Industry: BIOTECH / BIOPHARM

CryoPort, Inc. (OTCBB: CYRX) develops leading edge, proprietary, technology-driven shipping and storage products for use in the biotechnology and biopharmaceutical industries worldwide. The products developed by CryoPort are essential components that are required for the testing, research and end user delivery of temperature-sensitive medicines and biomaterials in an increasingly complex logistical environment.

The Company is well-poised to capitalize on servicing the transportation needs of the biotechnology industry by providing a newly developed line of one time use dry cryogenic shippers for the transport of temperature-sensitive medicines and biological materials.

By introducing a cost effective one-time use cryogenic shipper to market, the Company is positioning themselves as the potential leader in providing cost effective packaging systems for biological materials that require or benefit from a frozen or cryogenic temperature (less than -150°C) environment over an extended period of time (up to 10 days) that significantly exceed current dry ice standards of 36 to 48 hours.

The Company has now reached the pre-commercialization stage with their CryoPort Express™ One-Way Shipper System, as noted in 3 separate press releases in October 2008, with their pilot shipping program announcements with Mayo Clinic, Quest Diagnostics and DuPont Crop Protection, respectively.

CyroPort's production line incorporates innovative technologies developed for aerospace and other hi tech industries to develop products that are more cost effective, easier to use and more functional than the traditional dry ice devices and methods currently used for the shipment of temperature-sensitive materials today.

Since 2002, CyroPort has manufactured a line of reusable cryogenic dry shippers and currently operates out of their 12,000 square feet of manufacturing facilities in Lake Forest, California.

CryoPort has historically manufactured and sold a line of reusable cryogenic dry shippers.  These reusable cryogenic dry shippers have served as the primarily vehicles for the development of the cryogenic technology that support the development of the Company's one time use dry cryogenic shippers, the CryoPort Express™ One-Way Shipper, but also are essential components of the infrastructure that supports testing and research activities of the pharmaceutical and biotechnology industries.

The conventional concept of cryogenic shipping employs the use of a high cost shipping container, used multiple times over several years.  The Company is now introducing the CryoPort Express™ One-Way Shipper System product manufactured from alternative, lower cost materials, which will significantly reduce overall operating costs. As with the reusable shippers, the one-way system will eliminate the need to replenish the refrigerant during transport.

The Company was originally formed to first develop a reusable line of cryogenic shippers and once underway, to begin the research and development of a disposable, one-way cryogenic shipper (the reusable line of cryogenic shippers has been in production since 2002).

During this time, they maintained research and development activities focused on the ultimate development of the CryoPort Express® One-Way Shipper System.

CryoPort is focused on accelerating the development and official launch of the CryoPort Express® One-Way Shipper System as they direct further resources to the successful introduction of this new product line into the market.

A broad launch to the general market is expected to follow the introductory distribution of the CryoPort Express® One-Way Shipper System. A higher volume demand is expected to develop as pharmaceutical products requiring cryogenic or frozen protection come on line.

Although the Company has fulfilled purchase orders for several significant vaccine manufacturers who are currently using their reusable shippers in clinical trials, each of these manufacturers are potential customers for the new CryoPort Express® One-Way Shipper System.

To further address the high volume ramp-up necessary to provide these customers with one-way shippers (beyond their current 12,000 sq. ft. manufacturing facilities), CryoPort is actively involved in negotiations for a manufacturing and distribution partnership with two large, well established manufacturing companies.

Although the Company has completed the research and development efforts associated with phase one of its new CryoPort Express® One-Way Shipper System product line, CryoPort continues to provide ongoing research associated with such, as it develops improvements in both the manufacturing processes and product materials for the purpose of achieving additional cost efficiencies.

As of August 10, 2008, CryoPort had an aggregate cash and cash equivalents and restricted cash balance of approximately $2,002,000.

Management projects that these proceeds will allow for the successful launch of the Company's new CryoPort Express® One-Way Shipper.

Based on current commitments and plans, the Company expects to fund its operations through use of cash on hand and sales revenues resulting from the full launch of the CryoPort Express® One-Way Shipper, as well as potential proceeds from exercising of warrants and/or additional long-term equity financing.

Company management is actively ramping up their sales, marketing and manufacturing activities towards the CryoPort Express® One-Way Shipper System product line launch.

