Good day, everyone, and welcome to the Integra LifeSciences 2007 fourth quarter conference call. (Operator Instructions) At this time, I would like to turn the call over to your host, Mr. Stuart Essig, President and Chief Executive Officer. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining us for the Integra LifeSciences fourth quarter 2007 conference call. I am Stuart Essig, President and Chief Executive Officer of Integra LifeSciences Holdings Corporation. Joining me today in Plainsboro are Jack Henneman, Chief Administrative Officer and Acting Chief Financial Officer; and Gerry Carlozzi, Chief Operating Officer. During this call, we will review our revenues for the fourth quarter and full year 2007, which we announced this morning, and update our forward-looking guidance for 2008. Much as we would welcome the usual hour of questions at the end of the call, we're not in a position to do so because we have not released audited financial statements. We would absolutely not want to give you any information that turns out to be different in our final numbers. Just as we do not answer questions during the quiet period before an earnings report, we're not going to take them now, since it is actually still the quiet period before an earnings report. We will, however, schedule a full-blown earnings call once our audited numbers are available, and we'll take all of your questions then. Thank you as always for your patience. Before we get to the heart of the call, Jack Henneman will make some remarks regarding the content of this conference call.

Thank you, Stuart. This listen-only presentation is open to the public and can be heard through telephone access or via a live webcast. A replay of the conference call will be accessible starting approximately one hour after the conclusion of the live event. Access to the replay is available through March 4, 2008 by dialing 719-457-0820, access code 9005480, or through our webcast accessible on the Investor Relations portion of our website. Until the audit of the financial statements for the year ended December 31, 2007 is completed, the financial information disclosed in this morning press release and on this call are subject to change. Any changes to the financial information disclosed in this morning's press release and on today's call, as well as additional items that may be identified, could be material. Today's call is a proprietary presentation of Integra LifeSciences Holdings Corporation and is being recorded by Integra. No recording, reproduction, transcript, transmission or distribution of today's presentation is permitted without Integra's consent. Because the content of this call is time sensitive, the information provided is accurate only as of the date of this live broadcast, February 29, 2008 and should not be relied upon beyond March 4, 2008, the last day that an archived replay of the call authorized by Integra will be available. Certain statements made during this call are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Among others, statements concerning our ability to complete our financial statements for the fourth quarter and 2007 fiscal year and file our Form 10-K for the year ended December 31, 2007 in a timely manner, our ability to remediate material weakness, management's expectations of future financial results, new product launches and regulatory approval, and market acceptance of these new products, future product development…

Thank you, Jack. In 2007, we organized our entire selling organization around divisions and delivered tremendous revenue growth. We continue to drive our mission to become one of the great medical device companies. As we have done in previous years, we've grown internally by introducing new products and growing our sales organization. We've also grown by consummating strategic and synergistic transactions. We completed five in 2007. We've also started new businesses from scratch. We entered the spine orthobiologics market through the introduction of the Integra Mozaik, the establishment of a sales organization and the acquisition of IsoTis. Finally, we've expanded our horizons internationally, significantly increasing our European infrastructure, including through continued go-direct efforts for various products and markets. Revenue growth was stronger in the quarter than we expected, nearly $3 million above the top-end of our guidance and significantly higher than Street expectations. We achieved revenues of approximately $157.6 million in the fourth quarter. These revenues were $32 million or 26% higher than in the fourth quarter of 2006. Revenues from products acquired since the beginning of the fourth quarter of 2006 total $18 million. We are very pleased to announce that internal revenue growth in the fourth quarter was consistent with our longer term targets of 10% to 12% and well above Q3. We remain pleased with the underlying strength of our business and its continued ability to generate double-digit revenue growth before taking acquisitions into account. For the full year, revenues were approximately $550 million, an increase of $131 million or 31% above 2006 revenues. We are very pleased with our revenue growth for the year. At this time last year, we guided to sales of $508 million to $520 million for the year 2007. Taking into the account the approximately $37.7 million in revenues from acquisition, which…

