May 22, 2006

Small Bone Innovations, Inc. Honored As One Of The Nation’s Leading Technology Companies

Orthopedic Pioneer Receives The Prestigious Red Herring 100 Award For Driving The Future Of Technology

NEW YORK – MAY 22, 2006 – Small Bone Innovations, Inc. (SBi), an orthopedic device company focused on treating small bones & joints from the fingertips to the shoulder, and from the toes to below the knee, was honored today as one of the nation’s leading technology companies, having been selected a winner of the annual “Red Herring 100 North America” award by Red Herring magazine.

SBi’s Chairman & CEO, Anthony G. Viscogliosi will accept the award tomorrow evening in Monterey, CA from Joel Dreyfuss, editor-in-chief of Red Herring magazine, a leading publication covering the business of technology, innovation, finance and entrepreneurial activity. Red Herring has recognized SBi as one of its ‘Top 100’ most promising technology companies in North America. SBi was the only orthopedic device company to be selected among an initial entry of more than 1,000 firms, and one of only a dozen companies chosen from the New York area. Judging criteria included technological innovation, quality of management and execution of strategy.

SBi was founded in New York, NY in 2004, and has more than 140 employees at facilities in Manhattan, NY, Morrisville, PA, San Diego, CA, Minneapolis, MN and Bourg-en-Bresse, France. Earlier this year, SBi announced the largest ever venture capital funding in orthopedic history when it closed its Series B round of financing with a raise of $42.2 million.

“This award is focused on sectors where technology is exciting, where money is being invested, and where the possibility of long-term growth is strong,” Mr. Viscogliosi said. “As a founder, investor and leader of orthopedics companies for over 20 years, I have always championed this belief about the future of the musculoskeletal industry. The entire SBi family is extremely proud, not only to have established a company as innovative and groundbreaking as Small Bone Innovations, but to have created an entire new industry focused exclusively on small bone & joint surgeons and their patients,” he added.

“With venture capital flowing again, we’re seeing a lot of innovative new companies taking on the established players with disruptive technologies and innovative business plans,” said Joel Dreyfuss, Editor-in-Chief of Red Herring. “The Red Herring 100 North America companies, among them Small Bone Innovations, are pushing and breaking the boundaries of the technology business and we are excited to report on their success stories.”

Red Herring’s lists of top private companies are an important part of the renowned magazine’s tradition of identifying new and innovative technology firms and entrepreneurs. Companies like Google and eBay were spotted in their early days by Red Herring editors as some that would change the way we live and work.
After receiving more than 1,000 submissions and nominations, Red Herring’s editorial staff rigorously evaluated SBi and the other contenders through a careful analysis of financial data and subjective criteria, including quality of management, execution of strategy, and dedication to research and development. The Red Herring 100 North America companies are at the forefront of the technologies that are changing our lives in profound ways.
About Small Bone Innovations, Inc.
Small Bone Innovations, Inc. (SBi) was founded in 2004 by Viscogliosi Bros., LLC, (VB), the New York-based merchant banking firm that specializes in the musculoskeletal /orthopedic sector. VB created SBi as the first company to focus purely on small bone & joint science. By integrating established companies and professionals in the field, SBi today offers a broad, clinically proven portfolio of products and technologies to treat trauma and diseases in small bones & joints.

VB’s acquisitions and technology licenses included: Avanta Orthopaedics, Inc. (hand/wrist/elbow arthroplasty and trauma products – USA); Envision, Inc. (implant manufacturing – USA); Actipore™ (porous metal technology – Canada); Artelon ®(biologically active & biodegradable technology – Sweden); Xtremi-T, LLC (resorbable trauma technology – USA); and Fixano, S.A.S. (broad line of small bone & joint implants - France).
SBi completed a Series B financing, raising a record total of $42.2 million, announced in January, 2006. Based on data provided by Venture Source, this was the largest venture capital investment ever recorded in the field of orthopedic devices.

For more information on SBi, please visit: www.totalsmallbone.com

About Viscogliosi Bros., LLC

Established by Marc R. Viscogliosi, John J. Viscogliosi and Anthony G. Viscogliosi in New York City in 1999, Viscogliosi Bros., LLC (VB) was the first venture capital/private equity and merchant banking firm dedicated to the musculoskeletal/orthopedics sector of the health care industry.

Today, VB is a leading independent firm with a mission to create, build and finance companies founded on innovations developed by surgeons and uniquely focused on "life changing" musculoskeletal/orthopedic technologies. VB has worldwide surgeon, industry and trade relationships and significant financial expertise in the musculoskeletal/orthopedic sector.

As principals of VB, the Viscogliosi brothers have a combined total of nearly half a century of experience analyzing and investing in the musculoskeletal/orthopedics sector, directing literally billions of dollars through the orthopedics industry. They have pioneered innovative financial, strategic and management initiatives for nearly 150 companies in the sector, from start-up, seed and development stage all the way to exit, while helping thousands of people lead better lives through the orthopedic and spinal products marketed and sold by the companies they have assisted in developing and financing.

For more information about VB, please visit: www.vbllc.com

About Red Herring Spring 2006

Red Herring Spring 2006 will assemble 300 of the continent’s most innovative and successful CEOs, investors, and corporate developers and feature a dynamic group of over 100 speakers that are pushing and breaking the boundaries of the business of technology. Themed “The Pursuit of Disruption,” it will be held May 23-25 in Monterey, California. Please contact Michael Felber at 650.428.2900 or email mfelber@redherring.com to request an invitation to attend the event.

More information is available online at www.herringevents.com/rhspring06.

About Red Herring Magazine

Red Herring magazine is a sophisticated insider's guide to the business of technology, featuring unparalleled insights on the emerging technologies driving the economy, from the Internet to wireless communications and digital entertainment. Red Herring's journalists report on how innovation and entrepreneurship are transforming business and how the business of technology is transforming the world, providing readers with a deep understanding of venture capital and capital markets. Recognized as an essential resource in today's fast-changing business world, Red Herring gets the right answers before anyone else even thinks to ask the questions.

More information on Red Herring is available on the Internet at www.redherring.com.

Forward-looking statements

This press release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks.