Replidyne Announces Restructuring of Operations

LOUISVILLE, Colo., Aug. 27 /PRNewswire-FirstCall/ -- Replidyne, Inc.
(Nasdaq: RDYN) today announced the restructuring of its operations reducing
its current employee headcount by approximately 80% to 5 employees in actions
that are scheduled to take place during September 2008 and October 2008. As a
result of these actions Replidyne will suspend further development activities
of REP3123, its investigational agent for the treatment of Clostridium
difficile (C. difficile) bacteria and C. difficile Infection (CDI), and novel
anti-infective compounds based on its DNA replication inhibition technology.
Following completion of the restructuring actions, the Company will limit its
activities to completing its review of previously announced strategic
alternatives.
"The actions outlined today position us to focus on the strategic
alternatives process that we initiated several months ago, as well as preserve
our cash resources," stated Kenneth J. Collins, President and Chief Executive
Officer of Replidyne. "The process we are conducting involves a number of
alternatives including merger or acquisition of the company together with the
possible sale of our C. difficile and DNA replication inhibition programs.
While the process is ongoing, we are encouraged by our progress to date."
The Company estimates that it will incur $3.1 million of costs related to
the restructuring of its operations comprised of $1.6 million for employee
severance benefits, $0.8 million for lease payments in excess of expected
sub-lease income and $0.7 million of non-cash expense for the write down of
impaired fixed assets.
At July 31, 2008 the Company reported $60.7 million in cash and cash
equivalents and short term investments and had recorded current liabilities of
$10.2 million.
Safe Harbor
This press release contains plans, intentions, objectives, estimates and
expectations that constitute forward-looking statements about Replidyne, Inc.
that involve significant risks and uncertainties. Actual results could differ
materially from those discussed due to a number of factors including, the
outcome of the Company's strategic alternatives process; resolution by the
Company of the matters raised in the Warning Letter received from the FDA in
January 2008; the success and timing of pre-clinical studies and clinical
trials; the Company's ability to obtain and maintain regulatory approval of
product candidates and the labeling under any approval that may be obtained;
plans to develop and commercialize product candidates; the loss of key
scientific or management personnel; the size and growth of the potential
markets for the Company's product candidates and the Company's ability to
serve those markets; regulatory developments in the U.S. and foreign
countries; the rate and degree of market acceptance of any future products;
the accuracy of Company estimates regarding expenses, future revenues and
capital requirements; the Company's ability to obtain and maintain
intellectual property protection for our product candidates; the success of
competing drugs that are or become available; and the performance of third
party manufacturers. These and additional risks and uncertainties are
described more fully in the Company's most recent Form 10-Q filed with the SEC
under the Securities Exchange Act of 1934. Copies of filings made with the SEC
are available through the SEC's electronic data gathering analysis and
retrieval system (EDGAR) at http://www.sec.gov. All forward-looking
statements made in the press release are made as of the date hereof and the
Company assumes no obligation to update the forward-looking statements in the
document.
SOURCE Replidyne, Inc.

Mark Smith, Chief Financial Officer of Replidyne, +1-303-996-5535