May 17, 2008

Integra LifeSciences Reports 2007 Financial Results and Appointment of Chief Financial Officer

May 17, 2008 (PrimeNewswire via COMTEX News Network) --



     Revenues for the Fourth Quarter Increase 26% to $157.6 Million

            First Quarter Revenues Expected Above Consensus

PLAINSBORO, N.J., May 16, 2008 (PRIME NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today reported its financial results for the fourth quarter and full year ending December 31, 2007 and announced the appointment of John B. Henneman, III as permanent Chief Financial Officer.

Total revenues in the fourth quarter of 2007 were $157.6 million, reflecting an increase of $32.3 million, or 26%, over the fourth quarter of 2006. Revenues from products acquired since the beginning of the fourth quarter of 2006 were $18.1 million for the fourth quarter of 2007. There were no revenues from such acquired products in the fourth quarter of 2006 because the Company did not close any acquisitions during that period.

The Company expects first quarter 2008 revenues to be in excess of the street consensus and at or above the upper end of its previously reported guidance range.

The Company reported GAAP net income of $5.4 million, or $0.19 per diluted share, for the fourth quarter of 2007, compared to GAAP net income of $10.1 million, or $0.34 per diluted share, for the fourth quarter of 2006. GAAP net income in the fourth quarter of 2007 was adversely affected by a $4.6 million in-process research and development charge recorded in connection with the IsoTis acquisition and higher income taxes. GAAP net income in the fourth quarter of 2006 was adversely affected by a $0.3 million in-process research and development charge.

In addition to GAAP results, Integra reports adjusted net income and adjusted earnings per diluted share. A further discussion of these non-GAAP financial measures can be found below, and reconciliations of GAAP net income to adjusted net income and GAAP earnings per diluted share to adjusted earnings per diluted share for the quarters and full years ended December 31, 2007 and 2006 appear in the financial statements attached to this release. Integra's adjusted net income and adjusted earnings per diluted share for these periods are not adjusted for share-based compensation expense associated with FAS 123R.

Adjusted net income for the fourth quarter of 2007, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $15.6 million, or $0.54 per diluted share. In the fourth quarter of 2006 adjusted net income, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $12.5 million, or $0.42 per diluted share.

"Integra posted strong revenue and earnings results. Our business was very strong in the fourth quarter of 2007. We are pleased with the underlying strength of our business and its continued ability to generate double-digit revenue growth," said Stuart Essig, Integra's President and Chief Executive Officer. "Additionally, I am delighted that Jack Henneman has agreed to take on the Chief Financial Officer role on a permanent basis. Jack has done an excellent job during his time as acting Chief Financial Officer in reducing the turnover and recruiting an experienced accounting and finance team. We are impressed by his continued efforts to develop a finance organization that can scale along with the rest of our business."

Operating income for the fourth quarter of 2007 was $15.6 million, including the impact of the $4.6 million in-process research and development charge recorded in connection with the IsoTis acquisition. Integra generated approximately $14.6 million in cash flows from operations in the quarter.

Total revenues for the year ended December 31, 2007 were $550.5 million, reflecting an increase of $131.2 million, or 31%, over 2006. The Company reported GAAP net income of $33.5 million, or $1.13 per diluted share, for the full year 2007, compared to GAAP net income of $29.4 million, or $0.97 per diluted share in 2006. GAAP net income in both 2007 and 2006 was adversely affected by in-process research and development charges of $4.6 million and $5.9 million, respectively. Adjusted net income for the full year 2007, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $47.1 million, or $1.59 per diluted share. Adjusted net income for the full year 2006, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $42.9 million, or $1.38 per diluted share.

Integra presents its revenues in two categories: a) Medical Surgical Equipment and b) Neurosurgical and Orthopedic Implants.

The Company's revenues for the periods were as follows:



                            Three Months       Twelve Months
                            Ended Dec. 31,     Ended Dec. 31,
                           2007      2006      2007      2006
                        --------- --------- --------- ---------
 Revenues:
  ($ in thousands)
 Medical Surgical
  Equipment and other    $95,745   $78,144  $342,923  $252,865
 Neurosurgical and
  Orthopedic Implants    $61,900   $47,250  $207,536  $166,432
                        --------- --------- --------- ---------
    Total Revenues      $157,645  $125,394  $550,459  $419,297

In the Medical Surgical Equipment category, ultrasonic surgical systems, intracranial monitoring, and hand-held surgical instrument product lines led internally generated growth. Sales of product lines acquired after the beginning of the fourth quarter of 2006 contributed $11.0 million of equipment product revenues during the fourth quarter of 2007. There were no such acquired revenues in the fourth quarter of 2006.