Product definition: A dry cryogenic shipper is a device that uses liquid nitrogen which is contained inside a vacuum insulated bottle as a refrigerant to provide storage temperatures below minus 150 centigrade.

Reusable Cryogenic Dry Vapor Shippers.   The Company has developed three lines of reusable cryogenic dry vapor shippers which specifically address the evolving needs of the market place of temperature-critical, frozen and refrigerated transport of biologicals.  This line of shippers is capable of maintaining cryogenic temperatures of minus 150 centigrade for up to 10 days, which far surpass current dry ice usage and its 36 hour freeze time limitations before costly re-icing application.

These shippers are lightweight, low-cost, re-usable vapor phase liquid nitrogen storage containers that combine the best features of packaging, cryogenics and high vacuum technology.  Each of these three shippers is composed of an aluminum metallic Dewar flask, with a well for holding the biological material in the inner chamber.  A Dewar flask, or “thermos bottle,” is an example of a practical device in which the conduction, convection and radiation of heat are reduced as much as possible.

The Company believes that their products satisfies the needs of the markets that require the temperature-critical, frozen and refrigerated transport of biological materials, such as pharmaceutical clinical trials, gene biotechnology, infectious materials handling, and animal and human reproduction.

Due to the Company’s unique proprietary technology and innovative design, its shippers are less prone to losing functional hold time when not kept in an upright position than the competing products.

The Company’s continuing R&D efforts have lead to the introduction of smaller size units constructed of lower cost materials and utilizing high volume manufacturing methods that is making it practical to offer the CryoPort Express® One-Way Shipper System consisting of limited use cryogenic packages. It is the Company’s intent to continue their focus on its cutting-edge technology in the CryoPort Express® One-Way Shipper System.

An important feature of the Company’s shippers, including the CryoPort Express® One-Way Shipper is their compliance with the stringent packaging requirements of IATA Packing Instructions 602 and 650, respectively. The Company believes its shippers were the first cost-effective cryogenic shippers to comply with these regulations, which it hopes will substantially enhance product acceptance, and facilitate its marketing efforts for both its reusable shippers and its CryoPort Express® One-Way Shipper System.

Biological Material Holders for Infectious and Dangerous Goods. The Company has also developed a patented containment bag which is used in connection with the shipment of infectious or dangerous goods.  The CryoPort Express® One-Way Shipper and the DG1000 shipper include watertight primary receptacles. Up to five vials are then placed onto aluminum holders and up to fifteen holders (75 vials) are placed into an absorbent pouch, designed to absorb the entire contents of all the vials in the event of leakage.  This pouch containing up to 75 vials is then placed in a watertight secondary packaging plastic bag capable of withstanding cryogenic temperatures, and then sealed.

This entire package is then placed in a unique, patented, secondary containment bag, which is a plastic film based material, critical to the function of the overall cryogenic package.  These bags use a pressure-sensitive adhesive closure much like a common overnight courier envelope.  As a result, these bags are inherently disposable, one-use-only.  This bag is then placed into the well of the cryogenic shipper.

The Company's objective is to fully leverage its proprietary technology and developmental expertise to design, develop, manufacture and sell a new generation of cryogenic shipping devices to achieve a market leadership position worldwide.

Given the need for a temperature-sensitive shipping device that can cost effectively be used, the Company is rolling out their CryoPort Express® One-Way Shipper System, which utilizes a one-time use shipping device that performs as well as its reusable shippers (thus eliminating the need for return or disposal ), and the costs associated t with such plus the costs associated with maintaining and managing an inventory of shippers, as well as significantly minimizes loss of specimen viability during the shipping process.

The Company's products serve the shipping needs of companies across a broad spectrum of industries on a growing international level.

In order to expedite the Company's time to market and increase its market presence, they are currently negotiating to establish strategic alliances to facilitate the manufacture, promotion and distribution of its products, including alliances with shipping container manufacturers, integrated express companies, and freight forwarding companies.

Sales and Marketing

The Company has an internal sales and marketing group which manages both its direct sales efforts and its third party resellers, which include Air Liquide and Tegrant (formerly SCA Thermosafe) in addition to several other distributors and agents.

