Lattice Biologics Preparing to Launch Three New Products Featuring Matrix-Assisted Regeneration (MAR) Technology

SCOTTSDALE, AZ–(Marketwired – April 18, 2016) – Lattice Biologics Ltd. (TSX VENTURE:LBL) (OTCBB: BLVKF) (Lattice Biologics) to launch three new products utilizing its patent pending matrix-assisted regeneration (MAR) platform. New products, MarBrane andMarGraft (expected to launch in Q2 2016) and MarCell (expected to launch in Q3 2016) are anticipated to significantly accelerate the company’s top line revenue growth.

“With the advent of the cell viability biomarkers that Lattice Biologics is developing and implementing in their tissue recovery process, I am excited to participate in this revolutionary new approach,” states Dr. Richard D Guyer, Chairman, TBIRF of the Texas Back Institute / Lattice Biologics Scientific Advisory Board Member.

“The ability to identify viable cells from non-viable cells promises a new understanding in this class of allograft tissue. It will be interesting to see if viable cells can auto-regulate BMPs (Bone Morphogenetic Proteins) in sufficient levels to induce spinal fusion.”

1. MarBrane is Lattice Biologics’ first amniotic tissue membrane product harvested from placental tissue. This versatile biologic is processed using the company’s patent pending matrix-assisted regeneration (MAR) technology which protects cells during the recovery process, allowing for greater cell viability. MarBrane has been developed for use in a broad range of markets and applications, including: advanced wound, plastic surgery, pain management, spinal, orthopedic, and ocular indications.

About Amniotic Membranes:

Placental tissues are a rich source of proteins, nutrients, carbohydrates, and growth factors that are essential for growth and development. These “super tissues” contain:

• Pluripotent stem cells (self-renewing “master cells” which can produce any cell or tissue the body needs to repair itself).
• Mesenchymal stem cells (MSCs) (multipotent stromal cells that can differentiate into a variety of cell types, including: bone, cartilage, muscle, and fat).
• Hyaluronic acid that separates and cushions the living cells of the connective tissue, provides joint lubrication and reduces scarring.
• Anti-inflammatory cytokines
• Biological signaling proteins that promote regenerative healing.

Amniotic tissue, the innermost layer of the placenta, is unique in that it is “immune-privileged” and, as such, rarely evokes an immune response in the human body. Research¹has shown that amniotic tissue does not express the Class II antigens that typically evoke an immune response.

As an amniotic tissue matrix allograft, MarBrane offers a natural collagen scaffolding, an extracellular matrix (ECM) that gives structural support to adjacent cells for tissue development and promotes the migration and proliferation of the patient’s own cells to the site of injury or defect for advanced healing. Placental tissue allografts present a safe, non-immunologic alternative to synthetic, cadaveric, and animal-derived regenerative products.

Beneficial properties of amniotic tissue matrix allografts:

• Regenerative – for shorter healing times and reduction in revisions
• Anti-adhesion – to minimize fibrosis (scarring)
• Anti-inflammatory – for less pain
• Anti-microbial – for reduced risk of infection

2. MarGraft, Lattice Biologics’ demineralized cortical fiber product, will advance the company’s extensive product line of allograft tissues. MarGraft can be molded into various sizes and shapes, including multi-segment strips and boats, which are used widely in spinal fusion. Specialized shapes and sizes such as these command premium pricing relative to traditional allograft tissues or DBM (Demineralized Bone Matrix) putty.

3. MarCell, the first offering of Lattice Biologics viable cell allograft tissue, combines multiple proprietary technologies to produce a best-in-class, fully moldable viable cell allograft. MarCell is anticipated to launch at the North American Spine Society Annual Meeting, NASS 2016, in Boston this October 26-29.

Lattice Biologics is currently negotiating with several large orthobiologic distributors to launch the product nationally and internationally.

References:

¹ Insausti, C., Blanquer, M., García-Hernández, A., Castellanos, G. and Moraleda, J. (2014) Amniotic membrane-derived stem cells: immunomodulatory properties and potential clinical application. Stem Cells Cloning 2014; 7: 53-63.

About Lattice Biologics Ltd.:

Lattice Biologics recently completed its RTO, becoming a publically traded company on January 4, 2016 and is traded as TSX-V: LBL and OTCBB: BLVKF. The Company is an emerging personalized/precision medicine leader in the field of cellular therapies and tissue engineering, with a focus on bone, skin, and cartilage regeneration.

Lattice Biologics develops and manufactures biologic products to domestic and international markets. Lattice’s products are used in a variety of applications, including:

• Enhancing fusion in spine surgery
• Enhancing breast reconstruction post mastectomy for breast cancer patients
• Sports medicine indications, including ACL repair
• Promotion of bone regeneration in foot and ankle surgery
• Promotion of skull healing following neurosurgery
• Enhancing wound repair in burn victims
• Subchondral bone defect repair in knee and other joint surgeries

Lattice Biologics maintains headquarters, laboratory and manufacturing facilities in Scottsdale, Arizona as well as offices in Toronto Ontario. The facility includes ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment capable of crafting traditional allografts and precision specialty allografts for various clinical applications.

The Lattice Biologics organization includes a product development and scientific research team of Ph.D.’s, highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians, and CNC operators who maintain the highest standards of aseptic technique throughout each step of the manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice is committed to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.

Lattice Biologics maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally. This includes Certificates to Foreign Governments from the U.S. Food and Drug Administration (FDA) and registrations for 29 countries, which allow the export of bone, tendon, meniscus, ligament, soft tissue, and cartilage products outside of the U.S.

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This news release may include forward-looking statements that are subject to risks and uncertainties. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “continuing”, “intends” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lattice Biologics to be materially different from those expressed by such forward-looking statements or forward-looking information. Although Lattice Biologics believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

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