All contents herein are the sole property of MEDIPOST Co., Ltd. Any reproduction or distribution of this document without the written consent of

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1 All contents herein are the sole property of MEDIPOST Co., Ltd. Any reproduction or distribution of this document without the written consent of MEDIPOST Co., Ltd is prohibited. Copyright c MEDIPOST. 1

2 Contents 1 Overview 2 Cord blood Banking 3 Adult Stem Cell Drugs 4 Investment highlights Appendix 2

3 Overview Company overview General Shareholding Name CEO MEDIPOST Yoon-Sun Yang, M.D., Ph.D. Shareholder Breakdown (Nov 18, 2011) Yoon-Sun Yang 7.84% Date of encorporation June 2000 Others 92.16% Total number of shares: 7,146,051 Listing Contributed equity Market Capitalization Number of employees Business Url Address Kosdaq on July 29, 2005 (078160:KS) 3.2 (KRW billion) 1,031 (KRW billion)(as of Oct 31, 2011) 124 (R&D 60) Cord Blood Banking, Adult Stem Cell Drugs, Supplements Etc , Seocho3-dong, Seocho-gu, Seoul, , Korea Key management Dr. Yoon-Sun Yang, C E O Clinical pathology at Samsung Medical Center Professor of medical school at Sungkyunkwan University Dong-Jin Hwang, President President and CEO of Macrogen Financial Supervisory Service of Korea Dr. Won-Il Oh, Vice Pesident Clinical pathology at ASAN Medical Center Assistant professor of the medical school at Sungkyunkwan University Jang-Won Lee, Executive Director Dong Yang Life Insurance 3

4 Business I - Cord blood Banking 1 Cord blood¹ Banking Application Market shares of Cord blood bank Leukemia Intractable Blood Diseases Others (14%) Ability for Self-Renewal Cord-Blood (Stem Cells) Ability to differentiated into multiple lineages (blood, nerve cells, heart cells) Sewon Cellontech (26%) MEDIPOST (40%) Lifecode (6%) Chabio&Dios (14%) Source to treat Adult diseases Ability to migrate to Area of injury/defect Cerebral Palsy Pediatric Diabetes Source : The Ministry of Health and Welfare (2010) 1.Cord blood is blood that remains in the placenta and in the attached umbilical cord after childbirth. It contains stem cells, thus can be used to make medicine for incurable illnesses without political and religious opposition to human cloning. 4 4

5 Business II - Adult Stem Cell Drugs 1 Global Stem Cell Market Forecast ( Millions USD ) Most likely Year Best Drugs Cord Blood Banking Drugs Develop Tool Sum Worst , , , , , , , , , , , ,124.7 CAGR 35.8% 65.7% 9.0% 52.5% 29.2% 19.8% ( Kalorama Information, Stem Cell Markets, 2008 ) 5 5

6 Business II - Adult Stem Cell Drugs 2 Stem Cell Market Growth Rate Stem Cell Drugs market growth rate ( Millions USD ) Stem Cell % CAGR Umbilical Cord Blood Stem Cell Embryonic Stem Cell Adult Stem Cell Sum Stem Cell Drugs market Regional growth rate Regional % CAGR Asia-Oceania Europe North America Others Sum ( A Market Insight Report, Stem Cell Research, 2007 ) 6 6

7 3 Pipelines Pipeline Indication Status CARTISTEM NEUROSTEM Cartilage Defect (Degenerative Osteoarthritis) Stroke Completed phase III clinical trial US FDA cleared phase I/IIa clinical trial Biologics Application Licence (BLA) on file in KFDA Researcher-initiated clinical trial completed. NEUROSTEM -AD Dementia (Alzheimer s disease) Clinical trial phase I in progress PROMOSTEM Engraftment enhancing agent for HSCT (hematopoietic stem cell transplantation) Completed clinical trials phase I/ II PNEUMOSTEM Pediatric lung disease (Bronchopulmonary dysplasia BPD) Clinical trial phase I in progress 7

8 4 Pipeline 1. CARTISTEM Allogeneic hucb_msc drug for cartilage degeneration or defect Major Indication: Degenerative Osteo-Arthritis Viscous Gel Mix with cells Application by open surgery Target market of Cartistem - Total Knee Replacement market - Patients who have a serious cartilage defect before a surgery, such as TKR Background underlying Cartistem development - Mass production of hucb-mscs enabled - hucb-mscs expected to differentiate into chondrocytes - Faithful regeneration of hyaline cartilage in animal defect models - No immune-related toxicity 15 8

