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Ask The CFO

Have a question you would like to ask about our company? Complete the short form below and our Chief Financial Officer will respond to you directly.

Your name: E-mail address: Question:

Letter from the CFO

Dear Expectant Parents,

Cord blood banking is one of the most exciting and important investments your family will make, so it's important to Cord Blood Registry (CBR) that you feel confident you've chosen the right partner.

For more than a decade, more expectant parents have entrusted their babies' cord blood to us than any other family bank in the world. In fact, CBR has banked cord blood for nearly a quarter of a million newborns to date.

One of the factors expectant parents should consider in choosing a family bank is the company's financial status. Cord Blood Registry's financial success is well established. Since 1995, we've seen steady and predictable annual revenue growth; in addition, we've achieved positive cash flow from operations every year since 1999. Today, we're the largest family cord blood bank with market share approximately 40% higher than our next largest competitor.

I believe there are several factors that have contributed - and will continue to contribute - to the success of our company. First, we've invested in superior technology and we own a state-of-the-art processing and storage facility that is unparalleled in the industry. To maintain our competitive advantage and continue delivering the best possible banking experience, we regularly reinvest our profits into further advancing the stem cell storage and collection process. These investments have paid off for our clients. Our exclusive CellAdvantage system delivers the highest recovery rate of mononuclear cells, the cells that are critical for a successful transplant. Studies have correlated survival rates and improved outcomes with the number of stem cells used in therapy.

While our business has expanded during the past several years, we've always maintained a consistent focus on the quality of our operations to ensure we're delivering the best possible product and client experience. I believe this is a primary reason why we have a 99% client satisfaction rate and why Ob/Gyns recommend CBR more than any other cord blood bank.

Some of the most exciting uses of cord blood stem cells lie in regenerative medicine, the use of stem cells to repair or replace damaged tissues. Human clinical trials evaluating cord blood therapies for cerebral palsy and type 1 diabetes are underway, and scientists have already begun researching cord blood's potential to treat conditions that affect millions of Americans - such as heart disease and brain injury. CBR has played an active role in facilitating this groundbreaking research by linking our client families to the investigators of these studies as a way to further advance the science.

No other family cord blood bank comes close to equaling our successful track record. With significant financial backing, we will be here to protect your family's cord blood stem cells, now and in the future.

Please feel free to contact me with any questions. Thank you for expressing interest in our business.

Sincerely,
Johnnie Domingue
Chief Operating Officer and Chief Financial Officer

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