Medgenics announces unaudited half-yearly results for the six months ended 30 June 2009

Medgenics (AIM:MEDG) (AIM:MEDU) is pleased to announce its unaudited half-yearly results for the six months ended 30 June 2009.

Highlights for the period

• Phase I/II safety and efficacy clinical trial with EPODURE demonstrating positive results.
• A Phase I/II clinical trial in the low dosage cohort has documented safety and efficacy of EPODURE as a sustained anaemia therapy lasting up to 11 months from a single treatment in kidney disease patients.
• Unprecedented milestones reached by Phase I/II patient: 12 months without an erythropoietin (EPO) injection, 11 months of anaemia relief from a single treatment of Biopump.
• Advanced discussions underway with several major Pharmaceutical companies regarding possible investments in both new and existing Biopump protein applications.

Financial Summary (unaudited)

• Award of $1.3 million through Israeli government grant.
• Completion of fund raising totalling $570,000 in convertible debentures and approximately $408,000 in warrant exercise programme.
• Net loss after tax for the six month period of $2.23 million (2008: $2.97 million) primarily as a result of furthering the Phase I/II clinical trial of EPODURE.

• R&D costs for the six month period of $0.99 million (2008: $1.63 million) and general and administrative costs of $1.2 million (2008: $1.39 million).
• Cash, cash equivalents and short-term investments at 30 June 2009 of $0.05 million (at 30 June 2008: $1.74 million).
• Medgenics continues to seek further funding to renew patient recruitment.

Dr. Andrew Pearlman, Chief Executive Officer of Medgenics, said:

“During the first half of 2009 Medgenics has drawn growing encouragement from the continuing positive results of the Biopump anaemia study. EPODURE has demonstrated months of continuous treatment in nearly all the patients, with one who will shortly be celebrating an unprecedented full year of sustained protein therapy from a single administration. Besides demonstrating the potential of EPODURE as an anaemia treatment, we believe these results also provide powerful proof of the broader concept of Biopump as a method of sustained protein therapy. We are pleased by the significant progress with potential partners and institutional investors which gives us great hope that this will yield concrete results in the coming months. The raising of nearly $1 million of additional operating funds through the issuance of convertible debentures and warrant exercises was also an important development. Meanwhile, the Company continues its focused efforts to raise additional funds in the coming months to enable it to support its existing operations, expand the clinical trial and its other operations and to realize the potential of the great opportunities it now has."