RTI Surgical (RTIX) 8-K Regeneration Technologies Announces 2007 First Quarter Results

Exhibit 99.1

For more information, contact:

Thomas F. Rose

Chief Financial Officer

Wendy Crites Wacker, APR

Corporate Communications

Phone (386) 418-8888

Susan A. Noonan

The SAN Group, LLC

Phone (212) 966-3650

Kate Sharadin

The Sharadin Group

Phone (425) 869-9778

REGENERATION TECHNOLOGIES ANNOUNCES 2007 FIRST QUARTER RESULTS

Company Will Hold Conference Call at 9 a.m. ET

ALACHUA, Fla. (May 8, 2007) – Regeneration Technologies, Inc. (RTI) (NASDAQ: RTIX), a leading processor of orthopedic and other biologic implants, announced today that the company’s revenues were $22.0 million for the first quarter of 2007, an increase of 20 percent compared to $18.4 million for the first quarter 2006.

For the first quarter ended March 31, 2007, the company reported net income of $134,000 and break-even earnings per diluted share, compared to net loss of $1.3 million and net loss per diluted share of $0.04 for the first quarter 2006.

“We’re very pleased to report a return to profitability,” said Brian K. Hutchison, RTI chairman, president and CEO. “The first quarter results reflected increased levels of donated tissue available for distribution and strong demand for each of our product lines. The changes we made to our business model in the second half of 2006 are starting to move the company into a positive direction, and we look forward to that trend continuing.”

First Quarter 2007 Analysis

Spinal:Revenues from distribution of spinal implants were $9.5 million for the first quarter, compared to $9.2 million in the previous year, representing an increase of 4 percent. The increase in revenues relates to higher average distribution fees due to a change in mix of products distributed and fee increases initiated in the fourth quarter of 2006.

Sports Medicine:Revenues from distribution of sports medicine implants were $5.4 million for first quarter, compared to $3.2 million for the previous year, representing an increase of 69 percent. Sports medicine revenues increased as a result of average revenue per unit increasing by 14 percent primarily due to increased fees on tendons and changes in the distribution mix. In addition, unit volume increased by 49 percent primarily due to higher numbers of tendons distributed, including our assembled tendons, as compared to the first quarter of the previous year.

Bone Graft Substitutes: Revenues from distribution of bone graft substitutes were $4.5 million for the first quarter, compared to $3.8 million for the previous year, representing an increase of 18 percent. The increase in revenues was attributable to higher average distribution fees due to a change in mix of products during the quarter.

Cardiovascular: Revenues from distribution of cardiovascular implants were $938,000 for the first quarter, compared to $1.3 million for the previous year, representing a decrease of 27 percent. The decreased revenue reflected our exit activities in this area as we continue to distribute remaining inventories.

General Orthopedic: Revenues from general orthopedic implants were $213,000 for the first quarter, compared to $277,000 for the first quarter of the previous year, representing a decrease of 23 percent. The decline related to a decrease in unit volume during the quarter.

Other Revenues: Other revenues were $1.5 million for the first quarter, compared to $709,000 for the previous year, representing an increase of 114 percent. These revenues are comprised primarily of fees for tissue recoveries for other processors, which represented the majority of the increase, as well as laboratory testing and other fees.

Conference Call

RTI will hold a live conference call and simultaneous audio Web cast today, May 8, 2007 at 9 a.m. ET to discuss first quarter results. The conference call can be accessed by dialing 800-593-7169, passcode RTIX Q1. The Web cast can be accessed through the investor section of RTI’s Web site atwww.rtix.com. A telephone replay of the call will be available through June 8, 2007 and can be accessed by calling 866-423-2216; the replay will also be available atwww.rtix.com.

About Regeneration Technologies, Inc.

RTI processes allograft and xenograft tissue into shaped implants for use in orthopedic and other surgeries with a commitment to science, safety and innovation.

RTI also holds the patents on BioCleanse, the only proven tissue sterilization process validated to eliminate viruses, bacteria, fungi and spores from tissue without impacting the structural or biomechanical integrity of the tissue. The company has distributed more than half a million allograft implants sterilized with the BioCleanse process with zero incidence of infection. RTI is accredited by the American Association of Tissue Banks.

Except for historical information, any statements made in this press release about the company’s anticipated financial results, growth rates, new product introductions, future operational improvements and results, regulatory approvals or changes to the company’s agreements with its distributors are forward-looking statements subject to risks and uncertainties, such as those described in the company’s public filings on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results reflected in these forward-looking statements. Copies of the company’s SEC filings may be obtained by contacting the company or the SEC or by visiting RTI’s Web site atwww.rtix.com or the SEC’s Web site atwww.sec.gov.

