Accellent Inc. Announces First Quarter 2007 Financial Results.

WILMINGTON, Mass. -- Accellent Inc. (the "Company"), a wholly owned subsidiary of Accellent Holdings Corp. ("Accellent"), announced results for the three months ended March 31, 2007.

First Quarter 2007 Financial Results

Net sales decreased 8% to $111.5 million in the first quarter of 2007 compared with $121.7 million in the corresponding period of 2006. Sales were negatively impacted approximately 5% due to the previously disclosed ramp-down of a specific product line and approximately 4% due to orthopaedic end market conditions. Sequentially, sales improved 3% during the first quarter 2007 in comparison with the three months ended December 31, 2006.

The net loss for the first quarter of 2007 was $85.7 million compared to a net loss in the corresponding period of 2006 of $6.7 million. The 2007 net loss includes a non-cash charge for impairment of goodwill and other intangible assets of $81.1 million incurred as a result of reduced growth expectations in the orthopaedic business, and a non-cash credit to compensation of $1.9 million related to the valuation of stock options. The 2006 net loss included non-cash inventory step-up charges of $6.4 million related to the 2005 acquisition of the Company by Kohlberg Kravis Roberts & Co. L.P. ("KKR") and Bain Capital ("Bain") and a $3.5 million gain on derivative instruments.

Adjusted EBITDA for the three months ended March 31, 2007 was $21.9 million or 19.6% of sales compared to Adjusted EBITDA of $25.7 million or 21.1% of sales in the corresponding period of 2006. Adjusted EBITDA declined due to lower sales volume, partially offset by lower selling, general and administrative expenses.

Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the financial statements accompanying this press release.

Conference Call

Ken Freeman, Executive Chairman, and Stew Fisher, Executive Vice President and Chief Financial Officer, will discuss first quarter results in a conference call scheduled for today, May 14, 2007 at 5:00 p.m. Eastern Daylight Time. The teleconference can be accessed live on the Internet through the Investor Relations section of the Accellent website at www.accellent.com or by calling [phone] pass code 33422199. Please visit the website or dial in 10 to 15 minutes prior to the beginning of the call to download and install any necessary audio software. A replay of the conference call will be available via www.accellent.com or by telephone at [phone] pass code 53058206.

About Accellent

Accellent Inc. provides fully integrated outsourced manufacturing and engineering services to the medical device industry in the cardiology, endoscopy and orthopaedic markets. Accellent has broad capabilities in design & engineering services, precision component fabrication, finished device assembly and complete supply chain management. These capabilities enhance customers' speed to market and return on investment by allowing them to refocus internal resources more efficiently. For more information, please visit www.accellent.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. All statements included herein, other than statements of historical fact, may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the risk factors contained in the Company's Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission on March 13, 2007. All forward-looking statements are expressly qualified in their entirety by such factors.

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(1) EBITDA and Adjusted EBITDA presented in this press release are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. EBITDA and Adjusted EBITDA are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity.

EBITDA represents net income (loss) before net interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to give effect to unusual items, non-cash items, the pro forma effect of acquisitions as if they had taken place at the beginning of the periods covered by the covenant calculation and other adjustments, all of which are required in calculating covenant ratios and compliance under the indenture governing our senior subordinated notes and under our senior secured credit facility. For the periods presented, Adjusted EBITDA includes adjustments for: restructuring and other related charges, impairment of goodwill and other intangible assets, gains and losses from derivative instruments, gain on sale of property, non-operating currency transaction losses, certain stock compensation related charges, severance, write-off of inventory step-up, executive relocation, CEO search costs, non-cash consulting expenses and management fees.

We believe that the presentation of EBITDA and Adjusted EBITDA is appropriate to provide additional information to investors about the calculation of certain financial covenants in the indenture governing our senior subordinated notes and under our senior secured credit facility. Adjusted EBITDA is a material component of these covenants. We also present EBITDA because we consider it an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of high yield issuers, many of which present EBITDA when reporting their results.

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