First Investment

RNS Number:6715J
CapRegen PLC
12 December 2007

                                    CAPREGEN PLC



                                 First Investment



12 December 2007



CapRegen PLC ("CapRegen"), the AIM listed anti-ageing and regenerative medicine
investment company, is pleased to announce its first investment since listing in
July 2007.



CapRegen has incorporated a new UK domiciled subsidiary, CapRegen Magnum Limited
("Magnum"), to invest in medical device marketing initiatives in the aesthetics
and sports medicine industries. The Board of CapRegen has agreed to make an
initial investment of up to $500,000 (approx. £250,000) in Magnum by way of a
working capital facility.



Magnum has today entered into a marketing agreement with USA Perfector Arasys
Inc ("Arasys") which has the worldwide sales and marketing rights to the
Perfector, Arasys and Ion Magnum medical devices. These devices are manufactured
in the UK by Gerry Pollock the co-inventor of the pacemaker. Arasys has a
licence to sell the products into the anti-ageing, aesthetic, spa, medical spa,
medical clinic, hospital and preventative medicine markets anywhere in the
world.  These devices are used to help build muscle, improve muscle tone and as
part of an overall health and fitness programme.



Under the agreement Dr Xanya Sofra-Weiss, the sole owner of Arasys, will
subscribe for 10 per cent of the shares in Magnum at par value and has the right
to subscribe for up to a further 10 per cent of Magnum at par value if certain
profit targets are achieved. These additional shares will be made available as
to 2.5 per cent when Magnum's annual profits before tax hit $ 1 million and a
further 2.5 per cent for each additional $ 1 million of profits before tax per
annum until the Magnum's total annual profits before tax reach or exceed $ 4
million.



The agreement provides for Arasys to pay Magnum a royalty of 50% of its net
sales income ( sales revenue of Arasys net of VAT or other sales taxes and after
deducting only the unit cost paid by Arasys to the manufacturer for the relevant
product) on each product sold by Arasys anywhere in the world. Dr Weiss will not
and Arasys will not permit the products to be sold by any other person firm or
company associated with or connected to them or either of them.



As part of the agreement Arasys has appointed Magnum to promote its products, to
research markets and potential customers, to effect introductions to potential
purchasers, to procure promotional opportunities for its products and to assist
Arasys generally with its marketing and sales strategy. From 2008 Magnum will
contribute $200,000 per annum to Arasys for its sales and administrative costs.







Dr Robert Goldman, Executive Director of Capregen said:



"We are very pleased to have set up CapRegen Magnum and for it to have entered
into CapRegen's first transaction with a marketing agreement with USA Perfector
Arasys Inc.. The anti-ageing market is now worth over $ 50 billion dollars a
year in the US alone and is at the beginning of its growth phase
internationally. The Arasys product range has received a very positive response
from the market and through CapRegen's marketing resources and relationships we
believe we can accelerate this growth further."







Contact details:

CapRegen PLC

Dr Robert Goldman      Executive Director            Tel. no. 0208 846 2708

Douglas Emslie Chairman                              Tel. no. 0208 846 2708














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