The Company's distribution channels cover the Americas, Europe and Asia.  During the year ended March 31, 2008 the Company had one distributor, Tegrant, which accounted for ­­­62% of the Company's overall sales volumes.  These sales were in the Company's reusable shipper products.

The Company's geographical sales for the year ended March 31, 2008 were as follows:

Customer Base

The Company believes that the primary customers for its dry vapor shippers (both the reusable and the CryoPort Express® One-Way Shipper System) are concentrated in the following markets for the following reasons:

• Pharmaceutical clinical trials
• Gene biotechnology
• Transport of infectious materials and dangerous goods
• Pharmaceutical distribution
• Human assisted reproduction artificial insemination

Pharmaceutical Clinical Trial: Every pharmaceutical company developing a new drug that must be approved by the Food and Drug Administration conducts clinical trials to, among other things, test the safety and efficacy of the potential new drug. While domestic shipping of these specimens is sometimes accomplished adequately using dry ice, international shipments present several problems, as dry ice, under the best of circumstances, can only provide freezing for up to 36 hours, in the absence of re-icing (which is quite costly).

Because shipments of packages internationally can be delayed for more than 36 hours due to flight cancellations, incorrect destinations, labor problems, ground logistics and safety reasons, dry ice is not always a reliable and cost effective option.  Clinical trial specimens are often irreplaceable because each one represents data at a prescribed point in time, in a series of specimens on a given patient, who may be participating in a trial for years.

The Company's shippers are ideally suited for this market, as the hold time provided by its shipper ensures that specimens can be sent over long distances with minimal concern that they will arrive in a condition that will cause their exclusion from the trial.

Furthermore, the IATA requires that all airborne shipments of laboratory specimens be transmitted in either IATA 650 or 602 certified packaging.  The Company has developed and obtained IATA certification of the CryoPort Express® One-Way Shipper System, it is ideally suited for this market, in particular due to the elimination of the cost to return the reusable shipper.

Gene Biotechnology. According to a recent edition of the Corporate Technology Directory, there are approximately 3600 pharmaceutical and biotechnology companies in the United States.  Of these companies, approximately 2600 are biotechnology companies and approximately 1000 are pharmaceutical companies. The gene biotechnology market includes basic and applied research and development in diverse areas such as stem cells, cloning, gene therapy, DNA tumor vaccines, tissue engineering, genomics, and blood products.  Company's participating in the foregoing fields rely on the frozen transport of specimens in connection with their research and development efforts.

Transport of Infectious Materials and Dangerous Goods. The transport of potentially infectious materials demands strict adherence to regulations that protect public safety while maintaining the viability of the material being shipped.   Pharmaceutical companies, private research laboratories and hospitals ship tissue cultures and microbiology specimens, which are also potentially infectious materials, between a variety of entities, including private and public health reference laboratories.   Almost all specimens in this infectious materials category require either a refrigerated or frozen environment.

The Company has developed the CryoPort Express® One-Way Shipper to meet the shipping requirements of this market.

Partly in response to the attack on the World Trade Center and the anthrax scare, government officials and health care professionals are focusing renewed attention on the possibility of attacks involving biological and chemical weapons such as anthrax, smallpox and sarin gas.  Efforts expended on research and development to counteract biowarfare agents requires the frozen transport of these agents to and from facilities conducting the research and development.  Vaccine research, including methods of vaccine delivery, also requires frozen transport.  The Company's CryoPort Express® One-Way Shipper is suited to this type of research and development as well.

Pharmaceutical Distribution. The current focus for the CryoPort Express® One-Way Shipper System is in the area of pharmaceutical distribution.  Since there are a significant number of therapeutic drugs and vaccines currently or soon to be, undergoing clinical trials, it will be necessary for the manufacturers to have a reliable and economical method of distribution to the physician who will administer the product to the patient.

These drugs are typically identified to individual patients and therefore will require a complete tracking history from the manufacturer to the patient.  The most reliable method of doing this is to ship a unit dosage specifically for each patient.  Because the drugs require maintenance at frozen or cryogenic temperatures, each such shipment will require a frozen or cryogenic shipping package.  The Company anticipates being in a position to service that need.

Assisted Human Reproduction. According to The Wall Street Journal, January 6, 2000 issue, 30,000 infants are born annually in the United States through artificial insemination and according to Department of Health statistics, 10 million Americans annually are affected by infertility problems.  It is estimated that this represents at least 50,000 doses of semen.