Thank you, Stuart. As we are still in the process of completing our 2007 financials statements, we are unable at this time to write results below the revenue line, neither the continuing material weakness nor its result. The delay in the completion of our audited financial statements reflects any underlying weakness in our business. On the contrary, our business has been very strong as reflected in our revenues. Importantly, based on the work performed to-date, we expect that the potential adjustment that we are analyzing will not have a negative impact on our earnings. We remain committed to put all necessary resources behind our finance team. We've succeeded in recruiting, training and retaining qualified people in our finance organization in the last several months, which will enable us to improve the timeliness of our financial reporting. We have supplemented to replace many of the consultants we previously used to close our books with permanent employees. All are them are rapidly coming up to speed on our numbers and processes. Substantial progress has been made, but more work remains to be done. Resolution of these issues remains the top administrative priority of the Integra organization. Let me reiterate from our press release what we know at this time about our earnings per share. First, the company expects to record a $4.6 million non-tax deductible charge in the fourth quarter of 2007 for in-process research and development related to the IsoTis acquisition. We anticipate that this charge will impact earnings per share by $0.16. We have not included this charge on our previously provided fourth quarter and full year 2007 GAAP guidance, because at the time we provided that guidance, the amount of the charge had not been determined. Because of the impact of this charge, we anticipate that we could report…

Thank you, Jack. During the quarter, we continue to execute on our plans to complete the integration of the IsoTis acquisition. I'd like to acknowledge the hard work of the integration teams who worked on the IsoTis project. The integration required a significant amount of work and our employees have risen to the challenge and worked hard to affect a smooth and an efficient process. Thanks to their hard work, we remain on target to complete the integration in accordance with our timetable. We have executed an all actions required to achieve the synergies we laid out as part of the acquisition plan. Our NeuroSciences selling organization continued to focus on the introduction of Integra Mozaik into key strategic spine accounts. We now have 225 accounts that we consider active. We have been exceedingly pleased with the reception of the Integra Mozaik, Osteoconductive Scaffold that's been received in the market. Surgeons appreciate the handling characteristics. We have launched additional sizes and configurations during this quarter. Near the end of 2007, we formed our orthobiologics sales organization to combine forces with our direct neuro sales team. Our orthobiologics sales teams allow us to increase our market presence in orthopedics from 20 specialists selling Integra Mozaik bone graft substitutes during the first nine months of 2007 to our new expanded model consisting of over 300 reps selling our full range of orthobiologic products. IsoTis forms a centerpiece of our new Integra orthobiologics distribution channel. IsoTis product lines include demineralized bone matrices, marketed under the brands DynaGraft, OrthoBlast, Accell. These products are used for bone repair and bone fusion in orthopedic procedures that includes spine, trauma, reconstruction in foot and ankle. The combination of the IsoTis products with the Integra Mozaik family of products provides us with the most comprehensive product portfolios in…

Thank you, Gerry. Our management team continues to seek out external opportunities for growth, and future acquisitions could affect our results going forward. However, the forward-looking guidance that we are providing does not reflect the impact of acquisitions or other strategic corporate transactions that have not yet closed. In our press release, we have provided quarterly revenue and earnings per share guidance for 2008. Full year revenue and adjusted EPS guidance for 2008 remains the same as we previously announced. Due to the increased seasonality that we experienced in 2007, we have adjusted our second half guidance to better reflect that seasonal trend, shifting both revenues and earnings from the third quarter to the fourth quarter of 2008. But, our full year 2008 revenue guidance remains $635 million to $655 million. The full year GAAP earnings per share guidance for 2008 is anticipated to be in the range of $1.86 to $2.01 and adjusted earnings per share in the range of $2 to $2.15. As we've done in 2007, we no longer adjust earnings per share for the effects of FAS 123(R). For those of you who are still tracking the impact of FAS 123(R), we anticipate total stock-based compensation expense in 2008 to remain in the range of what was reported in 2007. We expect the quarterly impact of share based compensation expense to be approximately $0.09 per diluted share for each quarter during 2008. I want to complement our sales, marketing, clinical and development teams for the great success in the quarter and in 2007. With record revenues well in excess of our expectations, we delivered excellent growth in the quarter and improved our ability to drive both internal developments and acquired products. We expect this trend to continue and remain extremely confident in our growth plan, strategic direction and divisional leadership. We are very well positioned for a great 2008. As we said, we can take questions. However, when we've completed our audited financial statements for the year ended December 31, 2007, we will host a conference call to discuss the audited financial results. That call will be open to all listeners and will be followed by a question-and-answer session. Thank you for your participation in today's call.

Once again, ladies and gentlemen, this will conclude today's conference. We thank you for your participation. You may now disconnect.