Arteriocyte Receives $509,000 Grant from Cleveland Clinic's Global Cardiovascular...

Arteriocyte Receives $509,000 Grant from Cleveland Clinic's Global Cardiovascular Innovation Center

CLEVELAND--(Business Wire)--Arteriocyte, a clinical stage biotechnology company developing
stem cell therapies for ischemic diseases, has received a $509,000
subgrant award to further the development of its technology. The
funding, received as part of a $60 million Third Frontier award to the
Cleveland Clinic-led Global Cardiovascular Innovation Center (GCIC)
initiative, will allow Arteriocyte to initiate Phase II clinical
evaluation of its lead stem cell product to be used in chronic
coronary ischemia.

GCIC is a multi-institutional initiative that includes major
research institutions in Ohio including Cleveland Clinic, Case Medical
Center, The Ohio State University, University of Cincinnati and
University of Toledo. Arteriocyte is one of 12 Ohio companies
participating as research partners under subcontract to Cleveland
Clinic in the GCIC project.

"We are pleased to be collaborating with the Cleveland Clinic to
advance cardiovascular technology development and commercialization,"
said Donald Brown, Arteriocyte's Chairman. "As Arteriocyte prepares to
enter Phase II clinical evaluation of our lead stem cell therapy
(ACY001), the Third Frontier support and collaboration with Cleveland
Clinic's GCIC will help to accelerate our entry into the company's
next stage of clinical development."

"Through Ohio's Third Frontier Project, substantial investments
have been made that are contributing to the growth of the State's
bioscience industry," said Lt. Governor Lee Fisher, who also serves as
a Director of the Ohio Department of Development and the Chair of the
Third Frontier Commission. "Arteriocyte is on an accelerated path to
success, capitalizing on those investments and the preeminence of
Northeast Ohio's cardiovascular research and clinical capabilities
exemplified by the Cleveland Clinic."

About Arteriocyte

Arteriocyte, a clinical stage biotechnology company located in
Cleveland, Ohio and Hopkinton, Massachusetts, is developing
proprietary, non-embryonic stem cell-based therapies targeted for the
treatment of ischemia, based on technology developed at Case Western
Reserve University and University Hospital's Case Medical Center,
utilizing stem cells to stimulate angiogenesis (new vessel growth).
Arteriocyte's ultimate goal is to develop cellular therapies using
multiple sources of adult derived stem cells (marrow, peripheral and
cord blood) to treat diseases where ischemia is the cause or a
contributing factor in the disease progression. In October 2007,
Arteriocyte partnered with DW Healthcare Partners and Comerica to
create Arteriocyte Medical Systems Inc., in order to develop and
acquire novel medical devices and point of care surgical solutions to
improve patient outcomes. Arteriocyte Medical Systems recently
announced a broad Strategic Partnership with Medtronic, including the
acquisition of the Magellan Platelet Business and a worldwide
exclusive distribution agreement in the Cardiac Surgery Market that
includes promotion by 80 representatives spread throughout North
America and Europe for the Magellan system, which is in over 400
surgical centers worldwide.

About the Third Frontier Project

Governor Taft unveiled The Ohio's Third Frontier Project in
February 2000 which is the state's largest-ever commitment to
expanding Ohio's high-tech research capabilities and promoting
innovation and company formation, while creating high-paying jobs for
generations to come. The 10-year, $1.6 billion initiative is designed
to build world-class research capacity, support early stage capital
formation and the development of new products, and finance advanced
manufacturing technologies to help existing industries become more
productive. Through Ohio's Third Frontier Project, additional federal
and private sector support can boost the total investment to more than
$6 billion.

About GCIC

The Global Cardiovascular Innovation Center (GCIC) is a $250
million research and product development consortium established by the
Cleveland Clinic to significantly accelerate the commercialization of
cardiovascular products. Led by Steve Nissen, M.D, the GCIC is
enlisting a team of national leaders in cardiovascular (CV) research,
technology development, and investing. The GCIC has been seeded with a
$60 million grant from the State of Ohio.

About Cleveland Clinic

Cleveland Clinic, located in Cleveland, Ohio, is a not-for-profit
multispecialty academic medical center that integrates clinical and
hospital care with research and education. Cleveland Clinic was
founded in 1921 by four renowned physicians with a vision of providing
outstanding patient care based upon the principles of cooperation,
compassion and innovation. U.S. News & World Report consistently names
Cleveland Clinic as one of the nation's best hospitals in its annual
"America's Best Hospitals" survey. Approximately 1,800 full-time
salaried physicians and researchers at Cleveland Clinic and Cleveland
Clinic Florida represent more than 100 medical specialties and
subspecialties. In 2006, there were 2.9 million outpatient visits to
Cleveland Clinic. Patients came for treatment from every state and
from more than 80 countries. There were nearly 54,000 hospital
admissions to Cleveland Clinic in 2006. Cleveland Clinic's Web site
address is www.clevelandclinic.org.

Arteriocyte
Don Brown, 617-794-2711
dbrown@arteriocyte.com
OR
GCIC
Brian Kolonick, 216-444-0898
kolonib@ccf.org
OR
The State of Ohio
Niki Jaworski, 614-466-9161
Ohio Department of Development

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