Since relatively few sperm banks provide donor semen, frozen shipping is almost always involved.  As with animal semen, human semen must be stored and shipped at cryogenic temperatures to retain viability, to stabilize the cells and to ensure reproducible results.  This can only be accomplished with the use of liquid nitrogen or LN 2 dry vapor shippers.  The Company anticipates that this market will continue to increase as this practice gains acceptance in new areas of the world.

Competition:

Within the Company's intended markets for the CryoPort Express® One-Way Shipper System, there is no currently known competition.

The Company intends to become competitive by reason of improved technological characteristics and by introducing the concept of disposability and single use products.

None of the traditional suppliers of cryogenic shippers is known to have competitive equipment.  The traditional suppliers, Chart Industries, Harsco, and Air Liquide have various models of dry shippers available that sell at prices that preclude any concept of disposability. Other advantageous, competitive factors for the Company, include the ability of the shipper to retain liquid nitrogen when placed in non-upright positions, the overall “leak-proofness” of the package which determines compliance with shipping regulations and the overall weight and volume of the package which determines shipping costs.

Industry Overview:

The Company's products are sold into a rapidly growing niche of the packaging industry focused on the temperature sensitive packaging and shipping of biological materials.  Expenditures for “value added” packaging for frozen transport have been increasing for the past several years and are expected to continue to increase even more in the future as more domestic and international biotechnology firms introduce pharmaceutical products that require continuous refrigeration at cryogenic temperatures.

This will require a greater dependence on passively controlled temperature transport systems (i.e., systems having no external power source). [References: Cryopak Industries – Investment Package/Annual Report and   US Department of Commerce - US Industrial Outlook. ]

The Company believes that growth in the following markets has resulted in the need for increased efficiencies and greater flexibility in the temperature sensitive packaging market:

• Pharmaceutical clinical trials, including transport of tissue culture samples
• Pharmaceutical commercial product distribution
• Transportation of diagnostic specimens
• Transportation of infectious materials
• Intra laboratory diagnostic testing
• Transport of temperature-sensitive specimens by courier
• Analysis of biological samples
• Gene biotechnology and vaccine production
• Food engineering

Many of the biological products in these above markets require transport in a frozen state as well as the need for shipping containers which have the ability to maintain a frozen, cryogenic environment (e.g., -150°C) for a period ranging from two to ten days (depending on the distance and mode of shipment).  These products include semen, embryo, tissue, tissue cultures, cultures of viruses and bacteria, enzymes, DNA materials, vaccines and certain pharmaceutical products.  In some instances, transport of these products requires temperatures at, or approaching, -196°C.

One problem faced by many companies operating in these specialized markets is the limited number of cryogenic shipping systems serving their needs, particularly in the areas of pharmaceutical companies conducting clinical trials.  The currently adopted protocol, and the most common method for packaging frozen transport in these industries is the use of solid carbon dioxide (dry ice).

Dry ice is used in shipping extensively to maintain a frozen state for a period of one to four days.  Dry ice is used in the transport of many biological products, such as pharmaceuticals, laboratory specimens and certain infectious materials that do not require true cryogenic temperatures.  The common approach to shipping these items via ground freight is to pack the product in a container, such as an expanded polystyrene (Styrofoam) box or a molded polyurethane box, with a variable quantity of dry ice.  The box is taped or strapped shut and shipped to its destination with freight charges based on its initial shipping weight.

With respect to shipments via specialized courier services, there is no standardized method or device currently in use for the purpose of transporting temperature-sensitive frozen biological specimens.  One common method for courier transport of biologicals is to place frozen specimens, refrigerated specimens, and ambient specimens into a compartmentalized container, similar in size to a 55 quart Coleman or Igloo cooler.  The freezer compartment in the container is loaded with a quantity of dry ice at minus 78°C, while the refrigerated compartment at 8°C utilizes ice substitutes.