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REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended March 31,
	2007			2006
Revenues:
Fees from tissue distribution	$	20,497		$	17,716
Other revenues		1,518			709
Total revenues		22,015			18,425
Costs of processing and distribution		13,913			12,932
Gross profit		8,102			5,493
Expenses:
Marketing, general and administrative		6,633			6,278
Research and development		1,227			1,219
Gain on business exchange		(197	)		—
Asset abandonments		4			—
Total expenses		7,667			7,497
Operating income (loss)		435			(2,004	)
Other income (expense):
Interest income		179			248
Interest expense		(201	)		(231	)
Total other (expense) income - net		(22	)		17
Income before income tax (expense) benefit		413			(1,987	)
Income tax (expense) benefit		(279	)		691
Net income (loss)	$	134		$	(1,296	)
Net income (loss) per common share - basic	$	0.00		$	(0.04	)
Net income (loss) per common share - diluted	$	0.00		$	(0.04	)
Weighted average shares outstanding - basic		29,775,382			29,711,763
Weighted average shares outstanding - diluted		30,119,803			29,711,763

REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES

Revenues

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2007		2006
Fees from tissue distribution:
Spinal constructs	$	9,498	$	9,180
Sports medicine		5,395		3,188
Bone graft substitutes		4,453		3,782
Cardiovascular		938		1,289
General orthopedic		213		277
Other revenues		1,518		709
Total	$	22,015	$	18,425

REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

	March 31, 2007			December 31, 2006
Assets
Current Assets:
Cash and cash equivalents	$	16,567		$	15,509
Accounts receivable - less allowances of $270 in 2007 and $248 in 2006		7,279			9,337
Inventories - net		36,922			37,026
Prepaid and other current assets		1,325			941
Deferred tax assets - current		9,912			10,488
Total current assets		72,005			73,301
Property, plant and equipment - net		40,333			41,047
Deferred tax assets		5,933			4,893
Goodwill and other intangible assets		9,021			8,860
Other assets - net		1,662			1,707
Total assets	$	128,954		$	129,808
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	7,626		$	7,949
Accrued expenses		4,813			6,293
Current portion of long-term obligations		2,004			2,275
Total current liabilities		14,443			16,517
Long-term obligations - less current portion		3,020			3,401
Other long-term liabilities		743			—
Total liabilities		18,206			19,918
Stockholders’ Equity:
Common stock, $.001 par value: 50,000,000 shares authorized; 29,776,315 and 29,773,515 shares issued and outstanding, respectively		30			30
Additional paid-in capital		130,496			129,772
Accumulated deficit		(19,764	)		(19,898	)
Less treasury stock, 133,296 shares, at cost		(14	)		(14	)
Total stockholders’ equity		110,748			109,890
Total liabilities and stockholders’ equity	$	128,954		$	129,808

REGENERATION TECHNOLOGIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Three Months Ended March 31,
	2007			2006
Cash flows from operating activities:
Net income (loss)	$	134		$	(1,296	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		1,426			1,251
Amortization of deferred financing costs		43			43
Provision for bad debts		25			—
Provision for inventory writedowns		161			423
Provision for product returns		38			—
Amortization of deferred revenue		—			(35	)
Deferred income tax benefit		(464	)		(691	)
Deferred stock-based compensation and nonqualified option expense		717			744
Gain on business exchange		(197	)		—
Loss on asset abandonments		4			—
Changes in assets and liabilities:
Accounts receivable		1,995			2,312
Inventories		(56	)		(158	)
Prepaid and other current assets		(384	)		(794	)
Other assets		(198	)		33
Accounts payable		(608	)		356
Accrued expenses		(1,480	)		(2,100	)
Other long-term liabilities		743			(63	)
Net cash provided by operating activities		1,899			25
Cash flows from investing activities:
Purchases of property, plant and equipment		(204	)		(226	)
Proceeds from sale of property, plant and equipment		8			200
Net cash used in investing activities		(196	)		(26	)
Cash flows from financing activities:
Proceeds from exercise of stock options		7			4
Payments on long-term obligations		(652	)		(571	)
Net cash used in financing activities		(645	)		(567	)
Net increase (decrease) in cash and cash equivalents		1,058			(568	)
Cash and cash equivalents, beginning of period		15,509			25,559
Cash and cash equivalents, end of period	$	16,567		$	24,991