cell therapies for treating disorders of the spine, and will be a strong complement to the other innovative technologies in our core fusion and aging spine portfolios,” said Dirk Kuyper, the Company’s President and CEO. Mr. Kuyper added, “We are expecting to release this product in the second half of 2010, and we could drive meaningful revenue from this product in 2011. We have been investing heavily into building out our biologics platform to support both our core fusion and aging spine portfolios of products. This product, our Profuse scaffold and the recently announced distribution agreement with ETEX Corporation, are all examples of our focus on providing biologic solutions to improving fusion rates.”

Parcell Spine is an affiliate of Parcell Laboratories, a privately owned group of affiliated biotechnology companies that is located in Westwood, MA. Parcell holds the exclusive license from The Brigham and Women’s Hospital in Boston, Massachusetts to the intellectual property covering the ELA stem cell and its isolation. Parcell Spine is dedicated to providing adult stem cells to meet the demands for regenerative spine therapeutics. “We believe that our supply and distribution agreement with Alphatec is an important strategic milestone for the Spine Division of Parcell Laboratories. It is consistent with our objective of partnering with best-of-breed companies that are positioned to fill the gap in the large orthobiologics arena. Alphatec Spine has laser sharp focus on bringing leading products to market to aid the healing of the aging spine and we are confident that we have made the right decision in choosing them as our partner,” said Pamela Layton, CEO of Parcell Spine.

About Alphatec Spine

Alphatec Spine, Inc. is a wholly owned subsidiary of Alphatec Holdings, Inc. (Nasdaq:ATEC). Alphatec Spine is a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, primarily focused on the aging spine. The Company’s mission is to combine world-class customer service with innovative, surgeon-driven design that will help improve the aging patient’s quality of life. The Company is poised to achieve its goal through new solutions for patients with osteoporosis, stenosis and other aging spine deformities, improved minimally invasive products and techniques and integrated biologics solutions. In addition to its U.S. operations, The Company also markets its spine products in Europe. In Asia, the Company markets a broad line of spine and orthopedic products through its subsidiary, Alphatec Pacific, Inc.

The Alphatec Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3520

Also visit the Aging Spine Center, www.agingspinecenter.com, a web-based information portal for healthcare providers and patients regarding aging spine disorders and their treatment. The Company is working with the National Osteoporosis Foundation as well as other clinical portals that provide peer-reviewed content, to populate the Aging Spine Center. The interactive website will enable patients to review pertinent information about disorders that affect the aging spine in an easy-to-understand format that includes videos, graphics and questions that should be asked of caregivers. Medical information will include published abstracts regarding the aging spine.

About Parcell Spine

Parcell Spine, LLC, an affiliate of Parcell Laboratories, is a privately owned biotechnology company located in Westwood, MA. Parcell Spine is dedicated to developing therapeutic uses for osteoprogenitor cells and supplying such cells to third parties for distribution and/or end-users.

Forward Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to: Alphatec Spine’s ability to accelerate new product momentum, bring to market differentiated products and commercialize its product pipeline. Alphatec Spine cautions investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including, but not limited to, the following: Alphatec Spine’s ability to meet its 2009 or 2010 financial guidance, the growth rate of the spine market related to aging and elderly patients, uncertainty of success in developing new products or products currently in Alphatec Spine’s pipeline, including osteoprogenitor stem cells, and those products that are intended to treat disorders prevalent in aging patients, failure to achieve acceptance of Alphatec Spine’s products, including osteoprogenitor stem cells, by the surgeon community, failure to obtain FDA clearance or approval for new products, or unexpected or prolonged delays in the process, including without limitation osteoprogenitor stem cells, Alphatec Spine’s ability to develop and expand its business in the United States, Asia and Europe, continuation of favorable third party payor reimbursement for procedures performed using Alphatec Spine’s products, unanticipated expenses or liabilities or other adverse events affecting cash flow or Alphatec Spine’s ability to successfully control its costs or achieve profitability, uncertainty of additional funding, Alphatec Spine’s ability to compete with other competing products and with emerging new technologies, product liability exposure, patent infringement claims and claims related to Alphatec Spine’s intellectual property. Please refer to the risks detailed from time to time in Alphatec Spine’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Alphatec Spine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.

CONTACT:  Alphatec Spine, Inc.
          Peter C. Wulff, Chief Financial Officer
          760-494-6746
          investorrelations@alphatecspine.com
          Westwicke Partners
          Lynn C. Pieper
          415-202-5678
          lynn.pieper@westwicke.com

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