Clearant Signs Supply Agreement with California Tissue Bank to Directly Distribute Sterile Sports Medicine Implants Throughout the USA.

Expansion of Direct Distribution Initiative Increases Clearant's Addressable Market to $350 Million per year

LOS ANGELES -- Clearant, Inc. (OTCBB:CLRI) today announced that it has signed a multi-year agreement with Tissue Banks International (TBI), a non-profit provider of tissues for orthopedic, spinal, sports medicine, and urologic surgery, for the supply of Clearant Process[R] sports medicine implants. This agreement allows Clearant, Inc. to participate in a $350 million per year market.

"At TBI we believe that providing sterile tissue is an imperative safety precaution and we are proud to have offered Clearant's sterilized sports medicine implants since 2004," said James Forsell, PhD, Senior Vice-President for processing, TBI. "We're confident that the Clearant Process is a safe pathogen inactivation process available to sterilize tissue allograft implants while allowing patients to regain their full range of motion following surgery. We look forward to working with Clearant to expand availability of the Clearant Process."

"As the first U.S. tissue bank to offer Clearant Process sterilized tissues, TBI demonstrated that safety has always been a high priority for them," said Clearant Chief Executive Officer Alain Delongchamp. "We're pleased with our longstanding relationship with TBI and look forward to continue working together to provide leading surgeons and clinics with Clearant Process sterile implants. We believe that, under our direct distribution initiative, we will be able to increase the number of surgeons using Clearant Process sterile implants."

The Clearant Process is a sterilization technology that virtually eliminates the risk of infection in bone and soft-tissue allograft implants while preserving their functional viability. This patented methodology inactivates all types of viruses, including HIV, and Hepatitis A and C, and achieves a level of microbial sterility that meets or exceeds the level of medical device sterility.

About Clearant, Inc.

Clearant, Inc. is a leader in pathogen inactivation for biological products. Clearant has developed the patent-protected Clearant Process, which substantially reduces all types of bacteria and viruses in biological products while maintaining the functionality of the underlying tissue implant or protein. The Company began to distribute directly to surgeons, hospitals and clinics Clearant Process sterile implants in June 2006; in addition, Clearant continues to license the Clearant Process and provides its patented sterilization services to tissue banks and other biological products manufacturers. As of the end of 1Q 2006, Clearant had 10 license and service agreements with tissue banks. To date more than 9,000 patients have been successfully implanted with Clearant Process sterile implants supplied by one of the Company's licensed partners. Whereas various competing sterilization methods only kill specific types of pathogens (such as bacteria or lipid-enveloped viruses) for specific products, the Clearant Process reduces all types of pathogens for products across many market segments including tissue implants, plasma proteins, recombinant products, medical devices and blood products. Also, the Clearant Process can be applied at various stages of product processing and/or manufacturing, including in the final packaging. For more information, please visit www.clearant.com.

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, in particular statements regarding surgeons strongly recommending the use of implants with tissue treated by the CLEARANT PROCESS, and the conclusions from a study by surgeons to build demand for sterilized tissue. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control, which may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing, exploiting and protecting proprietary technologies, results of additional clinical studies, acceptance and success of our direct distribution of allografts, efficacy of the technology, intense competition and substantial regulation in the biotechnology industry, and additional risks discussed in the company's filings with the SEC, available on the SEC web site http://www.sec.gov.