tissue

The depth of penetration of trabecular cartilages in the bone marrow decreases while the cancellous tissue less penetrates into the cavity.

Osteotech was the first company to bring to market the technology of utilizing dense cancellous tissue in a weight-bearing cervical spacer application.

The improved revenues are primarily attributable to approximately a 106% and 39% increase, respectively, in revenues from processing of donor tissue for our clients, and approximately a 27% and 78% increase, respectively, in OsteoPure(R) Allogeneic Cancellous Tissue revenues.

Segment revenues from processing of donor tissue for our clients increased approximately 103% while revenues from bio-implants were flat, but increased approximately 5% after excluding $192,000 from 2002 revenues related to the bio-d(R) Threaded Cortical Bone Dowel which was removed from the market in January, 2003, and revenue from OsteoPure(R) Allogeneic Cancellous Tissue increased approximately 26%.

The improvements in revenues are primarily attributable to a 12% and 19% increase, respectively, in revenues from processing of donor tissue for our clients, a 13% and 11% increase, respectively, in bio-implant revenues and a 95% and 114% increase, respectively, in OsteoPure(R) Allogeneic Cancellous Tissue revenues.