Bacterin anticipates 134% increase in revenue for second-quarter 2011

Bacterin International Holdings, Inc. (NYSE Amex: BONE), a leader in the development of revolutionary bone graft material and anti-infective coatings for medical applications, expects to report its seventh consecutive quarter of record revenue growth.

Based on preliminary unaudited information, the company expects to report Q2 2011 revenue of approximately $7.5 million, representing an increase of 25% from $6.0 million in the previous quarter, and up 134% from $3.2 million in the same year-ago quarter.

The revenue increase is attributed to continued growth in the number of domestic hospitals and new international accounts using Bacterin products, as driven by the company's expanding direct and outside sales force.

"Our record revenue reflects the tremendous operational progress we made during the quarter," said Guy Cook, the company's chairman and CEO. "This included the launch of our third human acellular biological scaffold during the quarter, hMatrix, which has opened the door to a $2.5 billion market in the U.S. alone.

"We expect this revenue momentum and domestic and international market expansion to continue building throughout the rest of the year, especially with the recent addition of Bacterin's product line to ROI's nationwide network of hospitals and medical practices," said Cook. "We also plan to leverage our direct sales force with new product lines that complement existing ones."

The company's successful capital raise during the quarter has increased working capital for continued product development, including enhancing the newly acquired Robinson MedSurg orthopedic implants with Bacterin's anti-microbial coating technology. Bacterin is pursuing the FDA market approval process to add its anti-microbial coatings to the RMS product line, and plans to submit a 510(k) application before the end of the year.

Bacterin's management plans to hold a conference call in the second week of August to discuss the second quarter and will announce the details of the call approximately two weeks prior. These preliminary results are subject to a final auditor's review and filing of its quarterly report in Form 10-Q.