In the Neurosurgical and Orthopedic Implants category, internal growth continues to be strong. Sales of dermal repair products, the DuraGen(R) family of products, collagen-based bone growth products, and extremity reconstruction implants led revenue growth. Sales of product lines acquired after the beginning of the fourth quarter of 2006, which consists of the products acquired in the IsoTis transaction, contributed $7.1 million of implant product revenues during the fourth quarter of 2007. There were no such acquired revenues in the fourth quarter of 2006.

Gross margin on total revenues in the fourth quarter of 2007 was 60.4%. "We are pleased to report the third straight quarter of year-over-year gross margin percentage increases," said Jack Henneman, Integra's Executive Vice President, Finance and Administration and Chief Financial Officer. "In the absence of acquisitions, we expect that the faster growth of our higher margin implant products will work to increase our consolidated gross margins."

Cost of goods sold in the fourth quarter of each of 2007 and 2006 included charges for inventory fair value purchase accounting from acquisitions of $2.0 million and $0.6 million, respectively. Cost of goods also included $0.6 million of charges for several discontinued products and $0.1 million net of other restructuring charges in the fourth quarter of 2007 and $0.2 million in the fourth quarter of 2006 for employee termination and related costs associated with European restructuring. These charges reduced the gross margin for the fourth quarter of each of 2007 and 2006 by nearly 2 percentage points and 0.6 percentage points respectively. Integra continues to anticipate gross margins to average between 62% and 63% of revenues for 2008.

Research and development expense was $11.8 million in the fourth quarter of 2007 as compared to $5.2 million in the same period in 2006. Research and development expense in the fourth quarters of each of 2007 and 2006 included $4.6 million and $0.3 million, respectively, of acquired in-process research and development charges. In 2007, Integra increased spending on its regenerative product development programs, including the adhesion barrier clinical trial and DuraGen XS(TM) Dural Regeneration Matrix. We continue to target research and development expenditures at 5.0% of revenues in 2008.

Selling, general and administrative expense increased to $64.9 million in the fourth quarter of 2007, or 41% of revenues, compared to $45.9 million, or 37% of revenues, in the fourth quarter of 2006. Selling, general and administrative expenses in the fourth quarter of 2007 included $1.4 million of incremental professional fees arising from the delayed closing of the 2007 fiscal year. Substantial increases in the size of the Company's selling organizations, particularly for spine and extremity reconstruction, and higher expenses for corporate staff and consulting accounted for most of the increase in selling, general and administrative expense in 2007 over the prior year. Selling, general and administrative expenses as a percentage of revenues is expected to be higher in the first half of 2008 and decrease throughout the year, as the Company continues the integration of IsoTis, moves past the significant legal, banking and consulting fees related to the delayed financial statements, and gains more leverage from its selling organizations. Selling, general and administrative expenses are expected to decrease throughout 2008 to between 38% and 40% of revenues.

Net interest expense increased to $2.7 million for the fourth quarter of 2007.

Integra reported an effective GAAP income tax rate of 66.5% for the fourth quarter of 2007, which included the cumulative impact of certain non-recurring items on the 2007 reported tax rate (such as in-process research and development charge related to the IsoTis acquisition). The effective GAAP income tax rate for the full year 2007 was 44.3%. This unusually high tax rate adversely affected GAAP earnings per share for the quarter and year-ended December 31, 2007. The Company expects its effective income tax rate for the full year 2008 to be between 36% and 39%.

At December 31, 2007, cash totaled $57.3 million, and there were no outstanding borrowings under our $300 million revolving credit facility. In March 2008, the Company's 2-1/2% Contingent Convertible Subordinated Notes (the "March 2008 Notes") matured. Holders who converted their March 2008 Notes prior to maturity received the principal amount in cash and the net appreciation amount of the conversion feature in shares of Integra's common stock. Approximately 768,000 new shares of common stock were issued and $120 million dollars in cash was paid in conjunction with the settlement of the March 2008 Notes. The Company borrowed $120 million under its credit facility to fund these repayments.

