Press Release 1 January 2007... continued

From inception just six months ago, B1 Medical has licensed eight new products and expects to have the first product on the market during 2007. In terms of IP, the company has also obtained an exclusive ten year first option over all future medical devices for orthopaedics developed by the Institutions. The company is involved with the development of orthopaedic products such as implants, trauma devices and diagnostic instrumentation.

B1 Medical's inventions could make a real difference in the lives of those who, for a number of reasons, require small joint replacements. For example, the replacement of a small joint in a finger or toe, as treatment for rheumatoid arthritis, can dramatically enhance a sufferer's quality of life and reduce pain. Neil Crabb, joint managing director of Sigma Capital Group, said: “B1 Medical is an exciting company with a unique model of commercialisation which is attractive to investors. The company has enormous potential moving forward and the award is recognition of this. “The recent announcement of the establishment of our long-term working partnership with the Robert Gordon University, combined with our investment in B1 Medical, further demonstrates our commitment to enhancing and accelerating the commercialisation of intellectual property emerging from Scottish universities.”

Peter Seddon, chief executive of B1 Medical, commented: “Winning the awards for most promising new life sciences company in Scotland is a real coup and demonstrates how the Universities and the NHS can work in partnership to deliver real results for patients. Sigma Capital has been an indispensable source of financial support throughout all stages of the company’s development.” Backed by Scottish Enterprise, the annual Life Sciences Award recognises ground-breaking developments in healthcare, nutrition, medical devices and disease prevention within Scotland’s life sciences community.