1. Forticell Bioscience, Inc
Forticell Bioscience, Inc. Developing Innovative Products To Advance Regenerative Medicine COSTA PAPASTEPHANOU, Ph.D. Chief Executive Officer

2. Safe Harbor Statement
This presentation contains forward-looking statements, including, without limitation, statements concerning product-development objectives and anticipated timing, clinical trial timing, and expected results, potential market opportunities and revenue models, market development plans, anticipated key milestones and potential advantages and applications, which involve certain risks and uncertainties. Actual results may differ significantly from the expectations contained in the forward-looking statements.
Among the factors that may results in differences are the results obtained from clinical trials and development activities, regulatory approval requirements, competitive conditions and availability of resources.
These and other significant factors are discussed in greater detail in Forticell’s Annual Report on form 10-KSB and other filings with the Securities and Exchange Commission.

3. Forticell Overview Founded as Ortec in 1991
Lead Product – OrCel®, a “skin substitute” wound care product
Superior efficacy / Ease of Use / Distribution advantages
Strong patent coverage
Addressable markets in excess of $1 billion
Completed Phase III trial for Venous Leg Ulcers (VLU)
PMA filed in October 2007
FDA Approval to initiate Pivotal (Phase III) trial for Diabetic Foot Ulcers
Acquired two advanced biomaterial platform technologies
Fibrin Microbeads for adult stem cell isolation and therapy
Haptide® peptides for soft tissue augmentation and regeneration

4. Clinical Application of OrCel® in VLU

5. Unique Characteristics of OrCel®
OrCel® Provides An Optimal Environment For Stimulating Accelerated Skin Regeneration and Wound Healing
Unique Characteristics of OrCel®
Bi-layered
-optimal growth factor mix
Open collagen scaffold
-deposited biomatrix
-cell migration
-re-vascularization
Immature cells
-highly productive
-proliferative
-induce rapid regeneration
Cryopreserved
-extended shelf life
-ease of distribution
Allogeneic
Keratinocytes
Allogeneic
Fibroblasts

6. Cryopreserved vs. Fresh
Longer Shelf Life
Guaranteed Quality
Immediately Available to End User
Reduced Cost of Production
Inventory Management

7. Overview of OrCel®’s Venous Leg Ulcer Pivotal Trial Results
OrCel® treated patients healed faster and in larger numbers than Standard of Care (SoC) patients.
50% of OrCel® treated patients achieved 100% wound closure in
comparison to 31% for SoC patients (p=0.0141)
Median time to healing for treated patients was 77 days while
median time to healing was not achieved with SoC patients
Mean days to healing was 63.7 days for OrCel® treated
patients and 74.6 days for SoC (p=0.0113)
OrCel treated patients had a faster rate of healing at each visit
(p<0.0001)
Durability of healing was better in OrCel® treated patients
compared to SoC treated patients (87%) vs. 78%) and
the mean time to ulcer recurrence in the SoC group was
92 days vs. 113 days for the OrCel® group.

8. Percentage of Subjects Healed at Each Week
p value=0.0290
Percent of Subjects Healed
Weeks

9. Days to 100% Wound Closure by Investigator Assessment

10. Chronic Venous Leg Ulcers Prevalence
As the US population ages (35.9 million over 65 years of age and 4.7 million over 85), the incidence of chronic wounds is expected to rise significantly, with estimates of 5 to 7 million chronic and complex wounds projected.
Venous leg ulcers are the most common type of chronic wounds with an incidence of 2.5 million each year. The prevalence rises dramatically with age and affects more than 1% of those over 60.
VLU’s account for the loss of 2 million workdays a year.
Cost of treating leg ulcers is $2-3 billion/year
$1 billion for out-patient care alone
$27,000 per episode

11. Achieving Market Success
Established Market – Tissue engineering is now a real option in wound care
Educated Physicians - First entrants paved the way in education
VLU/DFU market still waiting for optimal product
Serious and costly medical issue
Market conditions are conducive for us to be successful. Advanced wound care has evolved as the preferred option to treat chronic wounds and we offer the most advanced product.
More physicians are aware and educated in the tissue engineered and advanced wound care products which have been introduced into the market place within the last few years.
Reimbursement has been achieved making the ability to penetrate much easier than it was for the first entrants into the market.
A number of products have been commercialized; some quite successfully, but the market still awaits the optimal product and OrCel fills that niche.

