World Expert on Liver Disease Joins the Scientific Advisory Board of Medgenics

Medgenics (AIM: MEDG and MEDU), the biopharmaceutical company that creates implantable therapeutic protein producing Biopumps, announced today that Dr. Bruce R. Bacon was appointed to the Scientific Advisory Board of the Company.

Dr. Bacon is a former President of the American Association for the Study of Liver Diseases (AASLD) and a recognised World expert on Hepatitis. Dr. Bacon is the James F. King, MD Endowed Chair in Gastroenterology, Professor of Internal Medicine, and Director of the Division of Gastroenterology and Hepatology at Saint Louis University School of Medicine in St. Louis, Missouri. The potential treatment of Hepatitis using the Company’s patented INFRADURE technology is one of the core projects that the Company is seeking to commercialise. Medgenics reported consistently promising and unprecedented results from the safety and efficacy clinical trial of its EPODURE Biopumps for sustained anaemia treatment from a single administration, in progress since September 2008. Biopumps are made from tissue taken by needle biopsy taken from under the patient’s own skin and processed to become implantable biofactories to provide the required therapeutic protein for many months. The INFRADURE technology has been similarly used to create implantable Biopumps that produce Interferon Alpha for months and will offer a significant addition to the physician’s Hepatitis armamentarium to treat this scourge of a disease.

Dr. Eugene Bauer, Chairman of Medgenics commented:“We are delighted to welcome Dr. Bacon to Medgenics. As one of the world’s top experts in Hepatitis C, he brings a wealth of experience and influence to the company. Hepatitis is one of the core areas of treatment that we are seeking to commercialise. Having an expert of Dr. Bacon’s calibre is essential as we move into the clinic with the exciting new approach to treatment that our INFRADURE technology offers. Our ability to attract leading figures such as Dr. Bacon demonstrates the growing stature of Medgenics in the global market for therapeutic protein delivery. I and the rest of the Board look forward to working with him as we continue to develop Medgenics.”

Dr. Andrew Pearlman, CEO of Medgenics commented:“The appointment of Dr. Bacon is another important addition to the senior team at Medgenics. Coming in the wake of the signing of a hemophilia development agreement with a major international biopharmaceutical company, Dr. Bacon’s appointment is a further strong vote of confidence for Medgenics and our INFRADURE approach to interferon alpha therapy in the treatment of Hepatitis C.”

About Medgenics:

Medgenics is a clinical-stage biopharmaceutical company developing its unique tissue-based Biopump platform technology using the patient’s own skin to provide sustained-action protein therapy for the treatment of a range of chronic diseases. The Company currently has three products in development based on this technology and addressing the indications of:

- Anaemia - using EPODURE, a Biopump producing erythropoietin (EPO)

- Hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a)

- Hemophilia - using a Biopump to produce clotting Factor VIII

The Company's Phase I/II clinical trial using EPODURE to treat anaemia in patients with chronic kidney disease, has demonstrated proof of concept of the Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for six months or more, EPODURE Biopumps have already provided effective anaemia treatment in most of these patients for 6-12 months, even at the low administered dose.

Medgenics intends to develop its innovative products and bring them to market via multiple strategic partnerships with major pharmaceutical and/or medical device companies. In addition to treatments for Anaemia, Hepatitis-C, Hemophilia, Medgenics plans to develop and/or out-license a pipeline of future Biopump products targeting the large and rapidly growing global protein therapy market, which is forecast to reach US $87 billion by 2010. Other potential applications of Biopumps producing various proteins include multiple sclerosis, arthritis, pediatric growth hormone deficiency, obesity, and diabetes.