AlloSource Introduces AlloFuse DBM Putty and Gel; New Offering Positions Company as Full-Line Provider of Allograft Products.

Business Editors/Health/Medical Writers

CENTENNIAL, Colo. & DENVER--(BUSINESS WIRE)--March 4, 2003

AlloSource(R), one of the nation's largest non-profit tissue bank cooperatives, announced it has added AlloFuse(TM) demineralized bone matrix (DBM)(1), configured in both putty and gel formulations, to its popular allograft product line. The addition of AlloFuse DBM Putty and Gel completes AlloSource's offering of allograft products, providing its customers the opportunity to consolidate their allograft needs with a full-line provider. Distribution of AlloFuse DBM Putty and Gel is scheduled to begin in March 2003.

AlloFuse DBM Putty and Gel is made from human bone and contains DBM combined with a reverse phase medium poloxamer known as RPM(TM). The clinical efficacy of DBM in the promotion of bone growth is widely accepted in the orthopedic field and the safety of RPM has been evaluated in animal studies. AlloFuse DBM will firm upon warming to body temperature and resists irrigation in surgical environments. In addition, RPM keeps the DBM where it is meant to be which allows for the formation of new bone. Both the putty and gel grafts contain DBM with RPM and can be used in most places where bone formation is desired (e.g. spine surgeries or bone defects surgeries). Graft selection is based on surgeon preference.

    AlloFuse DBM offers several advantages:

        --  Proven bioactivity - every batch of DBM is tested for
            osteoinductivity
        --  Unique carrier - is biocompatible and resists irrigation
        --  High DBM content - one of the highest DBM contents of DBM
            putties and gels on the market today
        --  Produced with high standards of safety - produced under
            AATB/FDA guidelines
        --  Exceptional handling characteristics - moldable to any
            shape; can be packed into any defect size; does not stick
            to surgical gloves; firms up at human body temperatures
        --  Validated sterilization - electron beam sterilized after
            final product packaging
        --  Competitively priced - because AlloSource is a non-profit
            company, we are able to offer AlloFuse DBM products at
            pricing competitive with other comparable putties and gels

"AlloSource continues to pursue ways to provide physicians and patients in our donor recovery areas with better solutions for bone grafting," said Kevin Cmunt, vice president of Customer and Business Development at AlloSource. "Through our latest product offering, our customers have access to a comprehensive allograft line that includes highly effective machine graft products, traditional allografts, sports medicine products and now AlloFuse DBM Putty and Gel. By adding AlloFuse DBM Putty and Gel to our allograft roster, we now offer our current and potential customers the convenience of a complete line of products for all of their allograft needs."

AlloSource Company Information

AlloSource brings together some of the country's most reputable organ and tissue procurement groups - Mid-America Transplant Services of St. Louis; Donor Alliance of Denver; The Regional Organ Bank of Illinois in Chicago; and the Lifesharing(TM) Community Organ and Tissue Donation in San Diego. AlloSource and its partners are AATB accredited and represent more than 85 years of combined experience in the tissue banking industry. RPM is a trademark of GenSci OrthoBiologics, Inc. and AlloFuse DBM Putty and Gel are manufactured in conjunction with GenSci (TSX: GNS), one of our customers. For more information, visit the company's Web site at www.AlloSource.org.

(1) DBM is an osteoinductive agent. An osteoinductive agent can induce

differentiation of undifferentiated stem cells to osteogenic cells

or induce stem cells to proliferate (reproduce).