During the fourth quarter of 2007, the Company repurchased 500,000 shares of its common stock for an aggregate purchase price of $20.5 million. During full year 2007, we repurchased a total of 2.2 million shares of our common stock for $106.5 million. As of December 31, 2007, there was $54.5 million available for repurchases under our existing share repurchase authorization, which will expire on December 31, 2008.

The Company is updating its quarterly and full year 2008 revenues and earnings per share guidance previously provided on February 29, 2008. These estimates assume foreign currency exchange rates remain unchanged from current rates throughout 2008. In accordance with usual practice, expectations for 2008 financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed.

In 2008, Integra anticipates approximately $3.7 million in acquisition-related charges from the IsoTis and Precise acquisitions. It also anticipates approximately $0.9 million in facility consolidation, manufacturing transfer and system integration charges related to various projects, including the consolidation of the Integra Pain Management business into Salt Lake City, continued transfer of certain regenerative product manufacturing to Puerto Rico and continued global implementation of an Oracle enterprise resource planning system. Finally, the Company anticipates $1.4 million charge for incremental audit, legal and bank fees related to the delayed financial statements.

In the future the Company may record, or expects to record, certain additional revenues, gains, expenses or charges (such as acquisition-related charges, facility consolidation, manufacturing transfer and system integration charges, and certain employee termination and related costs) that it will exclude in the calculation of adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.

Quarterly and full-year revenues and earnings per share expectations are as follows:



                                                           Adjusted
                           Revenues      GAAP Earnings     Earnings
                           Guidance        Per Share       Per Share
       Period           (in millions)      Guidance         Guidance
 --------------------   --------------   -------------   -------------

 First Quarter 2008           *          $0.29 - $0.32   $0.39 - $0.42
 Second Quarter 2008     $159 - $164     $0.43 - $0.46   $0.45 - $0.48
 Third Quarter 2008      $156 - $161     $0.47 - $0.51   $0.48 - $0.52
 Fourth Quarter 2008     $170 - $175     $0.68 - $0.73   $0.68 - $0.73

 2008                         *          $1.87 - $2.02   $2.00 - $2.15


 * Previously reported revenue guidance for the first quarter of 2008,
   on February 29, 2008, was $150 million to $155 million.  The
   Company expects first quarter 2008 revenues to be in excess of the
   street consensus and at or above the upper end of its previously
   reported guidance range.  Previously reported guidance for the full
   year 2008 was $635 million to $655 million. The Company expects to
   update full year 2008 revenue guidance after reporting the first
   quarter.

On a quarterly basis, the Company expects to incur approximately $3.9 million, or $0.09 per share, of share-based compensation expense associated with FAS 123R in 2008. This non-cash compensation expense is reflected in both the GAAP and adjusted earnings per share guidance for 2008 provided above.

As previously reported in the Company's periodic filings, Integra identified material weaknesses in its internal control over financial reporting related to (1) the complement of its personnel; (2) the accounts reconciliation; (3) the intercompany transactions; (4) the income tax accounts; and (5) the configuration, segregation of duties and access to key financial reporting applications. Remediation of these weaknesses had not yet been completed, and therefore these material weaknesses continued to exist as of December 31, 2007. While the Company has taken steps to remediate these material weaknesses and to strengthen its internal control processes and procedures, these material weaknesses delayed the review and approval of certain accounts, including without limitation, inventory, accounts receivable, accounts payable and intercompany accounts related to certain of its locations, its tax provision and deferred tax balance sheet accounts for the fourth quarter and full year 2007.

As a result of the ongoing material weaknesses and resources required to prepare its Annual Report on Form 10-K, the Company does not anticipate reporting its first quarter 2008 earnings results prior to the last week of May 2008. The Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 is anticipated to be filed as soon as practicable thereafter.