Two manufacturers of the polystyrene and polyurethane containers frequently used in the shipping and courier transport of dry ice frozen specimens are Insulated Shipping Containers, Inc. and SCA Thermosafe (formerly Polyfoam Packers Corporation).  When these containers are used with dry ice, the average sublimation rate (e.g., the rate at which dry ice turns from a solid to a gaseous state) in a container with a one and one-half inch wall thickness is slightly less than three pounds per 24 hours.  Other existing refrigerant systems employ the use of gel packs and ice substitutes for temperature maintenance.  Gels and eutectic solutions (phase changing materials) with a wide range of phasing temperatures have been developed in recent years to meet the needs of products with varying specific temperature control requirements.

The use of dry ice and ice substitutes, however, regardless of external packaging used, are frequently inadequate because they do not provide low enough storage temperatures and, in the case of dry ice, last for only a few days without re-icing.  As a result, companies run the risk of increased costs due to lost specimens and additional shipping charges due to the need to re-ice.

Due to the limitations of dry ice, shipment of specimens at true cryogenic temperatures can only be accomplished using liquid nitrogen (LN 2 ) dry vapor shippers, or by shipping over actual liquid nitrogen.  While such shippers provide solutions to the issues encountered when shipping with dry ice, they too are experiencing some criticisms by users or potential users.

For example, the cost for these products typically can range from $650 to $3,000 per unit, which can substantially limit their use for the transport of many common biologicals, particularly with respect to small quantities such as is the case with direct to the physician drug delivery.   Because of the initial cost and limited production of these containers, they are designed to be reusable.  However, the cost of returning these heavy containers can be significant, particularly in international markets, because most applications require only one-way shipping.

Another problem with these existing systems relates to the hold time of the unit in a normal, upright position versus the hold time when the unit is placed on its side or inverted.  The liquid nitrogen can leak out of the container when it is positioned on its side or inverted.  This leaking will compromise the dependability of these dry shippers, particularly when used in circumstances requiring lengthy shipping times.  The Company's current reusable shippers have only a 40% reduction in hold time when placed on their sides or inverted.  One of the Company's significant competitors, Chart Industries, Inc., publishes on their web site, a 60% reduction in hold time when its units are placed on their side and a 90% reduction when its units are inverted.   Since other competitors use similar absorbent materials to that used by Chart Industries, Inc., the Company believes the performance characteristics will be similar for their products of this particular size and volume.

Finally, these containers are often promoted as being durable due to their metal construction.  However, rough handling can result in the puncturing of the outer shell or cracking at the neck area, resulting in the loss of the high vacuum insulation.  This renders the shippers useless.  A hard-shell shipping enclosure is available as an optional accessory to provide additional protection for these units at an additional cost to the user.  The metal construction also adds to the weight of the container, thereby adding substantially to shipping costs.

The CryoPort Solution:

During the past several years, a number of trends have emerged in the temperature-sensitive packaging industry as a result of economic and technological changes.  The Company has focused its product development efforts to respond to what it perceives to be the more significant of these trends, specifically the following:

1. Smaller, more efficient packaging (increasing thermal density)
2. Emphasis on decreasing costs and system simplification
3. Need for turnkey services
4. Development of international programs and markets
5. Centralization of commercial products and services
6. Development of regulatory standards

Smaller, More Efficient Packaging. Advances in both materials and manufacturing technology have made it possible to reduce the size, weight, complexity and cost of packaging, while increasing the capabilities of high performance packaging.  These advances are the result of developments in the aerospace industry in the areas of high strength, low weight materials and thermal technology.

The Company is applying this technology in its product development efforts, and believes that it is at the forefront of applying this technology in the public sector.  The Company's development efforts are focused on the application of polymers and high volume metal casting and forming methods that have traditionally been excluded from the cryogenic industry because product quantities have been too low to efficiently utilize these materials and methods.

Cryoport currently manufactures its reusable shipper with an approximate liquid nitrogen volume of five liters.  The Company's future intended products will be a range of shippers with liquid nitrogen capacities from approximately one to five liters in size.

Emphasis on Decreasing Costs and System Simplification. Because current dry vapor LN 2 shipping containers are expensive, many users do not keep an ample supply on hand.  Consequently, some users require that these be returned promptly.  This often results in very expensive express return shipping which will significantly magnify as shipping volumes increase.  This has created a demand for smaller, lower cost dry vapor LN 2 shipping containers.   In addition, many users have expressed a strong interest in the production of a dry vapor LN 2 shipper that is inexpensive enough to be used in a disposable or limited usage manner.

