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2014-05-14

Cryo-Save Group N.V.: Cryo-Save Group N.V. announces strategy and the acquisition of Salveo Biotechnology's Swiss laboratory and related activities.

Cryo-Save - New management announces strategy to enter fields of predictive
medicine and translational regenerative medicine R&D, the change of the
holding company's name to Esperite, the reorganization of its operations into
three separate business units - cord blood and tissue cryo-preservation,
proteomics and genomics predictive medicine, and translational regenerative
medicine R&D - and the related acquisition of Salveo Biotechnology's Swiss
laboratory and related activities.

Cryo-Save Group N.V. (Euronext: CRYO, 'Cryo-Save', or 'the Group'), already
the leading international stem cell storage company and the largest family
stem cell bank in Europe, announces that it will change the name of its
holding company into Esperite. Under the new leadership of Frederic Amar an
innovative growth and expansion strategy will be implemented. The Group is
entering the fields of predictive medicine and translational regenerative
medicine R&D and has decided to create three separate and distinct business
units to support the refocus and restructuring of its operations.

The Group bases its growth on an organic development supported by its new
marketing plan, new product and synergies and a strong team of more than 170
sales representatives. Furthermore the Group aims at taking a leading role in
the consolidation process in the market for umbilical cord blood and cord
tissue, which is under major pressure.

The current cord blood and tissue cryo-preservation shall be continued under
the name Cryo-Save. Additionally, the Group will start up research and
development activities in the field of translational regenerative medicine,
via the business unit The Cell Factory. The Group will furthermore enter into
proteomics and genomics predictive medicine and to that extent will create
the new business unit Genoma. The three business units will operate as
separate brands and businesses.

Cryo-Save

The Cryo-Save business line will continue the Group's cord blood and tissue
cryo-preservation activities and plans to further extend and expand these.
Key elements of the expansion strategy will be an increase of sales force
coverage in various geographies including Spain and Italy as well as starting
operations in new territories. In this context, the Group has entered into a
joint venture with CBB Group Sarl, the operator of the Portuguese leading
Criobaby stem cell banking activities. Pursuant to the transaction, CBB Group
Sarl transfers its Portuguese activities to Cryo-Save Portugal Ltda and
acquires a 40% share interest in this company, the remaining 60% of the
shares being held by Cryo-Save.

Furthermore, as an element of the overall restructuring, the company has
entered into an asset sale and purchase agreement on the basis of which it
has acquired the Swiss laboratory-related cord blood and cord tissue
processing and storage activities, the regenerative medicine activities, and
the central commercial and IT functions of Salveo Biotechnology S.A.
('Salveo'). This transaction, which will provide the Group with additional
capacity and facilities in Geneva, will allow the company to reallocate
resources and activities, and to increase the level of operational
excellence.

The consideration for the transaction with Salveo amounts to €2,1 million
consisting of a €700,000 payment in cash and the issue of a €1.4m convertible
loan note to Salveo. The loan note pays an annual coupon of 3%. During the
conversion period, which starts on 1 January 2015 (or at the earlier
occurrence of a limited number of events) and ends on the final maturity date
- being 31 December 2019 -, the loan note is convertible into ordinary shares
of Cryo-Save at an initial conversion price of €1.70. The conversion price
may be adjusted in the case of certain dilutive events. The loan note will
not be listed. The transaction with Salveo is supported by a fairness opinion
of Duff&Phelps.

The Cell Factory

The Groups shall expand its current research and development activities,
especially focusing on regenerative medicine. In addition to managing
clinical trials to support applications of umbilical cord blood and cord
tissue, e.g. for the treatment of Cerebral Palsy, the initial activities of
The Cell Factory will be focused on research and development programs for
which a pipeline of advanced projects is already elaborated, covering among
others the fields of Central Nervous System, Cardiology, Wound Care and
various clinical applications using mesenchymal and hematopoietic stem cells.

Genoma

The Group will enter into the proteomics and genomics predictive medicine
market via the newly created business line Genoma. This market has enormous
potential, and the Group's excellent relationships with clinics, hospitals
and doctors are a solid basis to become an important promotor of new
applications.
The initial product range will consist of three tests: Tranquility, a
non-invasive prenatal test (NIPT), Verity, a metabolic disorder test, and
Omega Test, an omega-3 test. The launch is expected for Q3 of 2014. The
company is working on the development of some other exclusive tests in
partnership with leaders on this market.

Walter van Pottelberge, Chairman, stated: "The acquisition of Salveo
Biotechnology's Swiss laboratory-related cord blood and cord tissue
processing and storage activities is a logical follow-on to the first
transaction we did with Salveo Biotechnology, and it provides us a solid
platform to enhance our operational excellence".

Frédéric Amar, CEO, commented: "I have always seen Cryo-Save as the best
starting point for the elaboration of Esperite into predictive medicine and
translational regenerative medicine R&D, areas in which I expect this company
to become an important actor "

Enquiries:

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|Cryo-Save Group + 31 (0) 575 548 998 |
|Frederic Amar, CEO |
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About Cryo-Save (
www.cryo-save.com/group)
Cryo-Save, the leading international family stem cell bank, stores more than
250,000 samples from umbilical cord blood and cord tissue. There are already
many diseases treatable by the use of stem cells, and the number of
treatments will only increase. Cryo-Save has cryopreserved samples from over
70 countries on six continents, with ultra-modern processing and storage
facilities in Belgium, Germany, Dubai, and South Africa.

Press Release in PDF
http://hugin.info/143308/R/1785252/612067.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Cryo-Save Group N.V. via Globenewswire

HUG#1785252

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