IsoTis - Integra Merger

IRVINE, California, September 19 /PRNewswire/ --
- Leading Proxy Advisor Recommends Shareholders Support Merger

IsoTis, Inc. (NASDAQ: ISOT) ("IsoTis"), an orthobiologics
company, today announced that Institutional Shareholder Services, ISS, a
leading proxy advisor, recommends shareholders support the merger of IsoTis
and Integra LifeSciences Holdings Corporation (NASDAQ: IART) ("Integra").

For every M&A analysis, ISS reviews publicly available
information and evaluates the merits and drawbacks of the proposed
transaction, balancing various and sometimes countervailing factors including
valuation, market reaction, strategic rationale, negotiations and process,
conflicts of interest and governance. Regarding the IsoTis-Integra
combination, ISS cites the following factors in particular:

"In reaching its decision to enter into the merger, the IsoTis
board evaluated, among other things, the following factors:

(i) the merger consideration of $7.25 per share represents an
approximately 5.4 percent premium over the closing price of the company's
common stock on August 6, 2007, the last trading day prior to the
announcement of the transaction;

(ii) the lack of any other viable financing or strategic
alternatives available to the company that would be expected to enhance
stockholder value, despite the company's extensive efforts to pursue such
alternatives since the withdrawal of the company's initial public offering;
and

(iii) the risks of remaining independent, including
management's assessment that if the company remains independent, it likely
will not be able to obtain financing and will run out of cash to continue
operations after October 2007, requiring the company to consider seeking
bankruptcy protection.

The company has been operating on a net income and cash flow
deficit and expects this to continue for the foreseeable future. Despite its
efforts, the company has been unable to obtain a viable financing alternative
and believes it will run out of cash to operate the business in October 2007.
The company believes that if the merger is not consummated, the company may
be forced to declare bankruptcy that will result in a decrease in the value
of its common stock."

The ISS report concludes, stating, "Based on our review of the
terms of the transaction and the factors described above, specifically the
one-day market premium and the company's financial condition, we believe that
the merger agreement warrants shareholder support."

In advance of the October 11, 2007 stockholder meeting, IsoTis
intends to hold information meetings for its European stockholders on the
following dates:

- September 25, 2007, 6 p.m., local time, at Hôtel
Alpha-Palmiers, located in Lausanne, Switzerland

- September 26, 2007, 6 p.m., local time, at Hotel Baur au
Lac, located in Zurich, Switzerland

- September 27, 2007, 6 p.m., local time, at World Trade
Center Schiphol Airport, located in Amsterdam, The Netherlands

The purpose of these meetings is to provide stockholders with
an opportunity to ask questions regarding the acquisition of IsoTis by
Integra. Stockholders will not be asked to vote on the transaction during
these information meetings. IsoTis stockholders will vote on the transaction
at the October 11, 2007 special meeting of stockholders to be held in Irvine,
California. Stockholders are reminded that not voting on the transaction
effectively constitutes a vote against the merger. The IsoTis board of
directors recommends that IsoTis stockholders approve the Agreement and Plan
of Merger.

About IsoTis

IsoTis is an orthobiologics company that develops,
manufactures and markets proprietary products for the treatment of
musculoskeletal diseases and disorders. IsoTis' current orthobiologics
products are bone graft substitutes that promote the regeneration of bone and
are used to repair natural, trauma-related and surgically-created defects
common in orthopedic procedures, including spinal fusions. IsoTis' current
commercial business is highlighted by its Accell line of products, which the
company believes represents the next generation in bone graft substitution.

On August 7, 2007 Integra and IsoTis announced that they have
reached a definitive agreement to create a global orthobiologics leader. The
combination would create a comprehensive orthobiologics portfolio, one of the
largest sales organizations focused on orthobiologics in the US, and multiple
cross-selling opportunities. The transaction is subject to approval of
IsoTis' stockholders, as well as other closing conditions and approvals. Upon
closing, IsoTis will become a wholly-owned subsidiary of Integra and Integra
will be one of the largest companies in the world focused on advanced
technology in orthobiologics.

Forward-Looking Statements

Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended, IsoTis' proposed acquisition by Integra. Words such as
"strategy," "expects," "plans," "anticipates," "believes," "may," "will,"
"might," "could," "would," "continues," "estimates," "intends," "pursues,"
"projects," "goals," "targets" or the negative or other variations thereof
and other words of similar meaning are intended to identify such
forward-looking statements. One can also identify them by the fact that they
do not relate strictly to historical or current facts. Such statements are
based on the current expectations and projections of the management of IsoTis
only. Undue reliance should not be placed on these statements because, by
their nature, they are subject to known and unknown risks and can be affected
by factors that are beyond the control of IsoTis. Actual results could differ
materially from current expectations and projections. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform Act
of 1995 and, as such, speak only as of the date made. IsoTis undertakes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.

Important Information for Investors and Stockholders

IsoTis has filed a definitive proxy statement and other
relevant materials with the SEC in connection with the proposed merger with
Integra. IsoTis urges IsoTis stockholders to read the proxy statement and any
other relevant documents filed by IsoTis with the SEC because they will
contain important information. Investors and stockholders may obtain the
proxy statement and other documents filed with the SEC free of charge at the
website maintained by the SEC at http://www.sec.gov/. Documents filed with
the SEC by IsoTis are also available free of charge on the investor relations
portion of the IsoTis website at http://www.IsoTis.com/. The proxy statement
was first mailed to stockholders on or about September 5, 2007.

Participants in the Solicitation

IsoTis, and its directors and executive officers may be deemed
to be participants in the solicitation of proxies from IsoTis' stockholders
in connection with the proposed merger with Integra. The names of IsoTis'
directors and executive officers and a description of their interests in
IsoTis are set forth in IsoTis S.A.'s Annual Report on Form 20-F, which was
filed with the SEC on May 11, 2007. Investors and stockholders can obtain
more detailed information regarding the direct and indirect interests of
IsoTis' directors and executive officers in the merger by reading the
definitive proxy statement.
For information contact: Rob Morocco, CFO Hans, +1-949-855-7155, robert.morocco@isotis.com; Herklots, Director IR, +1-949-855-7195 or +41-21-620-6011, hans.herklots@isotis.com

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