ATEC Alphatec Holdings Inc

CARLSBAD, Calif., June 30 /PRNewswire-FirstCall/ -- Alphatec Holdings, Inc. (NASDAQ:ATEC), a medical device company that provides customized products and a broad suite of spine fusion solutions, announced today that it has executed a settlement agreement with Benchmark Medical Holdings, Inc. that relieves both parties of all obligations related to prior severance and promissory note agreements between Benchmark and certain Alphatec employees who were previously employees of Benchmark. The agreement also settles litigation brought by Alphatec and Benchmark against one another related to these matters. Stephen T. D. Dixon, Vice President and Chief Financial Officer noted, "We are pleased to have reached this settlement with Benchmark in a manner that suits both parties and eliminates the associated on-going legal costs." Alphatec has also learned that on June 26, 2006, Biedermann Motech GmbH and Depuy Spine, Inc. filed suit for patent infringement against a number of companies including Alphatec. The complaint relates to U.S. Patent No. 5,207,678. Biedermann Motech owns the patent and DePuy is the exclusive licensee of the patent. Alphatec does not believe that any of its products infringe on this patent and intends to vigorously defend itself against this complaint. 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. Alphatec Spine, Inc., our operating subsidiary, was originally founded in 1990 to manufacture and sell orthopedic trauma products. In 2003, Alphatec began to additionally develop and market spine products and has received numerous product clearances from the FDA for these products. Since 2005, we have focused exclusively in the United States within the spine fusion marketplace and have developed a broad suite of spine fusion products that address most of the needs of the market. Forward Looking Statements The statements herein regarding Alphatec contain forward-looking statements that involve risks and uncertainty. Future events and Alphatec's actual results could differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, 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, uncertainty of success in developing any new products, failure to successfully introduce new products related to 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, and 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. Alphatec does not assume any obligation to update any forward-looking statements or other information contained in this document. DATASOURCE: Alphatec Holdings, Inc. CONTACT: Investors, Matt Clawson of Allen & Caron, Inc., +1-949-474-4300, , for Alphatec Holdings, Inc.; or Stephen T. D. Dixon, Vice President and CFO of Alphatec Holdings, Inc., +1-760-431-9286

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