HemCon Overview & Training

1. HemCon Overview & Training

2. Agenda • Introductions • Company Background • Breadth of HemCon Products & Usage Models • Opportunities • Training

3. Corporate Foundation HemCon Medical Technologies, Inc. was founded on one simple premise. SAVE LIVES.

4. Milestones U.S. Army ISR Lyophilized Plasma Program Awarded ─ Cardinal Health Exclusive Ambulatory Distribution Relationship ─ 2007 Awarded $3.5mm by U.S. government to develop burn and surgical dressing ─ Received FDA clearance for HemCon Dental Dressing ─ Completed 22,000 square ft expansion of manufacturing facility ─ 2006 Initiative from Army Surgeon General to supply all U.S soldiers with HemCon Bandage ─ Appropriated $10.5mm for product procurement and R&D ─ 2005 2004 ─ Appropriated $8.7mm US government contract to expand R&D mfg capability 2003 ─ Bandage receives FDA clearance in 48 hours – 2nd fastest in US history ─ Awarded initial U.S. Army Contract 2002 ─ April - 4x4 dressing developed by OMLC with funding from US Army ─ HemCon founded under license to OMLC and Providence Health to develop and manufacture the chitosan dressing 2001

5. Proprietary Technology Chitosan – positively charged Attractive Product Features • Quickly stops severe hemorrhage in a variety of settings – typically within 2-5 minutes • Works independently of the clotting cascade • No adverse reactions reported to date (>500,000 units shipped) • Antibacterial barrier • Effective in patients taking anticoagulant medications • Easily removed without dislodging the clot • Chitosan bandage draws red blood cells / platelets to the surface • Quickly creates a clot and seals wound Red blood cells / platelets – negatively charged

6. HemCon Dressings • Rapid control of moderate to severe external (arterial) hemorrhaging • Antibacterial seal to promote healing • No adverse affects reported to date • Multiple usage models per size and shape Revolutionary hemostatic dressings providing:

7. HemCon Saves Lives • HemCon Bandages have saved over one hundred lives in Iraq and Afghanistan • Mandated by the Surgeon General that all deployed US Army carry at least one HemCon Bandage • Reported 97% effective in the battlefield by US Army Surgeon General • UK Surgeon General reports – “number of seriously injured troops dying has dropped from 24% to just 13%” • "They have resulted in a survival rate that's better than anybody has ever achieved.“ UK Surgeon General, Lieutenant General Louis Lillywhite

8. HemCon – Recent Coverage • Reader’s Digest • USA Today • National Geographic • CNN (360 with Anderson Cooper) • CNN.com • Fortune Small Business • Inc 500 Ranking - 219 • Deloitte Fast 50 Ranking - 42

9. Current HemCon Product Portfolio HemCon Bandage ChitoFlex Dental Available January 2008

10. HemCon – Hospital • ER / Trauma centers treat 6 to 7 million bleeding wounds annually • Standardized solution across departments: • Emergency Department • Trauma Centers • Surgical Suites • Interventional Radiology, Catheterization Labs • Managing Bleeding from: • Acute wounds • Multiple trauma issues • Severe bleeding / damage control • Exclusive relationship with Cardinal brings HemCon Bandages to over 50% of the hospitals in the US

11. Catheterization Lab • Success in Cath labs in Italy and Israel • Clinical study in Israel to provide data • Early success and testing at: • Central Baptist • Duke University Medical Center • Madigan

12. Select Hospital Penetration • Northwestern Memorial Hospital • Ohio State University Medical Center East* • Rehabilitation Hospital of Indiana* • Rush University Medical Center* • St. Agnes Hospital* • St. Elizabeth's Medical Center • St. Francis Hospital* • University of North Carolina Memorial Hospital • University of Pittsburgh Medical Center, Shadyside* • Vanderbilt Medical Center* • Weirton Medical Center* • Central Baptist Hospital* • Christiana Hospital • Cleveland Clinic* • Colorado Heart Institute* • Duke University Hospital • Falmouth Hospital • Grant Medical Center • Hackettstown Regional Medical Center* • Medical University of South Carolina* • Mercy Medical Center • MetroHealth Medical Center • Newton-Wellesley Hospital* * Products used in the Cardiac Catheterization Laboratory as well as in the Trauma and Emergency Departments.

