Osteotech Receives Its First Grafton(R) DBM 510(k) FDA Clearance Bone Graft Paste

EATONTOWN, N.J., Nov. 29 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE) announced today that the Food and Drug Administration ("FDA")
has cleared its 510(k) for Grafton Plus(R) DBM Paste for use as a bone graft
extender, bone graft substitute and bone void filler in orthopedic procedures.
    Sam Owusu-Akyaw, Osteotech's President and Chief Operating Officer,
stated, "The Grafton Plus(R) DBM Paste 510(k) for orthopedic use is the first
of five previously reported 510(k) applications that the Company has filed
with the FDA covering its family of Grafton(R) DBM products.  We are
particularly pleased that this 510(k) application has been cleared for all the
indications for which we applied.  To our knowledge, this is the only DBM
product on the market to receive clearance as a bone graft extender, bone
graft substitute and bone void filler."
    Mr. Owusu-Akyaw concluded, "We look forward to the FDA clearing, in the
near future, the remaining four 510(k) applications covering our Grafton(R)
DBM family of products.  We have been working diligently with the FDA
reviewers on all of our 510(k) applications and we believe that they will
receive clearance by the Agency."
    Grafton Plus(R) DBM Paste is a demineralized bone product that has been
proven to be osteoinductive in an athymic rat in vivo model as well as being
osteoconductive.  Further, results of bone formation studies in animals showed
that Grafton Plus(R) DBM Paste performed comparably to autograft.  Grafton
Plus(R) DBM is prepared utilizing a proprietary processing method that has
been validated to consistently produce DBM that is osteoinductive in an
athymic rat model and has been validated to inactivate a panel of viruses,
including: HIV-1, hepatitis B (using a duck hepatitis virus as a model),
hepatitis C (using a bovine diarrhea virus as a model), CMV and polio.  This
validated process is used to further reduce the risk of disease transmission
beyond the protection provided by donor testing and screening procedures.

    Certain statements made in this press release that are not historical
facts contain forward-looking statements (as such are defined in the Private
Securities Litigation Reform Act of 1995) regarding the Company's future
plans, objectives and expected performance.  Any such forward-looking
statements are based on assumptions that the Company believes are reasonable,
but are subject to a wide range of risks and uncertainties and, therefore,
there can be no assurance that the actual results may not differ materially
from those expressed or implied by such forward-looking statements.  Factors
that could cause actual results to differ materially include, but are not
limited to, the failure of the FDA to clear the Company's additional 510(k)
submissions for its Grafton(R) DBM and private label product lines, the
continued acceptance and growth of current products and services, differences
in anticipated and actual product and service introduction dates, the ultimate
success of those products in their marketplace, the impact of competitive
products and services, the availability of sufficient quantities of suitable
donated tissue and the success of cost control and margin improvement efforts.
Certain of these factors are detailed from time to time in the Company's
periodic reports (including the Annual report on Form 10-K for the year ended
December 31, 2004 and the Form 10-Q for each of the first three quarters of
2005) filed with the Securities and Exchange Commission.  All information in
this press release is as of November 28, 2005 and the Company undertakes no
duty to update this information.

    Osteotech, Inc., headquartered in Eatontown, New Jersey, is a leading
provider of human bone and bone connective tissue for transplantation and an
innovator in the development and marketing of biomaterial and implant products
for musculoskeletal surgery.  For further information regarding Osteotech or
this press release, please go to Osteotech's website homepage at
http://www.osteotech.com and to Osteotech's Financial Information Request Form
website page at http://www.osteotech.com/finrequest.htm.