LFB completes conversion of all acquired preferred stock

GTC Biotherapeutics, Inc. (“GTC”, NASDAQ: GTCB) announced that LFB Biotechnologies, a wholly owned subsidiary of LFB S.A. (Laboratoire Français du Fractionnement et des Biotechnologies S.A., Les Ulis, France) and a strategic shareholder in GTC, has converted the convertible preferred stock it previously purchased in November 2009 under the terms described in the financing agreements approved by GTC shareholders in July 2009 into a total of 5.3 million shares of common stock. This completes the conversion into common shares of all convertible preferred stock acquired by LFB in 2009.

Portfolio Update

GTC plans to advance its recombinant human factor VIIa program into a Phase I clinical study in the first half of 2010 and its alpha-fetoprotein program into a Phase II study in Myasthenia Gravis in the second half of 2010 after securing a partner for that program. Building upon the 2009 FDA approval of ATryn^®, GTC’s recombinant human antithrombin, GTC is collaborating with its US commercialization partner, Lundbeck Inc., to develop a protocol for a pivotal study of patients with acquired antithrombin deficiencies in cardiac surgery. GTC aims to initiate this clinical trial in the second half of 2010.

The proposed health care reform legislation in the US Congress includes provisions enabling the review and regulatory approval of follow-on biologics. GTC continues to develop its portfolio of monoclonal antibodies for use as follow-on biologics. The portfolio includes antibodies targeting CD20, HER2, EGFR and TNF, which currently have a market size in excess of $16 billion. Production animals for these programs are in development, and are already established for CD20 and HER2 monoclonal antibodies. In 2010, GTC plans to characterize each of these transgenically-derived proteins as they become available and to initiate non-clinical studies. GTC plans to enter into partnerships to support the clinical development and commercialization of these programs. Our objective is to commence clinical trials on the CD20 and HER2 antibodies in 2011 and 2012, respectively.