Bone transplantation is associated with two major problems: the sterility in particular with respect to HIV, and the osteoinductivity of the transplant. We describe a procedure which sterilizes the graft while keeping the osteoinductive potential of the bone. After harvesting the material the bone is immediately deep frozen (-80 degrees C), and then freeze dried. To sterilize the bone it is treated with gamma-radiation at a dose of 2.5 Mrad in an argon atmosphere. All grafts are subsequently stored in argon at -80 degrees C.