9 4-1 Pipeline 1. CARTISTEM Before CARTISTEM treatment Clinical trial phases I, II, and III completed Awaiting sales approval from the Korea Food & Drug Administration Signed a licensing agreement with Dong-A Pharmaceutical (Dec 2010) US FDA cleared phase I/IIa clinical trial (Feb 2011) Full coverage with well regenerated cartilagenous tissue Ready-made Products Patents : Granted in US, China, Europe & Korea Pending in Japan 9 9

10 5 Pipeline 1. NEUROSTEM NEUROSTEM -AD for Alzheimer s Disease Parenchymal injection targeting the affected area Clinical trial phase I in progress (NOV 2010) - Phase I for Alzheimer s disease Backgrounds underlying Neurostem - AD development - Neuro-protective function under neurodegenerative environment Patents : Granted in Korea Pending in others Target market size of Neurostem - Alzheimer s disease : worldwide 700b/n USD 18 10

11 7 Pipeline 1. PNEUMOSTEM PNEUMOSTEM for Bronchopulmonary Dysplasia Intratracheal delivery of Pneumostem Clinical trial phase I in progress (July 2010) Backgrounds underlying PNEUMOSTEM development Regeneration of disrupted alveolar tissue Modulation of inflammation Patents : Granted in Korea & Singapore Pending in others Damaged lung in the bronchopulmonary dysplasia model Regeneration of lung tissues & reduced inflammatory reactions (Animal exp. and analysis performed at Pediatrics Dept., SamSung Medical Center) 11

12 Investment highlights Strength 1 Platform technology for potent adult stem cells of hucb-mscs 2 Mass production of cellular therapies 3 Patents granted or pending globally 4 Expansion of applicability of hucb-mscs for various hard-to-treat indications 12

13 Appendix 1 Financial highlights Historical financials (Thousands of USD) Sept 30, 2011 (Nine Months Ended) Sales 10,916 9,269 15,622 17,638 COGS 4,298 3,522 5,059 5,143 Gross Profit 6,618 5,747 10,563 12,494 Gross Profit Rate 61% 62% 68% 71% Operating Income ,374 2,545 Operating Income Rate -6% -6% 9% 14% Net Income ,658 4,840 Net Income Rate 2% 8% 11% 27% * 1Half figures were adjusted under K-IFRSs * Nine Months Ended figures were adjusted under K-IFRSs All contents herein are the sole property of MEDIPOST Co., Ltd. Any reproduction or distribution of this document without the written consent of MEDIPOST Co., Ltd. is prohibited. Copyright MEDIPOST. 13

14 2 Financial highlights Historical financials (cont d) (Thousands of USD) Sept30,2011 Assets Current Assets 21,106 25,667 21,948 18,364 Non-current Assets 23,846 30,145 38,598 44,233 Total Assets 44,952 55,812 60,546 62,597 Liabilities Current Liabilities 2,481 2,129 3,407 4,038 Non Current Liabilities 5,937 9,137 7,620 5,475 Total Liabilities 8,418 11,266 11,027 9,511 Total Stockholders Equity 36,534 44,546 49,519 53,086 (Thousands of USD) Sept 30, 2011 (Nine Months Ended) Cash flows from operating activities ,862 1,382 (Thousands of USD) Sept 30, 2011 (Nine Months Ended) R&D Expense (total ) 7,037 6,179 8,042 6,142 All contents herein are the sole property of MEDIPOST Co., Ltd. Any reproduction or distribution of this document without the written consent of MEDIPOST Co., Ltd. is prohibited. Copyright MEDIPOST. 14

15 3 Medipost s Drug Source Material: human Umbilical Cord Blood-derived Mesenchymal Stem Cells (hucb-mscs) 1. The most primitive stem cells among any MSCs: Hypo-immunogenic and have not been influenced by environmental factors during adulthood 2. Easy accessibility and easy surgical applicability 3. Superior functionality compared to other types of MSCs (e.g. bone-marrow or fat derived) ) 확보 MEDIPOST s GMP (Good Manufacturing Practice) Facility in Gu-Ro (completed November 2006) 15 15

16 4 Advantages of using Allogeneic Stem cells Allows industrial-scale mass manufacturing and off-the-shelf products Selection of high performance lot Selection of the most suitable cell lot through potency marker screening specific for a given indication (not influenced by existing condition and/or disease history of the patient as in autologous use) Quality control/assurance Achieves high standard of cell viability, potency and number via standardized culture conditions Mass-manufacturing and storing of drug substance Established protocol for industrial-scale manufacturing will benefit cost pricing. Drug product can be released upon drug order Allogeneic product: not influenced by existing condition and/or disease history of the patient Consistent and predictable clinical efficacy (meets the requirements to be a drug product) 16 16