The Trading Floor

[Arctec]

This is a notice to all shareholders of IsoTis OrthoBiologics:

75% of IsoTis shares have now been tendered in the company's previously announced exchange offer, which has therefore been declared unconditional.

Trading on NASDAQ started on January 26, 2007. IsoTis Inc. intends to delist the IsoTis SA shares as soon as possible from the SWX Swiss Exchange, Euronext Amsterdam N.V. and the Toronto Stock Exchange.

For shareholders who have not yet accepted the exchange offer, the exchange period has been extended until Wednesday, February 7 at 4 pm CET.

The easiest way to proceed is to call your bank. For any additional information, visit the website www.isotis.com or call the toll free number 1-800-565-4535.

Pieter Wolters, President and CEO of IsoTis said: "We have always been clear on the logic to streamline our stock market listings and become a U.S. listed company: it is a natural next step after the streamlining of IsoTis organization, product offering and technology pipeline that we executed in the last years. We believe the benefits of a single listing are obvious and that our growth momentum  8 quarters of strong revenue growth  and our cash position provide a sound basis for simplifying our capital structure. A more straightforward capital structure is an important condition to further accelerate our growth. With over 90% of our employees and over 75% of our revenues in the U.S., a NASDAQ listing alongside our peers provides a natural market for our shares."

IsoTis believes that becoming a U.S. company listed on NASDAQ is the next logical step in its continued progression and expects that this transaction will enable additional growth and should provide additional benefits to stockholders by:

Increasing visibility to institutional investors. IsoTis' peer companies trade on U.S. stock markets and not on any of the international exchanges where IsoTis shares currently trade. A NASDAQ listing among peer companies should assist investors in evaluating IsoTis by providing direct, easily accessible comparables. The improved visibility offered by a U.S. listing should help to increase U.S. analyst coverage, and thereby bring the Company's valuation more in line with that of its peers. IsoTis also believes that a listing on NASDAQ will lead to improved access to U.S. institutional investors focused on medical device and growth companies, who may be prohibited from investing in IsoTis as a non-U.S. listed stock.



A single U.S. exchange, more liquidity, less complexity. IsoTis' shares currently trade on SWX Swiss Exchange, Euronext Amsterdam and the Toronto Stock Exchange. IsoTis believes that a single listing will enable investors to obtain accurate and reliable information regarding company performance and relative valuation. Additionally, IsoTis believes that consolidating its existing listings onto a single exchange, in particular the NASDAQ Global Market, where numerous life sciences companies are listed, will increase the liquidity of IsoTis shares, which should be beneficial for IsoTis shareholders. Lastly, IsoTis believes that listing on a single stock exchange will reduce the complexity of the Company's current legal and securities compliance requirements and reduce its related expenses.



Facilitating access to capital markets. IsoTis believes that by establishing a presence on NASDAQ, increasing the Company's visibility to investors and analysts and increasing the liquidity of the Company's shares, the Company will be positioning itself to have better access to the global capital markets. Improved access to capital markets should, in turn, enable additional growth in the Company by facilitating the Company's ability to raise additional capital through the issuance of stock or the Company's ability to acquire or invest in complementary technologies or products using its stock.



Aligning stock exchange listing with primary market and primary location of operations. IsoTis believes that by becoming a U.S. company with a NASDAQ listing, it will demonstrate its commitment to the U.S. orthopedics market, the largest single orthopedic market in the world, its U.S. customers and its U.S. staff. At the same time IsoTis will continue to serve its fast growing contingent of international customers through its Swiss sales and marketing organization out of Lausanne and from its headquarters in Irvine, CA