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ReGen Biologics Announces Incremental Bridge Financing

December 8, 2008

ReGen Biologics Announces Incremental Bridge Financing

Hackensack, NJ – December 8, 2008 – ReGen Biologics (OTC: RGBO) (“ReGen”) announced today that it has completed a private placement of convertible notes resulting in gross proceeds of approximately $500,000.  This incremental bridge financing (the “Financing”) follows the November 14, 2008 findings of the FDA Orthopaedic Advisory Panel that ReGen’s collagen scaffold device is as safe and effective as the predicate devices.  The Financing is designed to enable the Company to operate through the expected timeframe required for a decision from the FDA on its 510(k) submission, following which the Company has in place a financing strategy designed to support launch of the collagen scaffold device in the U.S. should ReGen receive a favorable decision from the FDA.

Under the terms of the Financing, the Company sold approximately $500,000 in aggregate principal amount of unsecured convertible notes.  The notes accrue interest at an annual rate of 8% and become due and payable on July 24, 2009.  At the option of the holders, the notes may be converted into the common stock of the Company at a price of $3.00 per share.  In connection with the Financing, the Company issued five year warrants equal to 25% of the shares of common stock into which the notes may convert, exercisable at a price of $0.20 per share.

About ReGen Biologics, Inc.:
ReGen Biologics is an orthopedic products company that develops, manufactures and markets innovative tissue growth and repair products for U.S. and global markets. ReGen's patented collagen scaffold technology includes applications in orthopedics, general surgery, spine, cardiovascular and drug delivery.  ReGen’s first approved product using its collagen scaffold technology is the Menaflex collagen meniscus implant, which is cleared for sale in Europe and other countries and marketed through ReGen’s European subsidiary, ReGen Biologics AG.  The CMI® name was used during the research and development phase of the Company’s collagen meniscus implant device, and it will continue to be seen in numerous scientific publications and clinical references.  ReGen continues to work to obtain FDA clearance of the Menaflex device in the United States.

For more information on ReGen, visit www.regenbio.com.  For more information on the Menaflex collagen meniscus implant visit www.menaflex.com.
 
Contact:

Brion Umidi    
ReGen Biologics, Inc.    
Senior Vice President, Chief Financial Officer
(201) 651-3515    
bumidi@regenbio.com