Letter from the CFO

Thank you for considering CBR as your partner in health. When you chose CBR, we are committed to providing your family with the best service and welcome any questions you may have.

Dear Expectant Parents,

Cord blood banking may be one of the most important investments your family will make, so it's important that you feel confident you've chosen the right partner.

For almost two decades, more expectant parents have entrusted their babies' cord blood to CBR than any other family bank in the world. In fact, we have banked cord blood for more than 400,000 newborns to date.

In my time with CBR, I’ve seen several cord blood banks fail. Often this means their clients' stem cells are sold to another bank and shipped to a new lab. As the mother of two, this is not how I would want my children’s cord blood handled. That’s why I recommend expectant parents consider choosing a family bank that is financially stable.

CBR’s financial success is well established. Since 1995, we've seen steady and predictable annual revenue growth. In addition, we've achieved positive cash flow from operations every year since 1999. Today, we're the largest newborn stem cell bank in the world.

I believe there are several factors that have contributed – and will continue to contribute – to the success of our company. First, we've invested in superior technology and we own a state-of-the-art laboratory and storage facility that is unparalleled in the industry. To maintain our competitive advantage and continue delivering the best possible banking experience, we regularly invest in further advancing our stem cell collection, processing, and storage methods.

These investments have paid off for our clients. Our exclusive CellAdvantage® system delivers the highest published cell recovery rate in the industry.1-3 Studies have correlated survival rates and improved outcomes with the number of stem cells used in therapy.

While our business has expanded during the past several years, we've always maintained a focus on the quality of our operations to ensure we're delivering the best possible product and client experience. No other family cord blood bank comes close to meeting our successful track record. This means, we will be here to protect your family's cord blood stem cells, now and in the future.

Thank you for your interest in CBR.

Sincerely,

Ledia Ouyang

Chief Financial Officer and CBR client