Interventional Spine, Inc. Completes $24 Million Financing

IRVINE, Calif.--(BUSINESS WIRE)--Interventional Spine, Inc. today announced that the Company has closed its Series C financing, raising a total of $24 million. The financing was completed with a group of major venture capital firms in the medical arena. The lead investor in this financing was Ascension Health Ventures, LLC. Other investors were Wexford Capital LLC, HBM BioVentures, Rock Creek Partners and affiliates, The MedFocus Fund, LLC, and a group of current investors.

Interventional Spine, Inc. plans to utilize the proceeds of this financing to complete the product launch of a number of products which have received market clearance. In addition, The Company plans to build a robust distribution network to commercialize its spinal product portfolio and seek additional complementary orthopedic devices to grow the Company’s percutaneous spinal product franchise.

“This financing will provide us with additional resources to expand our sales and marketing program and to capitalize on these exciting market opportunities as we move forward toward our goal of becoming the first spine company devoted to truly percutaneous intervention for the treatment of a broad range of spinal disorders,” said Walter A. Cuevas, Interventional Spine, Inc.’s Chief Executive Officer.

Percudyn™ System

The Company successfully launched its Percudyn™ System to the European market at the Spine Arthroplasty Society in Berlin, Germany in May 2007. With this launch, Interventional Spine’s Percudyn™ System becomes the world’s only truly percutaneous extension limiting device for the treatment of:

• Mild to moderate Degenerative Disc Disease (DDD) of the lumbar spine
• Neurogenic intermittent claudication (NIC) due to lumbar spinal stenosis
• Spinal Stenosis
• Spondylolisthesis
• Baastrup’s syndrome
• Axial load inducing back pain
• Contained herniated nucleus pulposus (HNP)
• Adjacent level support as an adjunct to fusion therapy

Percudyn™ has been engineered to complement the features of Interventional Spine’s Teleport® Tissue Retractor, another proprietary Company technology, and is an integral part of a percutaneous implant methodology that has been designed and qualified to advance the current clinical state of the art for the widest possible number of patients.

The Percudyn™ System will undergo a Pre-Market Approval (“PMA”) process with the FDA. The Company plans to submit an Investigation Device Exemption (“IDE”) to the FDA in the second quarter of 2007.

PERPOS™ PLS System

The Perpos™ PLS System with its BONE-LOK® PLS Implant utilizes the CLASP® custom compression fit technology to achieve facet-to-pedicle fixation, with percutaneous access through the Teleport® Tissue Retractors. Interventional Spine is the only company in the spine market that offers a percutaneous method of providing spinal stabilization as a component of spinal fusion procedures.

The Perpos™ PLS System with its BONE-LOK™ PLS Implant has been granted FDA 510(k) clearance, and has begun generating 2007 revenues for the Company in the United States.

Interventional Spine, Inc. is a privately held company based in Irvine, California that designs, develops, and markets patented implantable devices for the spine that can be deployed via percutaneous techniques, supported by the Company’s unique product introduction systems, providing benefits to patients, surgeons, and hospitals. More information on the Company and its products can be found at: www.i-spineinc.com.