Integra LifeSciences Reports Third Quarter 2009 Financial Results

Revenues for the Third Quarter Increased to $172 Million

Outstanding Debt Reduced by $58 million
PLAINSBORO, N.J., Nov. 4, 2009 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings
Corporation (Nasdaq:IART) today reported its financial results for the third
quarter ending September 30, 2009. Total revenues were $172.3 million,
reflecting an increase of $5.3 million, or 3%, over the third quarter of 2008.
Excluding the impact of currency exchange rates, revenues increased 4%. Revenues
by product category are presented in a table at the end of this press release.

"We achieved solid top- and bottom-line growth as our business continues to
execute well, despite ongoing economic pressures," said Integra's President and
Chief Executive Officer, Stuart Essig.

The Company reported GAAP net income of $14.4 million, or $0.49 per diluted
share, for the third quarter of 2009, compared to GAAP net loss of $16.9
million, or a loss of $0.60 per diluted share, for the third quarter of 2008.

Adjusted net income for the third quarter of 2009, computed with the adjustments
to GAAP reporting set forth in the attached reconciliation, was $15.6 million,
or $0.53 per diluted share. Adjusted net income for the third quarter of 2008,
computed with the adjustments to GAAP reporting set forth in the attached
reconciliation, was $13.3 million, or $0.45 per diluted share.

Integra generated $28.4 million in cash flows from operations and used $5.7
million of cash on capital expenditures in the third quarter of 2009. For the
four quarters ended September 30, 2009, Integra's cash flows from operations
exceeded $120 million.

During the quarter, Integra repurchased $17.7 million par value of its 2.75%
senior convertible notes due June 2010 for $17.3 million in cash and paid down
$40.0 million of its credit facility.

"Our strong operating cash flow and cash position have enabled us to repurchase
over $68 million of our notes and pay down $100 million on our credit facility
since the beginning of the year," said Jack Henneman, Integra's Chief Financial
Officer. "We finished the quarter with $106.7 million in cash and $140 million
in capacity under our revolving credit facility."

Adjusted EBITDA for the third quarter of 2009, computed with the adjustments to
GAAP reporting set forth in the attached reconciliation, was $34.9 million, an
increase of 11% compared to the same period last year. Adjusted EBITDA excluding
stock-based compensation for the third quarter of 2009, computed with the
adjustments to GAAP reporting set forth in the attached reconciliation, was
$38.7 million, an increase of 12% compared to the same period last year.

The Company is now providing adjusted net income excluding intangible asset
amortization. For the third quarter of 2009, adjusted net income excluding
intangible asset amortization, computed with the adjustments to GAAP reporting
set forth in the attached reconciliation, was $18.8 million, or $0.64 per
diluted share. Adjusted net income excluding intangible asset amortization for
the third quarter of 2008, computed with the adjustments to GAAP reporting set
forth in the attached reconciliation, was $16.4 million, or $0.56 per diluted
share.

Outlook for 2009

The Company is updating its GAAP earnings per share guidance and reiterating its
revenue and adjusted earnings per share guidance for the full year 2009. The
Company continues to anticipate revenues between $680 million and $700 million.
The Company is guiding to GAAP earnings per diluted share of between $1.59 and
$1.79 and to adjusted earnings per diluted share of between $2.00 and $2.20. In
accordance with our usual practice, expectations for financial performance do
not include the impact of acquisitions or other strategic corporate transactions
that have not yet closed.

In the future, the Company may record, or expects to record, certain additional
revenues, gains, expenses or charges (such as acquisition-related charges,
facility consolidation, manufacturing and distribution transfer, and system
integration charges, and non-cash interest expense related to the application of
FASB Staff Position APB 14-1) that it will exclude in the calculation of
adjusted EBITDA and adjusted earnings per share for historical periods and in
providing adjusted earnings per share guidance.

