Water Street Completes Investment in RTI Biologics Inc.

           Water Street Completes Investment in RTI Biologics Inc.

Health Care Firm's Investment Supports RTI with Strategic Acquisition; Two
Partners Appointed to RTI Board

PR Newswire

CHICAGO, July 16, 2013

CHICAGO, July 16, 2013 /PRNewswire/ --Water Street Healthcare Partners, a
strategic private equity firm focused exclusively on the health care industry,
announced today that it has completed an investment in RTI Biologics Inc.
(RTI). Headquartered in Alachua, Fla., RTI specializes in orthopedic and
other biologic implants. Water Street has invested a $50 million private
placement of convertible preferred equity to support RTI with acquiring
Pioneer Surgical Technology (Pioneer). The acquisition transforms RTI into
one of the world's leading providers of surgical implants.

As part of the transaction, RTI has appointed two representatives from Water
Street to serve on its board of directors. Curt Selquist, an operating
partner with more than 35 years of health care experience, will serve as a
director. Prior to Water Street, Mr. Selquist was company group chairman of
Johnson & Johnson Medical and Johnson & Johnson Healthcare Systems. Joining
Mr. Selquist on the board is Ned Villers, a partner with Water Street who has
invested in companies specializing in medical products and health care
services since 1999.

"We are excited to partner with Water Street to complete this acquisition, and
to add Curt and Ned's expertise to our board," said Brian K. Hutchison,
president and chief executive officer, RTI. "The Pioneer acquisition puts RTI
in a much stronger position to capitalize on future opportunities in
orthopedics and biologics. Water Street's extensive knowledge and network of
relationships in the medical products sector will benefit our organization as
we further advance our long-term strategic plan."

The Pioneer acquisition expands RTI's portfolio of natural biologic implants
to metal and synthetic devices. It also extends RTI's direct distribution
network to 47 countries and enhances its international footprint. With the
addition of Pioneer's business, RTI employs approximately 1,100 people and
operates facilities in Germany, The Netherlands and the United States.
Together, the companies offer a comprehensive range of surgical implants for
use in orthopedic, spine, trauma and cardiothoracic procedures. The new name
of the company is RTI Surgical Inc.

"Our team is pleased to have played a role in bringing RTI and Pioneer
together to create a market leader in the growing field of biosurgery," said
Mr. Selquist. "We look forward to contributing our years of experience
operating and growing health care businesses to help the board evaluate and
pursue strategies that will maximize RTI's newly expanded products and

RTI is Water Street's most recent partnership with a health care company to
complete a market-leading acquisition. The firm has facilitated numerous
strategic combinations that have built market-leading companies in outpatient
rehabilitation services, patient safety identification solutions and
distribution of specialty medical products. RTI is Water Street's first
private placement in a corporation.

RTI expands Water Street's group of companies specializing in medical
products, distribution, health care services, and pharmaceutical products and
services to 13. Water Street is seeking new opportunities to partner with
health care corporations and middle-market businesses interested in
accelerating growth. Its investments range in size from $50 to $500 million.

About RTI Surgical Inc.

RTI Surgical is a leading global surgical implant company providing surgeons
with safe biologic, metal and synthetic implants. Committed to advancing
science, safety and innovation, RTI's implants are used in sports medicine,
general surgery, spine, orthopedic, trauma and cardiothoracic procedures and
are distributed in more than 47 countries. RTI is headquartered in Alachua,
Fla., and has four manufacturing facilities throughout the U.S. and Europe.
RTI is accredited in the U.S. by the American Association of Tissue Banks and
is a member of AdvaMed.

About Water Street

Water Street is a strategic private equity firm focused exclusively on health
care. The firm has a strong record of building market-leading companies across
key growth sectors in health care. It has worked with some of the world's
leading health care companies on its investments including Gentiva, Johnson &
Johnson, Medtronic and Smith & Nephew. Water Street's team is comprised of
industry executives and private equity professionals with decades of
experience investing in and operating global health care businesses. The firm
is headquartered in Chicago. For more information about Water Street, visit

SOURCE Water Street Healthcare Partners

Website: http://www.waterstreet.com
Contact: KELLY ZITLOW, 847.858.5230, kelly.zitlow@waterstreet.com, or WENDY
CRITES-WACKER, 386.418.8888, wwacker@rtix.com
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