ANN ARBOR, MICH., Sept. 18, 2002 – The bad news was research showed smoking reduces the body’s ability to absorb calcium, damages cells, prevents new bone growth and can cause osteoporosis. Now here’s some good news. "Some of Michigan’s tobacco settlement money designated to energize the life sciences industry will enable our biotechnology company to expand its research into new therapies that stimulate bone formation rather than just stopping or delaying bone loss," said Dr. Michael Long, the founder, president and chief executive officer of Velcura Therapeutics™, Inc.

Not only smokers, but also millions of other people who suffer from extremely costly, progressively debilitating and sometimes fatal bone disorders and diseases potentially can benefit from the patented technology for growing human bone outside the body that Dr. Long developed as a professor at the University of Michigan Medical School. Dr. Long added, "The Michigan Life Sciences Corridor funding allows us to hire additional research staff and move our laboratory from U-M to a 5,400-square foot facility dedicated to this research." Velcura Therapeutics™, Inc. recently rented space at 4300 Varsity Drive, Suite D, in Ann Arbor.

The American Association for the Advancement of Science (AAAS), publishers of Science magazine, conducted the MLSC review process that awarded Velcura Therapeutics™, Inc. $3.3 million, the largest award to any private corporation this year. In announcing the $45 million in total awards to 18 projects in 2002, Doug Rothwell, president and CEO of the Michigan Economic Development Corporation (MEDC) said, "These funds will nurture a powerful, progressive life sciences industry in our state that is creating jobs while also addressing important health issues which affect all Michigan families."

About Velcura Therapeutics™, Inc.

Based in Ann Arbor, Mich., this biotechnology company is developing new and better therapies that stimulate bone formation for diseases such as osteoporosis, bone cancer, fractures and other bone diseases. Building on its scientific founder’s patented technology and ability to rapidly isolate and analyze human bone cells, Velcura can grow human bone outside the body (ex vivo) using a rapid (7-10 days) and reliable method. From this, Velcura identifies therapeutic targets aimed at stimulating human bone formation. During his career, Dr. Michael Long has received more than $10 million in funding for his research from the National Institutes of Health. Founded in 2001 as Osteomics by Dr. Long and Mary Ann Alger, it was the grand prize winner in the first annual Michigan Business Plan Competition (www.gleq.org). Velcura Therapeutics™, Inc. has an exclusive license agreement with the University of Michigan. For more information, visit www.velcura.com, www.lifesciences.umich.edu and medc.michigan.org/lifescience/.