• Supports a more rapid worldwide S.T.A.R.® total ankle replacement system roll-out than previously planned
  • Supports expansion of core business and planned introduction of new products and product enhancemensts in 2010
  • Company to expand clinical studies of top products
  • Refinances existing indebtedness

New York, NY, December 14, 2009 — Small Bone Innovations, Inc. (SBi), a leading, privately held orthopedics company focused exclusively on technologies and treatments for the small bones & joints, has closed on a $30mm credit facility to fund accelerated business expansion and refinance existing indebtedness. The senior, secured credit facility was provided by Drawbridge Special Opportunities Fund, a fund managed by an affiliate of Fortress Investment Group, a global investment management firm headquartered in New York City.

The credit facility has allowed SBi to fully repay approximately $13 million of its existing debt and will enable the company to build-upon its core business by funding the introduction in 2010 of several new products and improved versions of existing products for both the upper and lower limb anatomies. The company said it also plans to build-out instrument sets to further support its product portfolio. The funding will also support SBi’s focus on evidence-based medicine, by developing and initiating several studies to better support the clinical understanding of its product portfolio.

“Since the FDA-approved ‘Indications for Use’ demonstrating S.T.A.R.® as superior in efficacy and comparable in safety to ankle fusion, and our U.S. introduction of the S.T.A.R.® ankle earlier this year, demand for uncemented total ankle replacement systems in both domestic and overseas markets has exceeded our sales plan,” said Anthony G. Viscogliosi, Chairman & CEO of SBi. “Consequently, SBi intends to accelerate manufacture of both implants and instrument sets by bringing forward capital investment in the S.T.A.R.® system and expanding its surgeon education and training programs.

“Furthermore, these developments are expected to have a favorable corollary effect on the funding of several other product introductions and enhancements planned for 2010. Obviously, these events are highly encouraging for our business during this period of an extremely weak global economy and uncertainty in all aspects of health care in the U.S.,” Mr. Viscogliosi added.

Helmut D. Link and the investor group of Link America, Inc. made an equity investment in SBi in conjunction with the closing of this credit facility. Mr. Link said: “Under the leadership of Mr. Viscogliosi and all of the team at SBi, I am confident that the S.T.A.R.® ankle can realize its full potential and change the standard of care from fusion to total joint replacement, as we had envisioned when we developed this product for FDA approval and sale in the U.S.”

Mr. Link added: “Under SBi ownership the S.T.A.R.® can become the centerpiece of the company’s lower limb product portfolio and it enhances sales opportunities for the entire SBi product portfolio. I am very pleased and highly encouraged with the market response following the FDA PMA approval of S.T.A.R.® and foresee the case for further rapid expansion.

“Additionally, I believe that SBi’s surgeon education and training programs are thorough and well executed. For the above reasons, the Link America investor group and I have decided to make an investment in the company.” he concluded.

About Small Bone Innovations, Inc.

Small Bone Innovations, Inc. (SBi) was founded in 2004 by Viscogliosi Brothers, LLC, (VB), a 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 bones & joints. By integrating established companies and professionals in the field, SBi offers a broad, clinically proven portfolio of products and technologies to treat trauma and diseases in small bones & joints.

Today, SBi has more than 140 employees at facilities in New York, NY, Morrisville, PA, and Bourg-en-Bresse, France, among other locations worldwide.

For more information on SBi, please visit:

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 exclusively to the musculoskeletal/orthopedics sector of the health care industry. 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.

VB’s mission is 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.

The Viscogliosi brothers have pioneered more than 170 financial, strategic and management initiatives for companies in the musculoskeletal/orthopedic sector, from start-up, seed and development stage all the way to exit. These initiatives have helped people live better lives through the orthopedic and spinal products developed, marketed and sold by the companies VB has assisted in developing and financing.
For more information about VB, please visit:

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 SBi’s business including increased competition; the ability of SBi to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks.

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Viscogliosi Bros., LLC is not an investment adviser, money manager, asset manager or otherwise give investment advice.