Cord Blood Registry Reports Triple-Digit Growth Amid Second Legal Victory and News of Paralyzed Woman Walking

SAN BRUNO, Calif., December 30 /PRNewswire/ -- Coming to the end of a year of geometric growth, Cord Blood Registry (CBR), the world's leading newborn stem cell bank, has won a second decisive victory against PharmaStem Therapeutics, Inc.'s claims of patent infringement relating to CBR's newborn stem cell (cord blood) preservation business.

U.S. District Judge Gregory M. Sleet, who had already overturned a multi-million dollar jury verdict awarded to PharmaStem Therapeutics, Inc., dealt a further setback when he denied PharmaStem a second trial in the patent case. Judge Sleet ruled that CBR did not infringe on either of the two patents that the jury relied on in their October 2003 verdict. "There was no legally sufficient evidentiary basis for a reasonable jury to find that the companies infringed the patents," Sleet wrote in an eight-page opinion. Both PharmaStem patents are currently under re-examination by the Patent and Trademark Office.

"We are pleased that the court recognizes the overwhelming evidence presented and has denied a new trial," says Stephen Grant, VP and co-founder of CBR. "The decision enables us to keep our focus on the rapidly expanding market demand and the high quality, lifesaving service that we provide."

CBR's 35th transplant is scheduled to take place this week in California. As of December 2004, CBR had provided more clients with stem cells for medical therapies than all other family cord blood banks combined. Studies have shown that survival rates can more than double when genetically related newborn stem cells are used for patients compared to unrelated newborn stem cells. "Our service is a critical part of giving families access to the best medical treatments available," says Grant. "The PharmaStem patents threatened to require a licensing fee for each unit stored, which would have increased costs to families."

Derived from the blood remaining in the umbilical cord following birth, newborn stem cells are used to treat serious diseases such as leukemia, lymphoma, and sickle cell anemia. Because it can only be collected at birth, a growing number of expectant parents are arranging to store their newborns' stem cells as both "biological insurance" in case of future illness and as a "biological resource" to take advantage of new treatments using their regenerative power for treating diseases like diabetes and Alzheimer's, and repairing damage from heart attack, stroke, and even spinal cord injury.

Recently, newborn stem cells made headlines in the highly publicized story of a paralyzed 37-year-old South Korean woman who was able to walk for the first time in 20 years after being treated with newborn stem cells. (Visit www.cordblood.com to see more about this story.) This and other news about emerging therapies has lead to an increase in demand for CBR's cord blood banking service. "Our enrollments are up more than 100% over this time last year," says Johnnie Domingue, CBR's CFO and COO.

About Cord Blood Registry
Cord Blood Registry is the leader in newborn stem cell processing and cryopreservation for familial use in transplantation and regenerative medicine. The stem cells preserved by CBR are collected immediately after the birth of a newborn and are then available to be used in treatments for the newborn, siblings, and any compatible genetic family member. Once transplanted, the cells have the ability to repair damaged or diseased tissues with little risk of rejection and increased long-term survival. The companyıs research and development is focused on advancing the collection, processing, and storage methods to optimize quality and cell yield. Additionally, CBR facilitates collection of donated research samples, available for the nearly 200 research programs worldwide that are focused on stem cell expansion and cell-based therapies. For more information visit http://www.cordblood.com, or call 1-888-CORD BLOOD. Cord Blood Registry is a registered trademark of Cbr Systems, Inc.

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