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Update On Development of Factor VIII Biopump

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Medgenics, Inc. has announced an update to its previously announced agreement with Baxter Healthcare Corporation for the joint development of the Factor VIII Biopump which expired on September 30, 2011.

The Company confirms that it is in active discussions with Baxter regarding the terms for possible further collaboration.

The Company will provide a further update with regard to the outcome of such discussions as soon as it is able to do so.

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