Osiris Therapeutics, Inc. (NASDAQ: OSIR), a leading cellular and regenerative medicine company focused on developing and marketing products to treat conditions in wound care, orthopaedics and sports medicine, announced today that it has received a letter from The NASDAQ Stock Market ("NASDAQ") notifying the Company that it is not in compliance with NASDAQ Listing Rule 5250 (c)(1) because its Annual Report on Form 10-K for the year ended December 31, 2015 was not filed on a timely basis with the Securities and Exchange Commission. As previously disclosed, the Company is currently in the process of (i) completing its accounting review of revenue recognition under contracts with distributors that was previously reported in its audited annual financial statements for the year ended December 31, 2014 and its unaudited interim financial statements for quarterly periods in 2015, (ii) completing amendments to certain periodic reports previously filed with the Securities and Exchange Commission (the "SEC") and (iii) transitioning to a new independent registered public accounting firm that will require additional time to conduct an audit of the Company's 2015 financial statements. The Company intends to file its Form 10-K as soon as practicable. The NASDAQ letter dated March 17, 2016 requires the Company to submit a plan within 60 days to regain compliance with NASDAQ's filing requirements for continued listing. The Company intends to submit the plan of compliance as soon as practicable. About Osiris Therapeutics Osiris Therapeutics, Inc., based in Columbia, Maryland, is a leader in researching, developing and marketing cellular regenerative medicine products that improve the health and lives of patients and lower overall healthcare costs. Having developed the world's first approved stem cell drug, Osiris works to further advance the medical field. Osiris' research and development in biotechnology focuses on innovation in regenerative medicine - including bioengineering, stem cell research and viable tissue based products. Osiris has achieved commercial success with products in orthopaedics, sports medicine and wound care, including BIO 4®, a viable bone matrix, Cartiform ®, a viable osteochondral allograft, Grafix ®, a cryopreserved placental membrane, TruSkin ™, a viable human skin allograft and Stravix ™, a durable placental allograft. Osiris, Grafix and Cartiform are registered trademarks of Osiris Therapeutics, Inc.; TruSkin and Stravix are trademarks of Osiris Therapeutics, Inc. BIO 4 is a registered trademark of Stryker Corporation (NYSE: SYK). More information can be found on the company's website, www.Osiris.com. (OSIR-G) Forward-Looking Statements This press release contains forward-looking statements. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as "anticipate," "believe," "continue," "ongoing," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project" or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. Examples of forward-looking statements may include, without limitation, statements regarding any of the following: the timing of the Company's submission of a plan of compliance to NASDAQ; the outcome of the NASDAQ listing qualification deficiency process, including the ability of the Company to successfully maintain its NASDAQ listing; the outcome of the restatement, including the materiality, significance, nature, subject matter, timing or quantitative effects of the Company's restated financial statements; the timing of the transition to a new independent registered public accounting firm; the timing of the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and any anticipated conclusions of the Company, the Audit Committee or management. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the section entitled "Risk Factors" in our Annual Report on Form 10-K and other Periodic Reports filed on Form 10-Q, with the United States Securities and Exchange Commission. Accordingly, you should not unduly rely on these forward-looking statements. We undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to reflect the occurrence of unanticipated events.