BioHorizons (BHZN) $88 million IPO with a market capitalization of $320 million at the price range mid-point of $16 is scheduled for Thursday, February 3, 2011

SUMMARY & CONCLUSION

. Speculative -- BHZN has lost money for the past three years . 67% of IPO proceeds to pay debt to BHZN’s largest shareholder . Sales flat from 2009 relative to 2008. Sales increased 20% for the nine months ended ended September 2010. . Gross margin is only 30%

Valuation Ratios	IPO Mrkt	Price /	Price /	Price /	Price /
annualizing Sept 9 mos	Cap (mm)	Sales	Earnings	BookValue	TangibleBV
BioHorizons (BHZN)	$320	4.1	-141	2.1	9.1

BUSINESS

Dental implants, plus soft tissue regeneration products for the replacement of missing teeth.

MARKET

. According to iData Research Inc., or iData, the worldwide dental implant market, including implants, final abutments and biologics, was $3.7 billion in 2009 and is expected to grow to $7.9 billion by 2015 . Compounded annual growth rate (CAGR) of 13% expected for the market.

LASER-LOK TECH PLATFORM

. BHZN’s implant products are based on a proprietary Laser-Lok platform technology as well as enhanced biomechanically-engineered threads. . BHZN believes that its proprietary Laser-Lok platform technology is the only technology on the market today for which there is clinical data that supports reduced bone and soft tissue loss which are frequent complications associated with conventional dental implant procedures.

COMPETITION

Includes a small group of large diversified companies account for a significant portion of the dental implant marke

Dental implants

BHZN’s implants, abutments and associated tools compete with Nobel Biocare Holding AG, Straumann Holding AG, Biomet 3i (a subsidiary of Biomet, Inc.), Astra Tech AB (a subsidiary of AstraZeneca Group), Zimmer Holdings, Inc. and DENTSPLY International Inc. These companies all offer a wide range of dental implant solutions and all of them have larger sales channels and financial resources than BHZH.

Regenerative solutions

BHZN’s AlloDerm® Tissue Matrix products and regenerative specialty instruments compete with products offered by Straumann Holding AG, Zimmer Holdings, Inc., Osteohealth Company (a division of Luitpold Pharmaceuticals, Inc., which is a group company of Daiichi Sankyo Co., Ltd.) and DENTSPLY International Inc. These companies all offer a wide range of regenerative solutions and some of them have larger sales channels and financial resources than BHZN.

USE OF PROCEEDS

$63mm from sale of 4.7mm shares. Shareholders plan to sell .9mm shares

. $42mm (67%( to pay debt held by HealthpointCapital, the principal and largest stockholder, as of September 30, 2010 . Balance for general corporate purposes

BioHorizons	BHZN, C, 6					Post IPO shares: 20mm
Dental implants
Birmingham AL	2007	2008	2009	Sept9mos09	Sept9mos10	IPO Mkt
Revenues ($mm)	$56	$69	$69	$49	$59	Cap (mm)
Gross margin % of rev	38%	33%	33%	31%	30%	$320
Net income (loss)	-$2	-$3	-$3	-$3	-$2	@$16
Net income % of rev	-3%	-4%	-4%	-5%	-3%
Valuation Ratios	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
annualizing Sept 9 mos	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
BioHorizons (BHZN)	$320	4.1	-141	2.1	9.1	28%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	2	1	6