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ICX-TRC continued

Clinical development continued

These findings are consistent with the interim data reported last

September and further confirm the hypothesis that new hair production

is improved by pre-stimulation of the scalp, leading to an interaction

between the injected cells and the resident hair producing cells.

Dr Bessam Farjo, the Principal Investigator for this study, said ?We have

learned a lot from this trial, including the different ways in which these

cells can be delivered and that it is possible to do one thousand

of these injections in a relatively short period of time and at little

discomfort to the patient. I am very encouraged by this data both in

the increase in the total number of hairs in the treated site but more

importantly by the increase in thicker hairs, those over 30 micron.?

Further results of the trial will be presented later in the year.

Commercial opportunity

ICX-TRC overcomes one of the principal drawbacks of conventional

transplants which is that the outcome is limited by the amount of

donor hair available. By using the Intercytex cell therapy technique

almost limitless hair regeneration is possible in a less invasive procedure.

Furthermore, treatment can commence early on in the hair loss process

with re-treatment available in subsequent years. The barrier to commercial

success for ICX-TRC is relatively low, being the ability to increase hair

count in transplanted or thinning areas.

We believe the continued development of ICX-TRC would best be

carried out in partnership with a specialist in the aesthetics field.

We do not intend to finance the continuation of clinical and

commercial development of ICX-TRC beyond the current Phase II

trial and shall seek to sign a partner when we have the complete

data package from this trial. Intercytex has granted Bosley, the largest

chain of hair transplant clinics in the US, an option to negotiate

distribution rights to the product.