The current sales price of CryoPort's reusable shippers range from $735 to $1,095.

The price range for the new CryoPort Express® One-Way Shipper System ranges from $75 to $100 per use plus transportation costs, depending on size and contractual commitments.

Peter Berry
President and Chief Executive Officer

Mr. Berry became the Company’s President, Chief Executive Officer and a member of the Company’s Board of Directors in connection with the Share Exchange Agreement. Mr. Berry joined CryoPort Systems, Inc. as a consultant in 2002 and became its President, Chief Executive Officer, Chief Operating Officer and a member of its Board of Directors in 2003.  Prior to joining the Company, Mr. Berry was Vice President Sales & Marketing for BOC Cryostar, AG in Switzerland from 1996 to 2000 and principal of a private consulting practice from 2001 to 2003.  Mr. Berry has over 30 years executive experience in cryogenic equipment with Union Carbide, BOC Group and MVE International. He also has business start up, turnaround, sales/marketing and operations background experience, both domestic and international, in manufacturing and service based industries.

Dee S. Kelly, CPA
Vice President, Finance

Ms. Kelly became Vice President of Finance for the Company in August 2003.  Ms. Kelly was formerly with Ernst & Young, LLP and has 24 years experience in public and private accounting.  She has held executive financial positions with international bio-tech and medical device manufacturers.  Ms. Kelly recently served as Vice President, Controller for Equifax Financial Services, Inc. from 1995 to 2000.  Ms. Kelly joined the Company in 2003. Prior to joining the Company, Ms. Kelly was Corporate Controller for MacGillivray Freeman Films from 2000 to 2001, Corporate Controller for Masimo Corporation, a manufacturer of patient monitoring devices from 2001 to 2002 and principal of a private consulting practice since 2002.

Mr. Len Suelter
Vice President, Engineering

Mr. Suelter has over 25 years in the Cryogenic Equipment industry and was a former manager of engineering for Union Carbide’s Cryogenic businesses.

Kenneth Carlson, MBA
Vice President, Sales & Marketing

Mr. Carlson became Vice President of Sales & Marketing for the Company in August, 2005. Prior to joining the Company, Mr. Carlson was Vice President, General Manager of Phoenix Life Solutions, LLC, a marketer of defibrillators and emergency response systems. From 2000 to 2003, Mr. Carlson was Vice President, Sales for Falcon Waterfree Technologies, LLC, and from 1999 to 2000 he served as Vice President, Sales for Titan Scan Corporation, a manufacturer of electron-beam sterilization systems for medical products.  Mr. Carlson has over 20 years of experience in sales, marketing and senior management roles for medical device and healthcare technology companies such as Johnson & Johnson and Zimmer, Inc. His background has involved strategic planning for start-up and early stage companies, including product introduction and distribution planning. Mr. Carlson received his Bachelor of Science degree from the University of Southern California and his Masters of Business degree from Arizona State University.

Bret Bollinger
Vice President, Operations

Mr. Bollinger became Vice President of Operations for CryoPort in February 2008. Prior to joining CryoPort, since July of 2003, Mr. Bollinger was Director of Operations and Engineering for Triangle Brass Manufacturing. From July of 2001 through July 2003, Mr. Bollinger served as a Business Process Consultant for Cardinal Health and from July of 1999 to July of 2001, he served as Operations and Order Fulfillment Manager for Ingersoll-Rand’s Falcon Lock Company. Mr. Bollinger has extensive background in domestic and international manufacturing environments. In addition, he has experience in new product design and implementation. Mr. Bollinger holds a Bachelor of Science in Mechanical Engineering from Sacramento State University.

Board of Directors

Peter Berry, Director, President and CEO
(bio above)

Gary C. Cannon, Director, Corporate Counsel and Secretary

Mr. Cannon became the Company’s Secretary and a member of the Company’s Board of Directors in June 2005. Prior to joining the Company, Mr. Cannon was securities counsel and compliance officer for The Affordable Energy Group, Inc. from November 2004 to May 2005, and general and securities counsel for World Transport Authority, Inc. from July 2003 to November 2004. Mr. Cannon was in private practice from August 2000 to July 2003, and has practiced law for the past 21 years, representing all sizes of businesses in such areas as, formation, mergers and acquisitions, financing transactions, tax planning, and employee relations. Mr. Cannon has done extensive securities work and has served as a compliance officer for companies with respect to the Sarbanes-Oxley Act, and other compliance matters. Mr. Cannon obtained his Juris Doctorate from National University School of Law, his Masters of Business degree from National University and his Bachelor of Arts from United States International University.