On a quarterly basis, the Company expects to incur approximately $4 million, or
$0.08 per share, of share-based compensation expense associated with FAS 123R in
2009. This non-cash compensation expense is reflected in both the GAAP and
adjusted earnings per share guidance for 2009 provided above.

Conference Call

Integra has scheduled a conference call for 8:30 AM ET on Wednesday, November 4,
2009 to discuss financial results for the third quarter of 2009 and
forward-looking financial guidance. The conference call will be hosted by Stuart
Essig, President and Chief Executive Officer of Integra, and will be open to all
listeners. Additional forward-looking information may be discussed in a question
and answer session following the call.

Access to the live call is available by dialing 719-325-4863 and using the
passcode 6739174. The call can also be accessed through a webcast via a link
provided on the Investor Relations homepage of Integra's website at
www.Integra-LS.com. Access to a replay is available through November 18, 2009 by
dialing 719-457-0820 and using the passcode 6739174. The webcast will also be
archived under Events & Presentations in the Investor Relations section of its
website (www.Integra-LS.com).

Integra LifeSciences Holdings Corporation, a world leader in regenerative
medicine, is a global medical device company dedicated to improving the quality
of life for millions of patients every year. Our products are used primarily in
orthopedics, neurosurgery and general surgery. Headquartered in Plainsboro, New
Jersey, Integra has research and manufacturing facilities throughout the world.
For more information, visit www.Integra-LS.com.

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve risks,
uncertainties and reflect the Company's judgment as of the date of this release.
Forward-looking statements include, but are not limited to, statements
concerning future financial performance, including projections for revenues,
GAAP and adjusted net income, GAAP and adjusted earnings per diluted share,
stock-based compensation, non-GAAP adjustments such as acquisition-related
charges, non-cash interest expense related to the application of FSP APB 14-1,
and income tax expense (benefit) related to non-GAAP adjustments, and adjusted
EBITDA. Such forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from predicted or expected
results. Such risks and uncertainties include, but are not limited to: the
Company's ability to maintain relationships with customers of acquired entities;
physicians' willingness to adopt and third-party payors' willingness to provide
reimbursement for the Company's recently launched and planned products;
initiatives launched by the Company's competitors; the Company's ability to
secure regulatory approval for products in development; fluctuations in hospital
spending for capital equipment; the Company's ability to comply with and obtain
approvals for products of human origin and comply with recently enacted
regulations regarding products containing materials derived from animal sources;
difficulties in controlling expenses, including costs of legal compliance
matters or internal controls review, improvement and remediation; the impact of
changes in management or staff levels; the Company's ability to integrate
acquired businesses; the Company's ability to leverage its existing selling
organizations and administrative infrastructure; the Company's ability to
increase product sales and gross margins, and control non-product costs; the
amount and timing of acquisition and integration related costs; the geographic
distribution of where the Company generates its taxable income; the effect of
legislation effecting healthcare reform in the United States; the timing and
amount of share-based awards granted to employees; fluctuations in foreign
currency exchange rates; the amount of our convertible notes outstanding, and
the economic, competitive, governmental, technological and other risk factors
and uncertainties identified under the heading "Risk Factors" included in Item
1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2008
and information contained in subsequent filings with the Securities and Exchange
Commission. These forward-looking statements are made only as of the date
hereof, and the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.

