TranS1 Inc. Announces Tentative Settlement With Office of Inspector General

TranS1 Inc. Announces Tentative Settlement With Office of Inspector General

WILMINGTON, N.C., Dec. 27, 2012 (GLOBE NEWSWIRE) -- TranS1 Inc. (Nasdaq:TSON),
a medical device company focused on designing, developing and marketing
products to treat degenerative conditions of the spine affecting the lower
lumbar region, today announced that it had reached a tentative agreement in
principle with the U.S. Department of Justice related to the subpoena issued
in October 2011. On December 24, 2012, the Company and the staff of the
Department of Justice tentatively agreed to settle its federal investigation
for $6 million, subject to completion and approval of written settlement
agreements with the Department of Justice and the HHS-OIG, which are expected
to be finalized in the first few months of 2013. The Company admits no
wrongdoing as part of the settlement.

"TranS1 has cooperated fully with this investigation and the proposed
settlement is consistent with our efforts to instill a culture of compliance
throughout the Company," stated Ken Reali, TranS1's President and CEO. "We
believe that resolving this issue and reducing the related financial
uncertainty is in the best interests of the Company and its shareholders."

About TranS1 Inc.

TranS1 is a medical device company focused on designing, developing and
marketing products to treat degenerative conditions of the spine affecting the
lower lumbar region. TranS1 currently markets the AxiaLIF® family of products
for single and multilevel lumbar fusion, the VEO^TM lateral access and
interbody fusion system, and the Vectre^TM posterior fixation system for
lumbar fixation supplemental to AxiaLIF fusion. TranS1 was founded in May 2000
and is headquartered in Wilmington, North Carolina. For more information,
visit www.trans1.com.

Forward-Looking Statements

This press release includes statements relating to our efforts to gain
favorable coverage decisions for our products that are based on our current
beliefs and assumptions. These statements constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934, and are intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. Such statements are subject to risks
and uncertainties that are often difficult to predict, are beyond our control,
and which may cause results to differ materially from expectations. Factors
that could cause our results to differ materially from those described
include, but are not limited to, the pace of adoption of our product
technology by spine surgeons, the outcome of coverage and reimbursement
decisions by the government and third party payors, the success of our
continuing product development efforts, the effect on our business of existing
and new regulatory requirements, uncertainty surrounding the outcome of the
matters relating to the subpoena issued to the Company by the OIG, stockholder
class action lawsuits, and other economic and competitive factors. For a
discussion of the most significant risks and uncertainties associated with
TranS1's business, please review the Company's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the year
ended December 31, 2011. You are cautioned not to place undue reliance on
these forward looking statements, which are based on TranS1's expectations as
of the date of this press release and speak only as of the date of this press
release. We undertake no obligation to publicly update or revise any forward
looking statement, whether as a result of new information, future events or
otherwise.

CONTACT: TranS1 Inc.
         Investors:
         Joe Slattery, Executive Vice President and
         Chief Financial Officer
         910-332-1700
        
         Westwicke Partners
         Mark Klausner
         443-213-0501
         trans1@westwicke.com
 
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