Devices Orthopaedic Neurosurgery Licensing

 News Release - July 6, 2006

Alphatec Holdings, Inc. Announces Exclusive Licensing Agreement for Dynamic Cervical Plate System

CARLSBAD, Calif., July 6 (HSMN NewsFeed) -- Alphatec Holdings, Inc. (Nasdaq: ATEC ), a medical device company that provides customized spinal products and a broad suite of spine fusion solutions, announced today that it has signed an exclusive licensing agreement with Hansen A. Yuan, M.D. for commercial development of Dr. Yuan's patented technology for dynamic cervical plating systems. The Company has begun development and anticipates the introduction of a commercial product in 2007.

Ronald G. Hiscock, President and Chief Executive Officer of Alphatec noted, "The execution of this agreement presents an exciting opportunity for our company. We feel that many surgeons will prefer the translational motion that a dynamic plating system such as this will allow in multi-level cervical fusion procedures. We will continue to focus on providing alternatives and unique approaches for cervical fusion surgery."

Hiscock added, "This new agreement demonstrates our commitment to bringing new technologies and providing a full breadth of products to our surgeon customers. Although we do not anticipate generating revenue from a dynamic cervical plate until 2007, it exemplifies our focus on aggressively broadening our portfolio of spine fusion products. This is the third new licensing/private label agreement that Alphatec has signed over the past four months. Our goal for each of these is to provide complementary revenue sources by either increasing revenue per surgery or the number of surgeries being performed."

About Alphatec

Alphatec is a medical device company focused on the design, development, manufacturing and marketing of products for the surgical treatment of spine disorders. Alphatec's principal product offering is primarily focused on the estimated $2.2 billion U.S. spine fusion market through its wholly-owned subsidiary, Alphatec Spine, Inc., and includes a variety of spinal implant products and systems comprised of components such as spine screws, spinal spacers, and plates that offer multiple solutions to address patients' needs. In addition to Alphatec's U.S. presence, it also participates in the Japanese spine fusion and orthopedic trauma markets through its subsidiary, Alphatec Pacific, Inc. Our mission is to be a value based leader in the spinal market by providing unmatched service to and taking scientific direction from our physician customers. We do so through our unique in-house manufacturing facility in Carlsbad, California that allows us to respond quickly and to customize innovative products needed for spine fusion surgery.

Forward-Looking Statements

This press release may contain forward-looking statements that involve risks and uncertainty, including statements that Alphatec will seek to launch a commercial dynamic plating system in 2007, that the license agreement will allow Alphatec to develop unique approaches for dynamic plating systems used in cervical fusion surgery, that Alphatec anticipates generating revenue from a dynamic cervical plate in 2007, and that each of the three licensing/private label agreements that Alphatec has signed in the past four months will provide complementary revenues by either increasing our revenue per surgery or the number of surgeries being performed. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Alphatec cautions investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including, but not limited to, the following: Alphatec's ability to develop and expand its spine fusion business in the United States and Japan, Alphatec's ability to expand and maintain a successful sales and marketing organization, continuation of favorable third party payor reimbursement for procedures performed using our products, unanticipated expenses or liabilities or other adverse events affecting cash flow or Alphatec's ability to achieve profitability, uncertainty of additional funding, uncertainty of success in developing any new products, failure to successfully introduce and develop new products, including products related to the dynamic cervical plate license agreement and the other license agreements, failure to obtain FDA clearance or approval for particular devices, Alphatec's ability to compete with other competing products and with emerging new technologies within and outside of spinal fusion, product liability exposure and patent infringement claims. Please refer to the risks detailed in Alphatec's Form S-1 on file with the SEC, as well as the risks detailed from time to time in Alphatec's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.

Source: Alphatec Holdings

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