F A C T S H E E T For information contact: Joni Morford, Communicore 714/721-8081 jmorford@communicore.com ORQUEST, INC. Orquest, Inc. was founded in 1994 to drive a new paradigm in orthobiologics by developing a portfolio of innovative and proprietary products for bone and cartilage regeneration. Orthobiologics will enable physicians to restructure existing therapies in a less invasive manner thereby increasing patient satisfaction and reducing therapy costs. Orquest's strategy is to engineer matrix-based products which promote the body's natural remodeling and tissue regeneration processes. Tailored to specific clinical indications, Orquest's products integrate the most effective biomaterials and growth factors. The Company is targeting the major growth segments in orthopedics (spine and trauma). Recent Milestones * Initiated multi-center European clinical studies for spinal fusion. * Completed strategic alliance with Spine-Tech, Inc. for minimally invasive spine system. * Received $100,000 SBIR grant for cartilage regeneration. * Initiated Hoechst Marion Roussel collaboration. * Completed construction of GMP manufacturing facility. Product Development Healosª Orquest's first matrix-based product, mimics the inherent properties of natural bone - biochemically and architecturally. Healos is a porous, open cell matrix formed from collagen fibrils coated with hydroxyapatite (the primary components of native bone). Like natural bone, Healos is entirely replaced by newly formed bone as part of the natural healing process. Healos was developed to eliminate a painful and expensive secondary surgery (autograft harvesting) routinely performed in spinal fusion. Initial indications for Healos include spinal fusions and long-bone fractures. Healos is in clinical trials for spinal fusion in Europe; U.S. trials are expected to begin in late 1997. Ossigelª Orquest's first injectable matrix, was developed to reduce the healing time in fresh fractures through a single administration. Ossigel is a proprietary formulation of naturally occurring basic fibroblast growth factor (bFGF) with a hyaluronic acid (HA) gel. Ossigel accelerates fracture healing by stimulating the formation of a stable callus, a critical stage in the early stabilization of a fracture. Ossigel is completing preclinical trials and human clinical trials in the U.S. are expected in the second half of 1997. Technological Advantages Orquest engineers its products from naturally occurring biomaterials that have excellent safety and acceptance records in FDA reviewed and FDA approved medical products. Orquest's strength is in its ability to develop matrix-based products which harness the body's own natural capacity to regenerate and repair. The Company's matrices are uniquely formulated to be rapidly resorbed by the body and replaced by newly formed natural bone. In addition, Orquest's products demonstrate superior handling characteristics, a key requirement of physicians and orthopedic surgeons. The Future Orquest believes that additional matrix-based products will be necessary to meet the wide range of demands in the management of bone and cartilage regeneration. Orquest has several new proprietary matrices under development for targeted indications, such as cartilage regeneration. Management S. Mitchell Seyedin, Ph.D., Founder, Chairman, and Chief Scientific Officer Michael Sumner Estes, Ph.D., President, Chief Executive Officer James W. Poser, Ph.D., Vice President, Research and Development Steven R. Carlson, Vice President, Marketing, Sales, and Operations James B. Andrews, CPA, Controller Robert C. Spiro, Ph.D., Director, Bone and Cartilage Research F. Jerry Volenec, Ph.D., Director, Product Development Scientific Staff The Company's team of prominent scientists and Scientific Advisory Board of leading orthopedic physicians is unique within the industry. Investors To date, Orquest has raised $12.5 million in funding from venture capital investors primarily provided by Asset Management, Charter Ventures, Institutional Venture Partners, Mayfield Fund, Sprout Capital, and Weiss, Peck and Greer. General Background Orquest currently employs 41 people and occupies 21,000 sq. ft. of leased space in Mountain View, California, USA. The Company has the exclusive license to two U.S. issued patents and six pending patent applications. End of document.