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ThermoGenesis Signs Major Bone Marrow Product Distribution Agreement in China
Date:11/4/2010

nt Nanshan will, after obtaining regulatory approval in China, target over twenty high volume procedure hospital facilities in five major Chinese provinces, including Hubei, Beijing, Chongqing, Jaingsu, and Shanghai. Phases two and three will include additional hospitals within these provinces and the expansion into medical centers in other provinces. As part of the agreement, ThermoGenesis will initially grant Nanshan restricted stock equal to one-half percent of the total outstanding common shares of the Company, or approximately 70,000 shares, in exchange for setup investments by Nanshan in infrastructure and organizational build-out dedicated to the distribution of ThermoGenesis' products. In addition, the contract calls for the issuance of additional restricted stock upon the completion of certain revenue milestones over the term of the contract. The maximum number of restricted shares issuable over the four years of the agreement totals 876,000 and is based upon the milestone achievement of $43 million in sales. All awards are subject to the requirements under Rule 144 of the U.S. Securities Act of 1933.

"We are delighted to be introducing these ThermoGenesis products in China and Hong Kong.  In the U.S., both Res-Q and MXP have demonstrated efficient preparation of cell concentrates in rapid and easy-to-use procedures in both commercial applications and the clinical setting. ThermoGenesis has developed leading-edge technology for the bone marrow stem cell market and we believe the products will receive a positive response," said Daniel Lu, President of Nanshan.

"With this agreement, and those we signed earlier this calendar year with GE Healthcare, TotiPotentSC and CEI, we now have a global presence for our bone marrow product offerings to complement our exclusive program for orthopedic indications in the U.S. with Celling Technologies," Engle noted.

The Company has also filed a form 510(k) with the FDA seeking market clearance for u
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SOURCE ThermoGenesis Corp.
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