The Company has scheduled a conference call for 9:00 AM EDT Monday, May 19, 2008, to discuss the results for the fourth quarter and full year 2007, forward-looking financial guidance, and the underlying business. The call is open to all listeners and will be followed by a question and answer session. Access to the live call is available by dialing 913-312-0863 or through a listen-only webcast via a link provided on the Investor Relations homepage of Integra's website at http://www.Integra-LS.com. A replay of the conference call will be accessible starting one hour following the live event. Access to the replay will be available through May 26, 2008 by dialing 719-457-0820 (PIN 4115546) or through the webcast accessible on our home page.

Integra LifeSciences Holdings Corporation, a world leader in regenerative medicine, is dedicated to improving the quality of life for patients through the development, manufacturing, and marketing of cost-effective surgical implants and medical instruments. Our products, used primarily in neurosurgery, extremity reconstruction, orthopedics and general surgery, are used to treat millions of patients every year. Integra's headquarters are in Plainsboro, New Jersey, and we have research and manufacturing facilities throughout the world. Please visit our website at http://www.Integra-LS.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and reflect the Company's judgment as of the date of this release. Forward-looking statements include, but are not limited to, statements concerning future financial performance, including projections for revenues, gross margin on product revenues, selling, general and administrative expenses, GAAP and adjusted net income, GAAP and adjusted earnings per diluted share, acquisition and integration related costs and non-cash compensation expense associated with FAS 123R; the timing of the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, and the Company's ability to remediate its material weaknesses. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Such risks and uncertainties include, but are not limited to, the Company's inability to design or improve internal controls to address the disclosed material weaknesses; the impact upon operations of legal compliance matters or internal controls review, improvement and remediation; difficulties in controlling expenses, including costs of legal compliance matters or internal controls review, improvement and remediation; the impact of changes in management or staff levels; the Company's ability to maintain relationships with customers of acquired entities; physicians' willingness to adopt, and third-party payors' willingness to provide reimbursement for, the Company's recently launched and planned products; initiatives launched by the Company's competitors; the Company's ability to secure regulatory approval for products in development; the Company's ability to comply with and obtain approvals for products of human origin and comply with recently enacted regulations regarding products containing materials derived from animal sources; the Company's ability to integrate acquired businesses; the Company's ability to leverage its existing selling organizations and administrative infrastructure; the Company's ability to increase product sales and gross margins, and control non-product costs; the amount and timing of acquisition and integration related costs; the timing and amount of share-based awards granted to employees; and the economic, competitive, governmental, technological and other risk factors and uncertainties identified under the heading "Risk Factors" included in Item 1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2007 and information contained in subsequent filings with the Securities and Exchange Commission.

Discussion of Adjusted Financial Measures

Adjusted net income consists of net income excluding (i) acquisition-related charges, (ii) facility consolidation, manufacturing and distribution transfer and system integration charges, (iii) certain employee termination and related costs, (iv) charges associated with discontinued or withdrawn product lines, (v) intangible assets impairment charges, (vi) charges related to restructuring our legal entities in Europe, (vii) charges or gains related to litigation matters or disputes, (viii) charges incurred in connection with the exchange offer of convertible notes and the termination of a related interest rate swap agreement, (ix) incremental audit, legal and/or bank fees related to the delayed closing of financial statements, and (x) the income tax expense/benefit related to these adjustments and the cumulative impact of changes in income tax rates and certain other infrequently occurring items that affected the reported income tax rate for the quarter and year-to-date period. Adjusted earnings per diluted share are calculated by dividing adjusted net income for earnings per diluted share by diluted weighted average shares outstanding.

Integra believes that the presentation of adjusted net income and adjusted earnings per diluted share provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. For further information regarding why Integra believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's Current Report on Form 8-K regarding this earnings press release filed today with the Securities and Exchange Commission. This Current Report on Form 8-K is available on the SEC's website at www.sec.gov or on our website at http://www.Integra-LS.com.



