Pegasus Biologics Reports 1700th OrthADAPT(TM) Bioimplant Procedure.

Groundbreaking Biologics Company Announces Benchmark at First Albany Capital's Second Annual Orthopedics Conference

SAN DIEGO -- Pegasus Biologics, Inc., Irvine, California based developers of unique bioimplants for soft tissue repair, announced today that their OrthADAPT[TM] Bioimplant has now been used in more than 1700 procedures. The announcement was made during Pegasus Biologics' presentation at First Albany Capital's Second Annual Orthopedics Conference in San Diego, where the company had been invited to present their technologies.

With participants from both the private and public industry sectors, the First Albany conference's focus was emerging technologies and trends for 2007 and beyond in the fast-growing areas of orthopedics.

Pegasus Biologics was invited by conference organizers to present highlights of the Company's products and growth. The initial product launched, the OrthADAPT[TM] Bioimplant, is a biocompatible, stabilized, sterilized collagen scaffold that strengthens and supports tissue ingrowth for long-term performance. It is being used for the reinforcement, repair and reconstruction of soft tissue in musculoskeletal procedures. Developed over time and proven in studies, Pegasus Biologics' breakthrough stabilization and sterilization technologies provide the Bioimplant with unique advantages in biocompatibility and reliability. At the time of Pegasus Biologics presentation in San Diego, more than 1700 confirmed procedures had been performed utilizing OrthADAPT[TM] Bioimplants in the US since its launch last year.

"We are extremely pleased with the way our OrthADAPT[TM] Bioimplant has been received and utilized by so many of our nation's premier implanting surgeons," said Pegasus President and Founder, France Dixon Helfer. "In the one year since we launched OrthADAPT[TM] at last year's Academy, we have received highly positive feedback from surgeons regarding the Bioimplants' performance. We are planning some significant new product and application launches for the coming months, and we anticipate that to lead to a big year for us."

Helfer noted that surgeons have shared they are particularly impressed with the Bioimplants' strength, handling characteristics, and versatility allowing them to use the product for both routine and challenging tendon and ligament repairs.

Attendees at this year's American Academy of Orthopaedic Surgeons (AAOS) 2007 Meeting (the largest gathering of Orthopedic Surgeons in the world) are also getting a chance to handle Pegasus Biologics' Bioimplants, as various sizes of the FDA cleared, sterilized, uniquely stable material are on display at the Pegasus Biologics exhibit booth.

Pegasus Biologics, Inc. (Irvine, CA) is a privately held company focused on the development and commercialization of next generation biologics utilizing the Company's unique and patented technologies. Additional information on the Company can be found at www.pegasusbio.com.