Discussion of Adjusted Financial Measures

In addition to our GAAP results, we provide adjusted revenues, adjusted earnings
before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA
excluding stock-based compensation, adjusted net income, adjusted net income
excluding intangible asset amortization, adjusted earnings per diluted share and
adjusted earnings per diluted share excluding intangible asset amortization.
Adjusted revenues consist of growth in total revenues excluding the effects of
currency exchange rates. The various measures of adjusted EBITDA consist of GAAP
net income (loss), excluding: (i) income taxes, (ii) other income (expense),
net, (iii) depreciation and amortization, (iv) interest income and expense, (v)
those operating expenses also excluded from adjusted net income and, as
appropriate (vi) stock-based compensation expense. The various measures of
adjusted net income consist of GAAP net income (loss), excluding: (i)
acquisition-related charges; (ii) facility consolidation, manufacturing and
distribution transfer and system integration charges; (iii) certain employee
termination and related costs; (iv) charges associated with discontinued or
withdrawn product lines; (v) charges related to restructuring our European
subsidiaries; (vi) charges or gains related to litigation matters or disputes;
(vii) intangible asset impairment charges; (viii) incremental professional and
bank fees related to (a) the delayed filing of financial statements and (b)
waivers or possibility of obtaining waivers under our revolving credit facility;
(ix) charges recorded in connection with terminating defined benefit pension
plans; (x) charges relating to the grant of restricted stock units in connection
with the extension of the term of the CEO's employment agreement; (xi) loss/gain
related to the early extinguishment of convertible notes; (xii) non-cash
interest expense related to the application of FSP APB 14-1; (xiii) the income
tax expense/benefit related to these adjustments; (xiv) quarterly adjustments to
income tax expense/benefit related to the cumulative impact of changes in
estimated tax rates and certain infrequently occurring items; (xv) income tax
expenses or gains related to restructuring our European subsidiaries; and, as
appropriate, (xvi) intangible asset amortization expense. Adjusted net income
attributable to diluted shares is calculated by multiplying adjusted net income
by the diluted share percentage. The various adjusted earnings per diluted share
measures are calculated by dividing the applicable adjusted net income
attributable to diluted shares by diluted weighted average shares outstanding.
Reconciliations of GAAP revenues to adjusted revenues for the quarter ended
September 30, 2009; GAAP net income (loss) to adjusted EBITDA, adjusted EBITDA
excluding stock-based compensation, adjusted net income and adjusted net income
excluding intangible asset amortization; and GAAP earnings (loss) per diluted
share to adjusted earnings per diluted share and adjusted earnings per diluted
share excluding intangible asset amortization for the quarters ended September
30, 2009 and 2008 appear in the financial tables in this release.

Integra believes that the presentation of adjusted revenues and the various
adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share
measures provides important supplemental information to management and investors
regarding financial and business trends relating to the Company's financial
condition and results of operations. For further information regarding why
Integra believes that these non-GAAP financial measures provide useful
information to investors, the specific manner in which management uses these
measures, and some of the limitations associated with the use of these measures,
please refer to the Company's Current Report on Form 8-K regarding this earnings
press release filed today with the Securities and Exchange Commission. This
Current Report on Form 8-K is available on the SEC's website at www.sec.gov or
on our website at www.Integra-LS.com.

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

(In thousands, except per share amounts)
Three Months Ended
September 30,
------------------
2009 2008
------------------
TOTAL REVENUES $172,286 $167,028

COSTS AND EXPENSES
Cost of product revenues 63,021 64,317
Research and development 11,525 34,718
Selling, general and administrative 69,915 87,660
Intangible asset amortization 4,005 3,224
------------------

Total costs and expenses 148,466 189,919

Operating income (loss) 23,820 (22,891)

Interest income 197 399
Interest expense (5,493) (6,955)
Other income (expense), net (380) (409)
------------------

Income (loss) before income taxes 18,144 (29,856)

Income tax expense (benefit) 3,712 (13,001)
------------------

Net income (loss) 14,432 (16,855)

Diluted share percentage 99.3% 100.0%
------------------
Net income (loss) attributable to diluted
shares $ 14,330 ($16,855)

Diluted net income (loss) per share $ 0.49 ($ 0.60)
==================

Weighted average common shares
outstanding for diluted net
income (loss) per share 29,400 28,123

Listed below are the items included in GAAP revenues and GAAP net
income (loss) that management excludes in computing the adjusted
financial measures referred to in the text of this press release and
further described under Discussion of Adjusted Financial Measures.

