ORTHOCELL LIMITED — Capital/Financing Update 2014

Aug 11, 2014

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Orthocell generates first royalties from China

• Royalties generated from first sales of Ortho-ACI[TM] in China

• Orthocell receives final tranche of licence payment

Perth, Australia; 12 August 2014: Regenerative medicine company Orthocell Limited is pleased to announce it has commenced generating royalties from Grandhope Biotech under the licensing agreement which marks the successful transfer of the Ortho-ACI technology and its first use in Chinese patients. Grandhope licensed the rights to Orthocell’s Ortho-ACI product in China in 2013 and has developed a dedicated facility and marketing group to support the launch of the product in China.

“Our first royalty’s from our Chinese partners is a significant milestone for Orthocell by establishing our presence in China and also providing a revenue stream for the company,” said Orthocell Managing Director Paul Anderson.

Ortho-ACI is a treatment for the regeneration of damaged knee and ankle cartilage in humans using a patient’s own healthy cartilage cells, which are harvested, grown in a laboratory and reimplanted into a patient.

With an ageing population of more than a billion people, Orthocell sees China as a growing market for life changing regenerative medicines.

“Our licensing agreement with Grandhope provides us with a further pathway into the Chinese market for our other products should we choose to take advantage of the relationship,” Mr. Anderson said.

The Company has also received the final tranche of the licence payment under the agreement. The agreement with Grandhope involved an up-front cash payment to initiate the license and a further payment on the successful transfer of the technology and first use in patients with ongoing royalty payments on product sales. The fixed licence fee under this agreement has now been received in full by Orthocell.

Grandhope Biotech is a biotechnology company that develops, manufactures and markets regenerative medical devices for the treatment of damaged tissue and organs. The company is based in Guangzhou and is listed on the Shenzhen Stock Exchange.

For more information, please contact:

General enquiries

Paul Anderson Orthocell Limited, Managing Director P: (08) 9360 2888 E: paulanderson@orthocell.com.au

Media enquiries Gavin Lower Buchan Consulting P: (03) 8866 1215 / 0414 796 726 E: glower@buchanwe.com.au

About Orthocell Limited

Orthocell is a commercial-stage, regenerative medicine company focused on developing products for a variety of tendon, cartilage and soft tissue injuries. Orthocell’s portfolio of products include TGA-approved stem cell therapies Autologous Tenocyte Implantation (Ortho-ATI™) and Autologous Chondrocyte Implantation (Ortho-ACI™), which aim to augment, repair, replace or regenerate areas which have been damaged by disease, injury or the ageing process. The Company’s other major product is Celgro™, a collagen medical device which facilitates tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications and is being readied for first regulatory approval.