Xylos® Corporation and University of Mississippi Medical Center Announce First Human Implant of Securian® Tissue Reinforcement Matrix For Tendon Repair

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Langhorne, PA and Jackson, MS – August 26, 2010 . . . . Xylos Corporation (“Xylos”), a leader in biocellulose technology for medical applications, and the University of Mississippi Medical Center (“UMMC”), a leading orthopaedic and level one trauma center, announced today the first human implantation of Securian® Tissue Reinforcement Matrix in a clinical trial for the repair of rotator cuff injuries.  Securian® is a high-strength soft tissue and tendon reinforcement device based on Xylos’ proprietary biocellulose technology.   The 510(k)-cleared device is engineered to address the unique biomechanical challenges in tendon repair, most notably the tendon-suture interface.

Mark S. McNulty, President and CEO of Xylos, commented, “This study represents an exciting new addition to the clinical support for our unique biocellulose technology. The advantages of our biomaterial were previously demonstrated in a durarepair clinical study at leading neurosurgical centers in the U.S. Now, in conjunction with UMMC, a recognized leader in orthopaedic surgery, we are providing a new solution for the repair of difficult rotator cuff and tendon injuries. Extensive preclinical testing demonstrated the ability of Securian® to deliver sustained strength through the critical healing period and minimize the attachment of overlying tissue to the device. We believe these features offer clinical differentiation that can provide improved outcomes.”

About Xylos Corporation

Xylos Corporation, headquartered in Langhorne PA, is a biomaterials-based medical device company with a platform technology based on biocellulose.  Xylos is dedicated to delivering superior biomaterials solutions for the treatment, repair and replacement of human tissue without the shortfalls associated with tissue harvested from human and animal origins and materials from synthetic sources.  Xylos’ proprietary biocellulose technology possesses the effectiveness, versatility and safety profile to address a broad range of medical applications including surgical implants for musculoskeletal, urological / gynecological, general, abdominal, cardiovascular and plastic / aesthetics indications representing a U.S. market opportunity of approximately $4 billion.

About University of Mississippi Medical Center

The University of Mississippi Medical Center, located in Jackson, is the state’s only academic medical center. University of Mississippi Health Care represents the clinical programs of the Medical Center and includes University Hospitals and Health System and University Physicians, the faculty group practice. UMMC encompasses five health science schools, including medicine, nursing, health related professions, dentistry and graduate studies, as well as the site where University of Mississippi pharmacy students do their clinical training. The Medical Center’s threefold mission is to educate tomorrow’s health-care professionals, conduct innovative research to improve human health, and to provide the highest quality care available to the state’s citizens. A major goal of the Medical Center is the improvement of the health of Mississippians and the elimination of health disparities.  For more information, contact the Division of Public Affairs at 601-984-1100 or visit us on the Web athttp://info.umc.edu/.

This press release contains forward-looking statements regarding future plans, objectives and expected performance.  Any such forward-looking statements are only predictions based on assumptions that the Company believes are reasonable; however, such predications and assumptions are subject to a wide range of risks and uncertainties and, therefore, actual events or results may differ materially from those expressed or implied by such forward-looking statements.   Some of the factors that could cause actual results to differ materially from those in the forward-looking statements contained herein include, without limitation, that the Securian® clinical study will be successfully completed or that the device will be introduced and achieve market acceptance in the United States and international markets.



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