A. Growth in total revenues excluding the effects of currency
exchange rates

(In thousands)
Three Months Ended
September 30,
----------------------------
2009 2008 Change
----------------------------
Integra Orthopedics $ 64,135 $ 53,777 19%
Integra NeuroSciences $ 67,228 $ 68,086 -1%
Integra Medical Instruments $ 40,923 $ 45,165 -9%
----------------------------
Net Sales $172,286 $167,028 3%

Impact of changes in
currency exchange rates $ 1,740 --
----------------------------
Growth in total revenues
excluding the effects of
currency exchange rates $174,026 $167,028 4%
============================

B. Items included in GAAP net income(loss)

(In thousands)
Three Months Ended
September 30,
------------------
2009 2008
------------------

Acquisition-related charges (a) $ 1,035 $ 26,584

Intangible asset impairment charges (b) 1,519 --

Charges associated with discontinued or withdrawn
product lines (c) -- 1,207

Facility consolidation, manufacturing and
distribution transfer and
system integration charges (d) 96 238

Charge related to grant of restricted stock units
in connection with the extension of the term of
the CEO's employment agreement (e) -- 18,356

Litigation settlement (gain) (f) (253) --

Loss (gain) related to early extinguishment of
convertible notes (g) 207 --

Non-cash interest expense related to the
implementation of FSP APB 14-1 (h) 2,335 2,706

Income tax expense related to above adjustments,
quarterly adjustments to income tax expense
related to the cumulative impact of changes
in estimated tax rates and certain infrequently
occurring items that affected the reported tax
rate (3,790) (18,965)

Stock-based compensation expense* 3,791 3,291

Depreciation expense 3,645 3,410

Intangible asset amortization expense** 4,809 4,490

(a) Q3 2009 - $641 recorded in cost of product revenues, $276
recorded in research and development, $118 recorded in selling
general and administrative;
Q3 2008 - $25,240 recorded in research and development, $1,283
recorded in cost of product revenues, $61 in selling general
and administrative.
(b) Q3 2009 - $608 recorded in amortization expense, $911 recorded
in cost of product revenues.
(c) Q3 2008 - all recorded in cost of product revenues.
(d) All recorded in cost of product revenues.
(e) Q3 2008 - all recorded in selling general and administrative.
(f) Q3 2009 - all recorded in other expense (income).
(g) Q3 2009 - all recorded in other expense (income).
(h) All recorded in interest expense.

* Q3 2008 - This amount excludes the stock-based compensation
expense included in item (e) above.

** Q3 2009 - This amount excludes $1,519 of intangible asset
amortization expense included in item (b) above.

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME
(LOSS) TO ADJUSTED EBITDA AND ADJUSTED EBITDA EXCLUDING
STOCK BASED COMPENSATION
(UNAUDITED)

(In thousands)
Three Months Ended
September 30,
------------------
2009 2008
------------------

GAAP net income (loss) $ 14,432 $(16,855)
Non-GAAP adjustments:

Depreciation and intangible asset
amortization expense 8,454 7,900

Other (income) expense, net 380 409

Interest (income) expense, net 5,296 6,556

Income tax expense (benefit) 3,712 (13,001)

Acquisition-related charges 1,035 26,584

Intangible asset impairment charges 1,519 --

Charges associated with discontinued
or withdrawn product lines -- 1,207

Facility consolidation, manufacturing
and distribution transfer and system
integration charges 96 238

Charge related to grant of restricted
stock units in connection with the
extension of the term of
the CEO's employment agreement -- 18,356
------------------

Total of non-GAAP adjustments 20,492 48,249
------------------

Adjusted EBITDA $ 34,924 $ 31,394

FAS 123R Stock-based compensation 3,791 3,291
------------------

Adjusted EBITDA excluding stock-based
compensation $ 38,715 $ 34,685
==================

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME (LOSS)
TO MEASURES OF ADJUSTED NET INCOME AND ADJUSTED
EARNINGS PER SHARE
(UNAUDITED)

