2320 NW 66th Court Gainesville, FL 32653

(800) 392-2832 www.exac.com

IR Contact: Julie Marshall (305) 451-1888

Exactech 2014 Q1 Revenue $61.4 Million. Net Income Down 2% to $4.1 Million. Diluted EPS $0.29 vs. $0.30

Results Affected by Weak Euro and Japanese Yen.

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Company DescriptionExactech is a pure play orthopaedic competitor gaining market share in the rapidly expanding global biomedical device industry. The company's products are used in the restoration of bones and joints that have deteriorated as a result of injury or disease such as arthritis.

Exactech develops, manufactures, markets, distributes and sells its orthopaedic implant devices, including knee, shoulder and hip implant systems, surgical instrumentation, spine products and biologic services to hospitals and physicians in the U.S. and over 30 markets in Europe, the Americas, Asia and the Pacific. International sales represented 33% of total 2014 company sales.

Founded and led by an orthopaedic surgeon, the company has built its success on its customer-centric culture. Design assistance and feedback from its surgeon customers have helped Exactech develop a pipeline of innovative products that improve patient outcomes.

FDA Cleared Products and Services In 2014 the company’s rapidly growing Equinoxe® shoulder implant system became the company’s largest segment with revenues of $79.0M. The company attributes the growth of the Equinoxe® system to continued surgeon success, a robust pipeline of enhancements and reduced operating room time saving thousands of dollars per case for hospitals. Shoulder sales represented 31.8% of company revenue in 2014.

Knee systems that meet the needs of hospitals and surgeons have been a traditional hallmark of the company. Exactech’s Logic knee system, has strong acceptance from its surgeon customers. Logic and the earlier generation Optetrak® differentiated knee implant products provided 31.6% of the company's revenue in 2014.

Hip products, which accounted for 17.5% of company revenues in 2014, use materials such as ceramic bearing surfaces and enhanced polyethylene for industry leading wear performance. The most recently released Alteon tapered wedge hip stem has been enthusiastically embraced by the company’s surgeon customers. Hip sales represented 17.5% of sales in 2014.

Exactech’s biologic and spine products together represented 9.5% of 2014 revenue. The company began distribution of biologic tissue materials in 1998 and entered the spine market with an acquisition of a spine products company in early 2008.

May 22, 2015

Investment Profile Nasdaq: EXAC

EXAC - NasdaqClosing Price (5/21/15) $21.41 Market Cap. $301.11 mil. 52-Week Range $19.87 - $26.52 Avg Daily Trading (3Mo.) 40,757 TTM EPS (diluted) $1.18 P/E Ratio (ttm) 18.30 Book Value per share (mrq) $15.22 2014 Revenue $248.4 mil. 2014 Net Income $16.5 mil. Total Assets (3/30/15) $270.5 mil. Total Debt (3/30/15) $22.5 mil. Diluted Shares* 14,064 mil. Est. Public Float 9.53 mil. Insider Ownership 28.48% Institutional Ownership 61.70% Fiscal Year End Dec. 31

*3-mos. weighted avg number shares outstanding

Highlights4.28.15Exactech Q1 revenue $61.4M. Net income down 2% to $4.1M affected by weakened Euro and Japanese yen. Diluted EPS $0.29 vs. $0.30.

2.17.152014 revenue up 5% to $248.4M; Net income up 7% to $16.5M. EPS $1.18; Q4’14 rev up 3% to $63.3M. NI up 11% to $5.1M, EPS $0.36

1.20.15Exactech acquires BlueOrtho, industry leading computer assisted surgical technology company.

10.21.14 Exactech Q3 rev up 4% to $57.9 million. Net income down 6% to $3.0 million due to currency losses. Q3 diluted EPS $0.21 vs. $0.23.

7.28.14Exactech Q2 rev up 6% to $63.9M. NI up 12% to $4.2M. EPS $0.30 vs. $0.27. YTD rev up 6% to $127.2M. NI YTD $8.4M, EPS $0.60 vs. $0.56.