                 INTEGRA LIFESCIENCES HOLDINGS CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (UNAUDITED)

 (In thousands, except per share amounts)
                             Three Months Ended   Twelve Months Ended
                                December 31,         December 31,
                              2007       2006       2007       2006
                            -----------------------------------------

 TOTAL REVENUES             $157,645   $125,394   $550,459   $419,297

 COSTS AND EXPENSES
 Cost of product revenues     62,426     51,445    214,674    168,314
 Research and development     11,813      5,214     30,658     25,732
 Selling, general and
  administrative              64,861     45,936    225,187    157,706
 Intangible asset
  amortization                 2,991      2,651     12,652      8,801

  Total costs and expenses   142,091    105,246    483,171    360,553

 Operating income             15,554     20,148     67,288     58,744

 Interest income               1,174        201      3,552      2,194
 Interest expense             (3,853)    (2,503)   (13,749)   (10,620)
 Other income (expense), net   3,200       (178)     2,971     (2,010)

 Income before income taxes   16,075     17,668     60,062     48,308

 Income tax expense           10,693      7,537     26,591     18,901

 Net income                    5,382     10,131     33,471     29,407

 Add back of after tax
  interest expense                 2          2         10      2,254

 Net income for diluted
  earnings per share          $5,384    $10,133    $33,481    $31,661

 Diluted net income per
  share                        $0.19      $0.34      $1.13      $0.97

 Weighted average common
  shares outstanding for
  diluted net income per
  share                       28,842     30,084     29,578     32,747

Listed below are the items included in net income that management excludes in computing the adjusted financial measures referred to in the text of this press release and further described under Discussion of Adjusted Financial Measures.



                                      Three Months      Twelve Months
                                          Ended             Ended
                                       December 31,      December 31,
                                     ---------------------------------
                                      2007     2006     2007     2006
                                     ---------------------------------

 Acquisition-related charges          6,831      903    9,701   12,093

 Charges associated with convertible
  debt exchange offer                    --       --       --    1,879

 Charges associated with termination
  of interest rate swap                  --       --       --    1,425

 Employee termination and
  related costs                        (131)     693     (160)   1,114

 Facility consolidation, manufacturing
  and distribution transfer
  and system integration charges        328       --    1,106      717

 Charges associated with
  discontinued or withdrawn
  product lines                         550       --    2,006       --

 Charges related to restructuring
  European legal Entities                --       --      335       --

 Charges related to litigation
  matters or disputes                    --       --      138       --

 Intangible asset impairments            --       --    1,014       --

 Incremental audit, legal and/or
  bank fees related to the delayed
  closing of financial statements     1,389       --    1,389       --


 Income tax expense (benefit)
  related to above adjustments       (1,504)    (469)  (3,903)  (3,706)


 Quarterly adjustment to income tax
  expense related to the cumulative
  impact of the changes in tax
  rates and certain infrequently
  occurring items (1)                 2,756    1,246    1,996       --


 (1) The above $2,756 and $1,996 reductions to income tax expense were
 made to reflect what the income tax expense would have been based upon
 a 37.7% effective income tax rate for 2007. The above $1,246 reduction
 to income tax expense was made to reflect what the income tax expense
 would have been based upon a 34% effective income tax rate for 2006.
 The adjusted effective income tax rate is the effective income tax
 rate that would have been reported after excluding certain
 infrequently occurring items from the reported tax rate.


                INTEGRA LIFESCIENCES HOLDINGS CORPORATION
           RECONCILIATION OF NON-GAAP ADJUSTMENTS - HISTORICAL
                             (UNAUDITED)

 (In thousands, except per share amounts)

                                                      Twelve Months
                                Three Months Ended        Ended
                                   December 31,        December 31,
                                  2007      2006      2007      2006

 GAAP net income                 $5,382   $10,131   $33,471   $29,407

 Non-GAAP adjustments:

  Acquisition-related
   charges (a)                    6,831       903     9,701    12,093

  Charges associated with
   convertible debt exchange
   offer (b)                         --        --        --     1,879

  Charges associated with
   termination of interest rate
   swap (c)                          --        --        --     1,425

  Employee termination and
   related costs (d)               (131)      693      (160)    1,114

 Charges associated with
  discontinued or withdrawn
  product lines (e)                 550        --     2,006        --

 Charges related to
  restructuring European legal
  entities (f)                       --        --       335        --

 Facility consolidation,
  manufacturing and
  distribution transfer and
  system integration charges (g)    328        --     1,106       717

 Charges related to litigation
  matters or disputes (h)            --        --       138        --

 Intangible asset impairments
  (i)                                --        --     1,014        --

