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Cord Blood America CEO Announces Statement Regarding Expansion and Company Valuation

2008-07-17 08:45:00

    SANTA MONICA, Calif., July 17 /EMWNews/ -- Cord Blood

America, Inc. (OTC Bulletin Board: CBAI) CEO, Matthew Schissler, today

announced a business update to the marketplace as well as statements

regarding the Company's valuation. Cord Blood America, an umbilical cord

blood stem cell preservation company (

focused on bringing the life saving potential of stem cells to families

nationwide and internationally, today announced that their inventory

continues to increase both in the U.S. and in Europe at a rate above 10

percent annually bringing their total number to approximately 20,000 cord

blood stem cell samples currently. Cord Blood's a.bourkas Co. United

subsidiary in Greece will expand into Germany in August of this year with

increased expansion planned for Europe for the coming months.

    "As recently as last October, PerkinElmer Inc., a Waltham company that

sells an array of life sciences instruments and services purchased ViaCell,

Inc. for $300 million. The valuation of that transaction, based on

approximately 130,000 cord samples and the ability to organically grow the

sample base year over year, was over $2,300 per sample, which is the reason

that PerkinElmer purchased ViaCell. Based on that purchase price, Cord

Blood's samples would be worth $46,000,000. Even for the price that we

bought three of our competitors for, which we believe is well below market

value, and our own organic growth story that adds significantly to our

sample base yearly, our valuation would be an absolute minimum of 6 to 8

million dollars. Our current market capitalization is only 2 million," said

Matthew Schissler, CEO of Cord Blood America.

    "The importance of cord samples cannot be overemphasized. We believe

that many more families will participate in our program over time. With all

of the new medical technology out there, it is important to realize that

children being born now can have a sample of their umbilical cord saved

throughout their lifetime. The cells contained in the umbilical cord are

being used to help treat more than 75 diseases, including blood cancers and

some genetic diseases. At some point in the future, we believe that these

preserved cells can be used to treat many diseases and offer much better

alternatives to current treatments. It is our strategy at Cord Blood

America to continue to acquire competing companies globally, couple that

with strategic organic growth and build the biggest cord sample storage

facilities in the world," Mr. Schissler said.

    Cord Blood America has six subsidiary companies that are wholly owned.

The Company is pursuing an aggressive strategy of using insurance partners

to expand their inventory.

    Currently Cord Blood America has several insurance subsidiaries in the

U.S. that use CorCell's (a wholly owned subsidiary) services as their

preferred provider. "Our expansion strategy across the country will

continue to target one insurance carrier or subsidiary at a time, until the

insurance industry understands the life saving benefits of cord blood stem

cells. Our insurance channel partners are by far the most efficient way to

capture customers organically, thus we intend to grow this as rapidly as

our cash flow will allow," Mr. Schissler said.

    The use of insurance partners can compound the growth of inventory.

Stem cells from bone marrow are used to battle similar diseases as cord

blood. Our assessment is that as more insurance companies accept that the

cord blood stem cells are far more inexpensive and easier to acquire than

bone marrow stem cells, that mathematically they will not be able to ignore

the cost savings over time. Right now, two parties pay for health care

services, the individual consumer and insurance companies. For cord blood

storage, only one party is paying, and that is the individual. We believe

as time progresses and more diseases are battled using the umbilical cord

blood stem cells, more health insurance actuaries will take a good hard

look at the cost difference, and sooner rather than later will realize that

for certain families, the umbilical cord is the next great stem cell


    About Cord Blood America

    Cord Blood America (OTC Bulletin Board: CBAI - News) is the parent

company of CorCell, which facilitates umbilical cord blood stem cell

preservation for expectant parents and their children. Its mission is to be

the most respected stem cell preservation company in the industry.

Collected through a safe and non-invasive process, cord blood stem cells

offer a powerful and potentially life-saving resource for treating a

growing number of ailments, including cancer, leukemia, blood, and immune

disorders. To find out more about Cord Blood America, Inc. visit our

website at For investor information, visit

    Safe Harbor: This news release contains certain forward-looking

statements within the meaning of Section 27A of the Securities Act of 1933,

as amended and Section 21E of the Securities Exchange Act of 1934, as

amended, which are intended to be covered by the safe harbors created

thereby. Investors are cautioned that all forward-looking statements

involve risks and uncertainty, including without limitation, the ability of

the Company to successfully implement its turnaround strategy, changes in

costs of raw materials, labor, and employee benefits, as well as general

market conditions, competition and pricing. Although the Company believes

that the assumptions underlying the forward-looking statements contained

herein are reasonable, any of the assumptions could be inaccurate, and

therefore, there can be no assurance that the forward-looking statements

included in this letter will prove to be accurate. In light of the

significant uncertainties inherent in the forward-looking statements

included herein, the inclusion of such information should not be regarded

as representation by the Company or any other person that the objectives

and plans of the Company will be achieved. In assessing forward-looking

statements included herein, readers are urged to carefully read those

statements. When used in the Annual Report on Form 10-K, the words

"estimate," "anticipate," "expect," "believe," and similar expressions are

intended to be forward-looking statements.

CONTACT: Paul Knopick E & E Communications 949/707-5365 [email protected]

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