ThermoGenesis Announces Completion of Second Source Manufacturing for AXP(R) Bag Sets

RANCHO CORDOVA, Calif., Aug. 4 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of products and services that process and store adult stem cells, said today it has completed the scale up of manufacturing for AXP AutoXpress (AXP) disposable bag sets at its second source supplier, ATEK Medical. The AXP is a proprietary system used for the processing of stem cells from cord blood.

"We reviewed a number of potential bag set suppliers and selected ATEK based on their high level of expertise and strong track record of producing Six Sigma quality, state-of-the art disposables and medical devices. We are collaborating closely with ATEK on processes and procedures to ensure that we have access to high quality, reliable production as we continue to expand the market for the AXP. Moreover, with production occurring at ATEK's FDA-approved, ISO 13485 certified facility we expect to achieve meaningful cost savings in the manufacturing of the product," said J. Melville Engle, Chief Executive Officer of ThermoGenesis.

"With the addition of ATEK, we have easily doubled our suppliers' capacity to produce bag sets, which is essential for our fiscal 2011 growth strategy," Engle continued. "We have added several new AXP distributors who are complementing our strong relationship with GE Healthcare and addressing new markets in Asia and Europe. ATEK will facilitate our ability to meet what we believe will be a continuing increase in demand for the product," Engle added.

"ATEK has significant experience with complex medical device manufacturing and is the only contract manufacturer of Class II and III finished medical devices and disposables in the country that was previously a medical device OEM. We are delighted to be working with ThermoGenesis and having the opportunity to demonstrate our ability to produce the highest quality medical device products in the market," said Dave Mabie, Vice President, Business Development for ATEK.

About ThermoGenesis Corp.

ThermoGenesis Corp. (www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the manufacture, preservation and delivery of cell and tissue therapy products. These include:

• The BioArchive® System, an automated cryogenic device, is used by cord blood stem cell banks in more than 30 countries for cryopreserving and archiving cord blood stem cell units for transplant.
• AXP® AutoXpress Platform (AXP), a proprietary family of automated devices that includes the AXP and the MXP MarrowXpress and companion sterile blood processing disposables for harvesting stem cells in closed systems. The AXP device is used for the processing of cord blood. The MXP is used for the preparation of cell concentrates, including stem cells, from bone marrow aspirates in the laboratory setting.
• The Res-Q 60 BMC (Res-Q), a point-of-care system that is designed for the preparation of cell concentrates, including stem cells, from bone marrow aspirates.
• The CryoSeal® FS System, an automated device and companion sterile blood processing disposable, is used to prepare fibrin sealants from plasma in about an hour. The CryoSeal FS System is approved in the U.S. for liver resection surgeries. The CryoSeal FS System has received the CE-Mark which allows sales of the product throughout the European community.

This press release contains forward-looking statements, and such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual outcomes to differ materially from those contemplated by the forward-looking statements. Several factors, including timing of FDA approvals, changes in customer forecasts, our failure to meet customers' purchase order and quality requirements, supply shortages, production delays, changes in the markets for customers' products, introduction timing and acceptance of our new products scheduled for fiscal years 2010 and 2011, and introduction of competitive products and other factors beyond our control, could result in a materially different revenue outcome and/or in our failure to achieve the revenue levels we expect for fiscal 2010 and 2011. A more complete description of these and other risks that could cause actual events to differ from the outcomes predicted by our forward-looking statements is set forth under the caption "Risk Factors" in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission from time to time, and you should consider each of those factors when evaluating the forward-looking statements.

SOURCE ThermoGenesis Corp.