Synovis Life Technologies Completes Purchase of Pegasus Biologics Assets

Manufacturing of Pegasus Biologics Soft Tissue Repair Products to Resume
Shortly;

Acquisition Opens Opportunities in Orthopedics and Wound Care Markets
ST. PAUL, Minn.--(Business Wire)--
Synovis Life Technologies, Inc. (Nasdaq: SYNO), through a wholly-owned
subsidiary, has completed its purchase of substantially all the assets of
Pegasus Biologics, Inc., a privately held medical device company focused on the
development of advanced biological solutions for soft tissue repair. As
announced on July 7, the purchase price was $12.1 million in cash. Synovis will
retain manufacturing operations in Irvine, Calif., and operate the acquired
assets as a separate division.

Richard W. Kramp, Synovis Life Technologies president and chief executive
officer, said, "In the short time since we signed the purchase agreement, our
integration team has made excellent progress toward resuming operations. We have
identified, contacted, interviewed and successfully hired 25 employees most
critical to resume production, regulatory and clinical affairs, quality and
customer service. These talented people began work as Synovis employees this
week. Further, we are in the process of interviewing former Pegasus marketing
and sales professionals and distributors to start rebuilding a team dedicated to
promoting the OrthADAPT® and Unite® products, and serving our new customers. In
addition, we signed a three-year facilities lease and are reviewing internal and
external candidates for long-term leadership of this division."

Kramp continued, "Growth through acquisition has been an important long-term
strategy to augment Synovis` organic growth. We bought this business at a very
attractive price, given the established OrthADAPT® and Unite® products with U.S.
and European regulatory clearances, complementary soft tissue repair
technologies and expanding market opportunities for soft tissue in orthopedics
and wound care."

In 2008, Pegasus generated $9.1 million in revenue and had about 75 employees at
year-end. Approximately 10,000 patients have been treated with Pegasus` equine
pericardial products in various orthopedic and complex wound applications from
March 2006 to May 2009.

Established Technologies in Large, Growing Markets

The acquired technologies utilize flexible cross linking and sterilization
processes which stabilize and sterilize biological tissue for use in orthopedic,
wound, oral/dental, spine and neurological, breast, abdominal and thoracic
applications. These technologies have the potential to yield additional
pioneering applications in the future.

The acquired assets include two commercialized products:

* The OrthADAPT Bioimplant, an equine pericardial-based scaffold developed with
patented technologies for orthopedic surgical applications, including rotator
cuff and Achilles tendon repair, where there is a clinical need to reinforce the
repair.
* The Unite Biomatrix, an equine pericardial-based wound dressing that provides
a new treatment alternative for chronic wounds, such as diabetic foot ulcers and
pressure ulcers, which are worldwide healthcare concerns.

In addition, Synovis acquired the OrthADAPT PR product, a combination product
composed of equine pericardial collagen and woven PEEK fabric, which received
FDA marketing clearance in May 2009. OrthADAPT PR is the world`s first
biologically based device specifically engineered for arthroscopic delivery for
rotator cuff repair and represents a potentially revolutionary advance for this
surgical procedure.

About Synovis Life Technologies

Synovis Life Technologies, Inc., based in St. Paul, Minn., is a diversified
medical device company that develops, manufactures and markets medical devices
for the surgical treatment of disease. The company`s products include
implantable biomaterials for soft tissue repair, devices for microsurgery and
surgical tools - all designed to reduce risks and/or facilitate critical
surgeries, improve patient outcomes and reduce healthcare costs. For additional
information on Synovis Life Technologies and its products, visit the company`s
Web site at www.synovislife.com.

Forward-looking statements contained in this press release are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The statements can be identified by words such as "should", "could",
"may", "will", "expect", "believe", "anticipate", "estimate", "continue", or
other similar expressions. Certain important factors that could cause results to
differ materially from those anticipated by the forward-looking statements made
herein include the timing of product introductions, the ability of our expanding
direct sales force to grow revenues, outcomes of clinical and marketing trials
as well as regulatory submissions, the number of certain surgical procedures
performed, the ability to identify, acquire and successfully integrate suitable
acquisition candidates, the cost and outcome of intellectual property
litigation, any operational or financial impact of the current global economic
downturn, current market conditions affecting its investments and any claims for
indemnification related to the sale of the interventional business, as well as
the other factors found in the company`s reports to the Securities and Exchange
Commission, including our Annual Report on Form 10-K, as amended by Form 10-K/A
(Amendment No. 1) for the year ended October 31, 2008.

Padilla Speer Beardsley Inc.
Nancy A. Johnson, 612-455-1745
or
Marian Briggs, 612-455-1742
or
Synovis Life Technologies, Inc.
Richard Kramp, President and CEO, 651-796-7300
or
Brett Reynolds, CFO, 651-796-7300

Copyright Business Wire 2009