 Incremental audit, legal and/
  or bank fees related to the
  delayed closing of financial
  statements (j)                  1,389        --     1,389        --

 Income tax expense (benefit)
  related to above adjustments   (1,504)     (469)   (3,903)   (3,706)

 Quarterly adjustment to income
  tax expense related to
  the cumulative impact of the
  changes in tax rates and
  certain infrequently
  occurring items                 2,756     1,246     1,996        --

   Total of non-GAAP
    adjustments                  10,219     2,373    13,622    13,522

 Adjusted net income            $15,601   $12,504   $47,093   $42,929
 Add back of after tax interest
  expense (k)                         2         2        10     2,254
 Adjusted net income for
  diluted earnings per share    $15,603   $12,506   $47,103   $45,183

 Weighted average common shares
  outstanding for diluted net
  income per share               28,842    30,084    29,578    32,747


 GAAP diluted net income per
  share                           $0.19     $0.34     $1.13     $0.97
  Non-GAAP adjustments detailed
   above (per share)              $0.35     $0.08     $0.46     $0.41
 Adjusted diluted net income
  per share                       $0.54     $0.42     $1.59     $1.38


 (a) Q4 2007 - $2,042 recorded in cost of product revenues, $4,600
     recorded in research and development. $189 recorded in selling
     general and administrative;
     Q4 2006 - $628 recorded in cost of product revenues, $275
     recorded in research and development.
     FY 2007 - $4,238 recorded in cost of product revenues, $4,600
     recorded in research and development. $189 recorded in selling
     general and administrative, $674 recorded in amortization of
     intangibles
     FY 2006 - $4,640 recorded in cost of product revenues, $7,453
     recorded in research and development
 (b) FY 2006 - $419 recorded in selling general and administrative,
     $1,460 recorded in interest expense
 (c) FY 2006 - all recorded in other income (expense)
 (d) Q4 2007 - $ 18 recorded in selling general and administrative,
     Negative $149 recorded in cost of product revenues;
     Q4 2006 - $ 532 recorded in selling general and administrative,
     $161 recorded in cost of product revenues
     FY 2007 - $6 recorded in cost of product revenues, Negative $166
     recorded in selling general and administrative.
     FY 2006 - $373 recorded in cost of product revenues, $39 recorded
     in research and development, $702 recorded in selling general and
     administrative
 (e) Q4 2007 - all recorded in cost of product revenues
     FY 2007 - $1,656 recorded in cost of product revenues, $350
     recorded in total revenues.
 (f) FY 2007 - all recorded in selling general and administrative
 (g) Q4 2007 - $ 21 recorded in selling general and administrative,
     $307 recorded in cost of product revenues
     FY 2007 - $765 recorded in cost of product revenues, $341
     recorded in selling general and administrative.
     FY 2006 - all recorded in cost of product revenues
 (h) FY 2007 - all recorded in selling general and administrative
 (i) FY 2007 - $848 recorded in cost of product revenues, $166
     recorded in amortization of intangibles
 (j) all in selling general and administrative


 Condensed Balance Sheet Data (in thousands):

                                           December 31,   December 31,
                                              2007           2006
                                              ----           ----
 Cash and marketable securities, including
  non-current portion                       $57,339         $22,697
 Accounts receivable, net                   103,539          85,018
 Inventory, net                             144,535          94,387

 Bank line of credit                             --         100,000
 Convertible securities, current            119,962         119,542
 Convertible securities, non-current, and
  other long term debt                      330,000             508

 Stockholders' equity                       260,429         296,162



                INTEGRA LIFESCIENCES HOLDINGS CORPORATION
            RECONCILIATION OF NON-GAAP ADJUSTMENTS - GUIDANCE

 (In thousands, except per share amounts)
                                Projected Three      Projected Three
                                  Months Ended         Months Ended
                                    31-Mar-08           30-Jun-08
                                  Low       High      Low       High

 GAAP net income                 $8,490    $9,190   $12,450   $13,350

 Non-GAAP adjustments:

  Acquisition-related charges     3,210     3,210       270       270

  Facility consolidation,
   manufacturing transfer and
   system integration charges       380       380        70        70

  Incremental audit, legal and/
   or bank fees related to the
   delayed closing of financial
   statements                       800       800       550       550