04.21.14EXAC Q1 rev up 7% to record $63.3M. NI up 9.8% to $4.2 million. Diluted EPS $0.30 vs. $0.29.

The information contained herein is believed to be accurate and is based upon sources which are considered reliable but are not guaranteed by Hawk Associates or the company mentioned. This information is subject to change without notice. Hawk Associates is not a registered broker dealer. Neither Hawk Associates nor the company mentioned assumes any responsibility for the information contained herein. The company featured in this report is a client of Hawk Associates, Inc. This does not represent an offer to buy or sell any security. This profile is protected by applicable copyright laws. No permission is granted to copy, distribute, modify, or post any text, graphics, design or logos.

Investment Profile NASDAQ: EXAC

The OutlookOn a constant currency basis, total sales for the first quarter were flat with the first quarter a year ago. Extremity revenue rose 7% to $21.1M, a 9% constant current increase. Knee implant revenue was down 10% to $18.4M, a 6% constant currency decrease. Hip implant revenue increased 1% to $11.0M, a 6% constant currency increase. Biologic and spine revenue decreased 12% to $5.1 M. Other revenue decreased 10% to $5.8 M.

Worldwide sales decreased 3% to $61.4M. U.S. sales were down 1% to $41.2M compared with $41.6M in Q1’14. International sales decreased 7% to $20.1M. U.S. sales represented 67% of total sales. On a constant currency basis, international sales increased 3%. The company said it expects more foreign currency challenges in Q2.

The company said Q1 sales were softer than expected in part due to sales organization changes and improvement initiatives that are expected to deliver positive results in the second half of 2015. The company said major product development projects for revision hip, knee and shoulder systems remain on track and the company plans to be doing surgeries with all three revision systems in the second half of 2015.

Gross margins in Q1 decreased to 70% from 71% due to an expected pricing impacts. Total operating expenses for the quarter decreased 4% to $36.7M and as a percentage of sales were 60%, even with Q1’14. G&A expenses increased 1% in the first quarter to $5.8 M and sales and marketing expenses decreased 8% to $21.9 M. R&D expenses increase 8% reflecting significant ongoing investment in new product pipeline and integration of the Blue Ortho acquisition.

2015 GuidanceExactech 2015 revenue guidance is $248 - $254 million and diluted EPS target is $1.18 – $1.24. For Q2 2015, the company anticipates sales of $61 -$63 million and diluted EPS of $0.26 - $0.28. This guidance has been adjusted for the Q1 results as well as anticipated full year impact of constant currency exchange rates. foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. The EPS estimates are the company’s targets, not predictions of actual performance.

Analyst CoverageWilliam Plovanic, Canaccord Adams (847) 864-1137

Jeff Johnson, Robert W. Baird (414) 765-7062

Jennie Tsai, Gabelli & Company (914) 921-8436

Mark Landy, Northland Capital Markets (917) 226-2445

James Sidoti, Sidoti & Company, LLC (212) 453-7056

Investor Web Sites: HawkAssociates.com and EXAC.com

Q1 2015 Segment Performance• Extremity implant revenue rose 7% to $21.1 M

• Knee implant revenue decreased 10% to $18.4 M

• Hip implant revenue was up 1% to $11.0 M

• Biologic/Spine revenue decreased 12% to $5.1M

• Other revenue decreased 10% to $5.8 M

Risk Factors• Acceptance of new products • Significant resources of larger

competitors • Government taxes and regulations • Third party manufacturers • Foreign exchange volatility

2014 Growth RatesExactech participates in the $46 billion worldwide market for biomedical devices, targeting very large market segments for hip and knee implants as well as spine, biologics and the fastest growing segment, extremities. Source: OrthoWorld-Orthopaedic Industry Annual Report 2015

$46 Billion Global Biomedical Device Market

2014

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