(In thousands, except per share amounts)
Three Months Ended
September 30,
------------------
2009 2008
------------------

GAAP net income (loss) $ 14,432 $(16,855)
Non-GAAP adjustments:

Acquisition-related charges 1,035 26,584

Intangible asset impairment charges 1,519 --

Charges associated with discontinued or withdrawn
product lines -- 1,207

Facility consolidation, manufacturing and
distribution transfer and system integration
charges 96 238

Charge related to grant of restricted stock units
in connection with the extension of the term of
the CEO's employment agreement -- 18,356

Litigation settlement (gain) (253) --

Loss (gain) related to early extinguishment of
convertible notes 207 --

Non-cash interest expense related to the
application of FSP APB 14-1 2,335 2,706

Income tax expense related to above adjustments,
quarterly adjustments to income tax expense
related to the cumulative impact of changes
in estimated tax rates and certain infrequently
occurring items that affected the reported tax
rate (3,790) (18,965)
------------------

Total of non-GAAP adjustments 1,149 30,126

Adjusted net income $ 15,581 $ 13,271

Diluted share percentage 99.3% 98.1%
------------------
Adjusted net income attributable to diluted shares $ 15,465 $ 13,020

Adjusted diluted net income per share $ 0.53 $ 0.45
==================

Weighted average common shares outstanding for
diluted net income per share 29,400 28,701

Intangible asset amortization expense 4,809 4,490

Income tax expense related to
amortization expense (1,556) (1,410)

Adjusted net income, excluding intangible
asset amortization 18,834 16,351

Adjusted EPS, excluding intangible asset
amortization $ 0.64 $ 0.56
==================

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED BALANCE SHEET DATA
(UNAUDITED)

(In thousands)
-----------------------------
September 30, December 31,
2009 2008
-----------------------------

Cash and cash equivalents $106,747 $183,546
Accounts receivable, net 101,379 112,417
Inventory, net 140,541 146,103

Bank line of credit 160,000 260,000
Convertible securities 241,453 299,480

Stockholders' equity 430,422 372,309

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GUIDANCE

(In thousands, except per share amounts)
Projected Year
Ended
December 31, 2009
------------------
Low High
------------------
GAAP net income $ 46,880 $ 52,880

Non-GAAP adjustments:

Acquisition-related charges 5,170 5,170

Employee termination and related costs 850 850

Charges associated with discontinued or withdrawn
product lines 250 250

Facility consolidation, manufacturing
and distribution transfer, and
system integration charges 580 580

Incremental professional and bank fees related
to (a) the delayed filing of financial statements
and (b) waivers or possibility of obtaining
waivers under our revolving credit facility 350 350

Charges related to restructuring
European subsidiaries 1,880 1,880

Intangible asset impairment charges 1,520 1,520

Litigation settlements (gain) (250) (250)

Loss (gain) related to early extinguishment
of convertible notes (910) (910)

Non-cash interest expense related to
the application of FSP APB 14-1 10,080 10,080

Income tax expense related
to above adjustments and certain
infrequently occurring items (7,400) (7,400)
------------------

Total of non-GAAP adjustments 12,120 12,120
------------------

Adjusted net income $ 59,000 $ 65,000

GAAP diluted net income per share $ 1.59 $ 1.79

Non-GAAP adjustments detailed above
(per share) $ 0.41 $ 0.41

Adjusted diluted net income per share $ 2.00 $ 2.20
==================

Weighted average common shares
outstanding for diluted net
income per share 29,300 29,300
IART-F

-0-
CONTACT: Integra LifeSciences Holdings Corporation
John B. Henneman, III, Executive Vice President,
Finance and Administration, and Chief Financial Officer
(609) 275-0500
jhenneman@Integra-LS.com
Investor Relations:
Angela Steinway
(609) 936-2268
Angela.Steinway@Integra-LS.com