  Income tax expense (benefit)
   related to above adjustments  (1,580)   (1,580)     (340)     (340)
                                -------   -------   -------   -------

 Total of non-GAAP adjustments    2,810     2,810       550       550

 Adjusted net income            $11,300   $12,000   $13,000   $13,900
 Add back of after tax
  interest expense                    3         3         3         3
                                -------   -------   -------   -------
 Adjusted net income for
  diluted earnings per share    $11,303   $12,003   $13,003   $13,903

 Weighted average common
  shares outstanding for
  diluted net income per share   28,900    28,900    29,100    29,100

 GAAP diluted net income per
  share                           $0.29     $0.32     $0.43     $0.46

  Non-GAAP adjustments detailed
   above (per share)              $0.10     $0.10     $0.02     $0.02
                                -------   -------   -------   -------
 Adjusted diluted net income
  per share                       $0.39     $0.42     $0.45     $0.48



                 INTEGRA LIFESCIENCES HOLDINGS CORPORATION
              RECONCILIATION OF NON-GAAP ADJUSTMENTS - GUIDANCE

 (In thousands, except per share amounts)
                                 Projected Three     Projected Three
                                   Months Ended        Months Ended
                                     31-Aug-08           31-Dec-08
                                  Low       High      Low       High
 GAAP net income                $13,680   $14,880   $20,120   $21,620

 Non-GAAP adjustments:

  Acquisition-related charges       180       180        --        --

  Facility consolidation,
   manufacturing transfer and
   system integration charges       340       340       120       120

   Income tax expense
    (benefit) related to above
    adjustments                    (200)     (200)      (40)      (40)
                                -------   -------   -------   -------

 Total of non-GAAP adjustments      320       320        80        80

 Adjusted net income            $14,000   $15,200   $20,200   $21,700
 Add back of after tax
  interest expense                    3         3         3         3
                                -------   -------   -------   -------
 Adjusted net income for
  diluted earnings per share    $14,003   $15,203   $20,203   $21,703

 Weighted average common
  shares outstanding for
  diluted net income per share   29,400    29,400    29,700    29,700

 GAAP diluted net income per
  share                           $0.47     $0.51     $0.68     $0.73

  Non-GAAP adjustments
   detailed above (per share)     $0.01     $0.01     $0.00     $0.00
                                -------   -------   -------   -------
 Adjusted diluted net income
  per share                       $0.48     $0.52     $0.68     $0.73



                INTEGRA LIFESCIENCES HOLDINGS CORPORATION
            RECONCILIATION OF NON-GAAP ADJUSTMENTS - GUIDANCE

 (In thousands, except per share amounts)
                                               Projected Year Ended
                                                    31-Dec-08
                                                 Low         High
 GAAP net income                               $54,740     $59,040

 Non-GAAP adjustments:

  Acquisition-related charges                    3,660       3,660

  Facility consolidation, manufacturing
   transfer and system integration charges         910         910

  Incremental audit, legal and/or bank fees
   related to the delayed closing
   of financial statements                       1,350       1,350

  Income tax expense (benefit) related
   to above adjustments                         (2,160)    (2,160)
                                               -------    -------

 Total of non-GAAP adjustments                   3,760      3,760

 Adjusted net income                           $58,500    $62,800
 Add back of after tax interest expense             12         12
                                               -------    -------
 Adjusted net income for diluted
  earnings per share                           $58,512    $62,812

 Weighted average common shares
  outstanding for diluted net
  income per share                              29,200     29,200

  GAAP diluted net income per share              $1.87      $2.02

  Non-GAAP adjustments detailed
   above (per share)                             $0.13      $0.13
                                               -------    -------

 Adjusted diluted net income per share           $2.00      $2.15

IART-F

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Integra LifeSciences Holdings Corp.

Integra LifeSciences Holdings Corporation
         John B. Henneman, III, Executive Vice President,
          Finance and Administration, Chief Financial Officer
           (609) 936-2481
           jhenneman@Integra-LS.com
         Karen Mroz-Bremner
         Senior Manager, Corporate Development and
          Investor Relations
           (609) 936-6929
           Karen.Mroz-Bremner@Integra-LS.com

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