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HealthpointCapital Announces Purchase of Alphatec Manufacturing, Inc. BY EDITOR, MARCH 18, 2005

HealthpointCapital Announces Purchase of Alphatec Manufacturing, Inc.

Alphatec Manufacturing, Inc. is one of the largest independent spinal implant companies in the world.

NEW YORK, New York, and CARLSBAD, California, March 18, 2005 /PRNewswire/ -- HealthpointCapital Partners, L.P. ("HealthpointCapital") announced today the purchase of Alphatec Manufacturing, Inc. ("Alphatec" or "Company"). It produces and sells a rapidly growing line of spinal fusion products. Alphatec specializes in co-developing spinal implants and instruments with surgeons and is one of the highest growth companies in the space. Terms of the transaction were not disclosed.

"Spine is the largest and fastest growing element of the orthopedic device industry," said John H. Foster, HealthpointCapital Chairman and CEO. "Capital is the single greatest constraint to growth among independent spine companies. This acquisition provides capital to accelerate Alphatec's growth. Substantial funding will allow for expanded manufacturing capacity, inventories, infrastructure and staffing in all functions." Mr. Foster added, "Physician relationships and service are at the foundation of Alphatec. This is the Company's key to success."

Mr. Foster has become the Chairman and CEO of Alphatec. Shunshiro "Roy" Yoshimi the founder remains involved in the Company. Messers Foster and Yoshimi comment that "the management team is strong and will be expanded to meet growth objectives."

Alphatec Manufacturing, Inc.

The Company was founded in 1990 and built by Mr. Yoshimi. He is a life-long medical technology executive and entrepreneur. The metamorphosis of the business has been from contract medical device manufacturing to trauma products to large joint products and finally to spinal implants, which are now the primary focus of Alphatec. It is distinguished among independent spine companies because it manufactures, engineers and prototypes all its own products. There are no service gaps between engineering/prototyping and the physician. The Company has 100 employees and is located in Carlsbad, CA and Las Vegas, NV.

HealthpointCapital

HealthpointCapital Partners II, L.P. is a values-driven, research-based private equity firm exclusively focused on the orthopedic and dental device businesses. HealthpointCapital has $500 million of institutional capital under management.

Additional Information

CONTACT: Media, John McCormick of HealthpointCapital,
212-935-7780, jmccormick@HealthpointCapital.com

Web sites: Alphatec and HealthpointCapital.

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