Excluding the impact of currency exchange rates, revenues increased 6% for the quarter ended March 31, 2009.

Integra’s president and chief executive officer, Stuart Essig, said Despite ongoing challenges in the global economy and the financial condition of hospitals, we are pleased with the underlying strength of our business, particularly our operating cash flow. We have reacted rapidly to the changes in our environment, reducing costs and reallocating resources toward our less economically sensitive markets.

Adjusted net income for the first quarter of 2009, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $13.8 million, or $0.47 per diluted share. Adjusted net income for the first quarter of 2008, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $14.4 million, or $0.50 per diluted share.

Integra generated $37.2 million in operating cash flow and used $3.0 million of cash on capital expenditures in the first quarter of 2009.

During the first quarter of 2009, company repurchased $32.1 million par value of its 2.75% senior convertible notes due June 2010 for a total of $29.5 million. We will continue to review our capital structure over the coming twelve months. Repurchasing our convertible notes at a discount is a good use of our cash, allowing us to reduce not only our interest expense, but also the ultimate cash principal payment, said Jack Henneman, Integra’s chief financial officer.

Adjusted EBITDA for the first quarter of 2009, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $33.8 million, an increase of 8% compared to the same period last year. Adjusted EBITDA excluding stock-based compensation, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $37.5 million, an increase of 8% compared to the same period last year.

Outlook for 2009

The company has reduced its revenue and earnings per share guidance for the full year 2009. The company is now anticipating revenues between $680 million and $700 million, versus prior guidance of $720 million to $740 million. The company is now guiding to GAAP earnings per diluted share of between $1.63 and $1.83 versus prior guidance of between $1.86 and $2.06, and to adjusted earnings per diluted share of between $2.00 and $2.20 versus prior guidance of between $2.20 and $2.40. We expect revenues in the fourth quarter of 2009 will be the strongest of the year. In accordance with our usual practice, expectations for financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed.

In the future, the company may record, or expects to record, certain additional revenues, gains, expenses or charges (such as acquisition-related charges, facility consolidation, manufacturing and distribution transfer, and system integration charges, and non-cash interest expense related to the application of FSP APB 14-1) that it will exclude in the calculation of adjusted EBITDA and adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.

On a quarterly basis, the company expects to incur around $3.7 million, or $0.08 per share, of share-based compensation expense associated with FAS 123R in 2009.