12. Sales Projections First year: ~ 10,000 units ~ $10 mm Second year:
Third year:
~ 40 – 50,000 units ~ $40 – 50 mm

13. Pilot Diabetic Foot Ulcer Data - OrCel® Heals Wounds Faster
Diabetic Pilot Results
% of
patients
achieving
100%
wound closure
47%
23%
OrCel has shown to be effective in treating DFUs, as well, were OrCel showed a 104% improvement over standard of care in ulcers <6cm2 or less.
This was a 40 patient - 12 week study – clinical endpoint was 100% healing.
Daily rate of healing was almost double in comparison to the standard of care.
These results were published in July 2003 peer reviewed journal “Wounds”.
Based on these results, we have obtained approval to begin DFU pivotal trial. We expect to do so upon completion of the VLU confirmatory trial.
OrCel®
Standard of Care

14. Haptides™ Platform Haptides are a soluble synthetic version
of the fibrinogen cell attachment
peptide sequence

15. Licensing and Co-Development Opportunities for Haptides™ Technology
Chronic wound healing
Periodontal regeneration
Orthopedic implants
Dermal soft tissue augmentation
Industrial scale microcarrier cell culture

16. Haptide Treated Collagen Preclinical Validation of Enhanced Cell Attachment
Improved cell attachment and growth in vitro by 40-50%
Increased cell migration from surrounding dermis
Very low inflammation
Well integrated into surrounding tissue
Passed all safety, biocompatibility, and toxicology tests (ICH/ FDA)
Promising results in implantation studies in vivo
Peer-reviewed publication

17. Novel Biomatrix Enabling Stem Cell Therapy
Fibrin MicroBeads
Novel Biomatrix Enabling Stem Cell Therapy
Fibrin MicroBeads (Fibrin MB): cross-linked, heat-treated Fibrin beads that can be used to isolate matrix-dependent cells, including Mesenchymal-type Adult Stem Cells
In Vitro and In Vivo proof of principle of stem cell isolation, expansion and differentiation
Published data
Valuable Unique Intellectual Property
Five U.S. Patents Issued
Received notice of allowance for European Patent
Five publications in peer reviewed journals
Valuable licensing opportunity
Significant advantages over comparable technologies

18. FMB Stem Cell Enabling Product and Competition Advantages
Recovery, expansion, differentiation and delivery possible on same matrix
Adaptable to all sources of adult MSC
Peripheral blood
Bone Marrow
Adipose tissue
Cord Blood
Minimizes complex and costly aseptic culture process

19. Projected PMA Timeline
February 2007: Submission of manufacturing process (CMC)
October 2007: Submission of the clinical data
January 2008: Expected FDA response
June / July 2008: PMA Approval
September 2008: Launch OrCel in US
January 2009: Begin DFU Clinical Trial 

20. Ortec’s Key Value Considerations
Pre Market Approval (PMA) submission for venous leg ulcer indication
completed
Potential initiation of revenue in 2008 upon FDA approval;
 Strong patent position – withstood two patent challenges
Limited competition - One direct competitor (Apligraf)
CMS reimbursement in place
Reimbursement currently in excess of $1,100 per application
Approval to initiate Phase III clinical for use of OrCel in diabetic foot ulcers.
Potentially two additional valuable technologies applicable to growing area of regenerative medicine including cosmetic applications
Multiple licensing opportunities
Valuable IP in adult stem cell space
Issued patents for cell attachment technology
Historically low market value

21. Capital Structure
Common Shares (Including Restricted and Penny Warrants) ,561,000
Preferred Share Common Stock Equivalent (upon conversion) 36,420,000
TOTAL ,981,000
Warrants & Stock Options (Avg exercise price $0.95) ,183,000
Fully Diluted Common Stock and Equivalents ,164,000
Stock November 20, $0.50
(FORB )

22. ( F O R B ) www.forticellbioscience.com