Spinal Restoration, Inc. Receives FDA IDE Approval

Business Wire, May 13, 2008

AUSTIN, Texas -- Spinal Restoration, Inc. announced today that the U.S. Food and Drug Administration has approved an Investigational Device Exemption (IDE) pilot study of the Biostat([R])Disc Augmentation System. Enrollment in the 15 patient pilot study is expected to begin at three clinical sites in July.

"IDE approval is a major milestone for our company and represents a tremendous accomplishment for our management team, business partners, and clinical and scientific advisors," said Gary Sabins, President and CEO of Spinal Restoration, Inc. "Based upon available data and results from our preclinical testing, we are confident that this clinical study will support the safety and efficacy of this new therapy and help us to advance into a larger pivotal trial of the Biostat Disc Augmentation System."

The Biostat Disc Augmentation System consists of BIOSTAT BIOLOGX([R])Fibrin Sealant, a human derived, biologic tissue sealant, and a proprietary application system designed to safely deliver the biologic to the intervertebral disc. The Biostat Disc Augmentation System has been specifically developed to address chronic low back pain resulting from degenerative cracks and fissures which form within the intervertebral disc. This condition, called Internal Disc Disruption (IDD), has been identified as the source of chronic low back pain in up to 40% of patients. Preliminary data suggest that application of BIOSTAT BIOLOGX Fibrin Sealant to the disc may alleviate pain by sealing the painful disruptions, reducing inflammation, and enhancing tissue repair. This procedure could represent a new, minimally invasive therapy option for millions of patients suffering from chronic low back pain whose primary treatment options today are continued conservative therapy or spinal surgery.

Initial clinical results from the IDE pilot study are expected to be available in early 2009. These results will be combined with additional preclinical testing data to support an application to start a pivotal trial of the Biostat Disc Augmentation System later that year.

About Spinal Restoration

Spinal Restoration restores patients' lives by delivering new therapies that address unmet needs in spine health management. These therapies are minimally invasive, early interventions with clinically proven results. The company is working with a diverse, highly regarded group of clinical and scientific advisors to develop the Biostat Disc Augmentation System, a proprietary resorbable biologic and delivery system for the treatment of chronic disc pain. Visit www.spinalrestoration.com for more information.