13. HemCon – Prehospital Care • Successfully used by Tualatin Valley F & R • Piloted by David Shield (Israeli Red Cross) – 13 life-saving uses “The limited experience suggests the HemCon Bandage can be successfully incorporated into the civilian EMS system. When properly applied, the HemCon Bandage stops uncontrolled external hemorrhage when conventional methods fail.” - Medicine & Critical Care Review 2006 “This report on the field use of the HemCon dressing by medics suggests that it is a useful hemostatic dressing for prehospital combat casualties and supports further study to confirm efficacy.” Journal of Trauma March 2006

14. HemCon – Dental Market • 42 million extractions/year in the United States; also useful for oral surgeries, grafts & periodontal procedures • Rapid oral wound protection, allows for decreased time in the chair for patient • 10mm x 12mm for extractions • 1in x 3in for periodontal and oral surgeon market

15. HemCon – OTC • 10 million consumers on anti-coagulation medications - 50 million on aspirin therapy • 1% of population with von Willebrand’s disease or hemophilia • Prevent a trip to the emergency room - HemCon should be in every first aid kit • Marketed through pharmacies, hemodialysis clinics & physicians • Secondary markets - Home/recreational/industrial safety • Launched January 2008 in USA

16. HemCon – Wound Care “The data suggest that chitosan acetate rapidly kills bacteria in the wound before systemic invasion can take place, and is superior to alginate bandage and silver sulfadiazine that may both encourage bacterial growth in the short term.” Biomaterials 27 (2006) 4157-4164 Frost & Sullivan Reports the global advanced wound care market to be $1.5 billion in 2004, growing to $3.12 billion in 2009.

17. Training Session

18. Usage Information • The bandage can be cut into smaller pieces to fit into small wounds, or multiple bandages can be overlapped for large injuries. • The bandage must be in contact with the bleeding vessel to be effective. • Apply and maintain pressure for at least two minutes or until bleeding is controlled. • The bandage should be wrapped with gauze or a pressure dressing for transport. • Do not let moisture from your hand come in contact with the bandage. The moisture could cause the bandage to become sticky.

19. Precautions • Once applied, do not attempt to reposition the bandage. A new bandage should be applied to other exposed bleeding sites. • Care must be taken to avoid contact with the patient’s eyes. • If bandage sticks, but does not completely stop bleeding. Do not remove bandage right away. Depending on circumstances, it may be best to leave bandage on rather than trying to place a new bandage. • If bandage is not effective in stopping bleeding, remove original and apply a new bandage. Additional bandages cannot be applied over ineffective bandages.

20. What About Shellfish Allergies? • There have been no known allergic reactions as a result of using the HemCon Bandage since distribution began in 2003 and there have been no adverse effects reported in over 750,000 bandages shipped. • Shellfish allergy study shows that, out of 221 individuals with suspected hypersensitivity, including 8 individuals with known shellfish allergies, none demonstrated any dermal sensitivity when pricked with a chitosan test solution. However, since chitosan is extracted from the shells of shrimp, other shellfish and fungi, individuals with known shellfish allergies should exercise caution in the use of products containing chitosan.

21. Instructions for Removal • The bandage can be left in place for up to 48 hours. • Do not remove bandage until definitive surgical care is available. • To remove, simply irrigate the area with saline. There is no need for wound debridement.

22. HemCon Bandage In Use Head Injury (OIF) Gun Shot Wound

23. HemCon Bandage In Use Gun Shot Wound (Exit) Facial Abrasions

24. Thank You For further information please contact: HemCon Medical Technologies, Inc. 10575 SW Cascade Ave. Portland, OR 97223 +1.503.245.0459 www.hemcon.com