Adam M.  Michelin, Director and Audit Committee Chair

Mr. Michelin became a member of the Company’s Board of Directors in June 2005.  Mr. Michelin is currently the Chief Executive Officer, of Naturade, Inc.a position he has held since November, 2007.  Mr. Michelin has held several leadership positions including CEO for Enterprise Group from March 2005, Principle of Kibel Green, Inc., a position he held for 11 years prior to joining Enterprise Group, and Partner of KPMG for 10 years.  Mr. Michelin has over 30 years of practice in the areas of executive leadership, operations and is very experienced in evaluating, structuring and implementing solutions for companies in operational and/or financial crisis.  Mr. Michelin received his Juris Doctorate from the University of West Los Angeles and his Bachelor of Science from Tri State University.

Thomas S. Fischer, PhD., Vice Chairman, Compensation and Governance Committee Chair

Has 30 years experience as a healthcare executive with a special emphasis on using information, analytic tools and technology to solve problems and improve operations.  Currently retired, he consults in the healthcare sector.  Dr. Fischer served as Senior Vice President and Chief Administrative Officer at Blue Shield of California from 1997 to 1999, and as Senior Vice President, Chief Information Officer from 1994 to 1997.  Prior to Blue Shield, he held senior management positions with Kaiser Foundation Health Plan, Inc. for 12 years.  Dr. Fischer obtained his Doctor of Philosophy in Mathematics from the University of Nebraska and his Bachelor of Science and Master of Science degrees from Portland State University.

Stephen L. Scott, Director

Mr. Scott is a management and organizational consultant with over 20-years experience with diverse manufacturing businesses, including a specific background with developmental stage companies. Since 1996, Mr. Scott has been President of Technology Acquisition Group, providing expertise in corporate growth planning, strategic partner development, finance, operations, team building, product opportunity identification, corporate re-engineering and mergers and acquisitions. In addition to early stage and small companies, he has performed projects with Fortune 1000 firms such as IBM, GE, AT&T, Bristol-Myers Squibb, Warner-Lambert, Johnson & Johnson and Ayerst-Wyeth. Mr. Scott received his Juris Doctorate and Masters of Business Administration degrees from National University and his Bachelor of Science degree from the University of Akron.

Advisory Board Members

Larry O'Toole
Currently the CEO of Dorma Industries North America - has a broad business, strategic and development background in manufacturing based industries. He was a past Vice President and Division President at Black and Decker, Ingersoll Rand, and CEO of Protection Systems Inc.

Steve Puente
Director of Human Resources and member of the Compensation and Governance Committee with an extensive HR corporate background. He was a past Corporate Vice President of HR for Kraft Foods, General Foods, and Quaker State Corporate.

David Werner
Currently a partner and owner of Aerofit – formerly with Peat Marwick with extensive experience in public and privately held companies. He was a Vice President of Finance at Lear Sigler and Senior Vice President and board member at Kanar Industries, before becoming CFO of Dayrunner.

Rick Kriss
Mr. Kriss is presently an industry consultant and co-founder and President of KLATU Networks, a software development company focused on wireless sensor monitoring and asset location/tracking systems in specialized vertical markets.

Heritage First Capital & Equity Research Group (HFC), based upon information supplied by sources believed to be reliable, herein prepared all material. The information contained herein is not guaranteed by HFC to be accurate, and should not be considered to be all-inclusive. The company that is discussed in this opinion may not have approved some or any of the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. A company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. HFC is not a licensed broker, broker dealer, market marker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on www.microcapmoney.com. HFC has been paid 50,000 restricted 144 shares of CYRX stock forsix months of coverage on MicrocapMoney.com, TripleCrownStocks.com, including opt-in subscriber emailings to each respective website’s members and article features in the Smallcap Brief quarterly newsletter by CryoPort, Inc. HFC's affiliates, managers, directors and employees may have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value. HFC will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on their judgment of the market.