- Underscores Potential Application of Chrysalin to Enhance Bone and Tissue Repair - TEMPE, Ariz., Sept. 21 /PRNewswire-FirstCall/ -- OrthoLogic Corp. (NASDAQ: OLGC) today announced that findings reported in the online version of the Journal of Cellular Physiology showed that the investigational drug Chrysalin (TP508), currently being studied in bone and tissue repair, accelerates the growth of new blood vessels. The preclinical study showed that Chrysalin enhances the growth of new blood vessels that have already sprouted (neovascularization) -- which can be an advantage for bone and tissue repair. "This study shows that Chrysalin acts early to enhance new blood vessel growth in damaged tissue," said Dr. James Ryaby, one of the researchers and chief scientific officer of OrthoLogic. "This is one of several studies published demonstrating the science behind Chrysalin." Past preclinical studies have shown that Chrysalin stimulates wound repair and fracture healing, and that the response is associated with enhanced growth of new blood vessels. The new study examined more closely the mechanism by which Chrysalin stimulates neovascularization. "This study provides further support for our Chrysalin clinical development program currently underway in fracture repair and diabetic foot ulcer healing," said Dr. James Pusey, chief executive officer of OrthoLogic. "In fracture repair, our most advanced program, we are evaluating the efficacy and safety of Chrysalin in the largest phase 3 fracture study ever conducted, including 503 patients with wrist fractures. We expect results of this study to be available in the first half of 2006." Study and Findings In the study, researchers assessed the ability of Chrysalin to stimulate neovascularization in cultured fragments of blood vessels from rats. Chrysalin stimulated new blood vessel sprouts to grow as much or more than another potent blood vessel growth stimulator, vascular endothelial growth factor (VEGF). In contrast to Chrysalin, fully intact thrombin had no effect or even inhibited the growth of blood vessel sprouts, suggesting Chrysalin acts through a non-proteolytic receptor pathway. About Chrysalin(R) Chrysalin (TP508) is a synthetic 23-amino acid peptide that represents the receptor-binding domain of the human thrombin molecule, the naturally occurring agent responsible for blood clotting and initiating the natural healing cascade of cellular events responsible for tissue repair -- both soft tissue and bone. Thrombin acts as a signaling molecule to initiate the early stages of tissue repair. Since all cells contain high-affinity thrombin receptors, it is widely accepted that thrombin plays a larger role in the natural healing cascade than just forming blood clots. Scientists began developing Chrysalin in 1985, when a class of synthetic peptides was developed representing a specific receptor-binding domain of thrombin that activates specific tissue repair signals. Today, OrthoLogic is exclusively developing several drug candidates based on the Chrysalin peptide, which mimic part of the thrombin response without stimulating blood clotting, and therefore have the potential to accelerate the natural healing cascade. About OrthoLogic OrthoLogic is a biotechnology company focused on the development and commercialization of the novel synthetic peptide Chrysalin(R) (TP508) in three lead indications, all of which represent areas of significant unmet medical need -- fracture repair, diabetic foot ulcer healing and cartilage defect repair. Based on the Company's pioneering scientific research of the natural healing cascade, OrthoLogic has become the leading company focused on tissue and bone repair. OrthoLogic is committed to developing a pipeline of novel peptides and other molecules aimed at helping patients with equally under-served conditions. The Company maintains exclusive worldwide rights for Chrysalin. OrthoLogic's corporate headquarters are in Tempe, Arizona. For more information, please visit the company's Web site: http://www.orthologic.com/. Statements in this press release or otherwise attributable to OrthoLogic regarding our business that are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include the timing and acceptability of FDA filings and the efficacy and marketability of potential products, involve risks and uncertainties that could cause actual results to differ materially from predicted results. These risks include: delays in obtaining or inability to obtain FDA, institutional review board or other regulatory approvals of preclinical or clinical testing; unfavorable outcomes in our preclinical and clinical testing; the development by others of competing technologies and therapeutics that may have greater efficacy or lower cost; delays in obtaining or inability to obtain FDA or other necessary regulatory approval of our products; our inability to successfully and cost effectively develop or outsource manufacturing and marketing of any products we are able to bring to market; changes in FDA or other regulations that affect our ability to obtain regulatory approval of our products, increase our manufacturing costs or limit our ability to market our products; our possible need for additional capital in the future to fund the continued development of our Chrysalin Product Platform; and other factors discussed in our Form 10-K for the fiscal year ended December 31, 2004 our Form 10-Q for the quarter ended March 30, 2005, and other documents we file with the Securities and Exchange Commission. DATASOURCE: OrthoLogic Corp. CONTACT: media, Lauren Tortorete of Biosector 2, +1-212-845-5609; or investors, Melanie Friedman of Stern Investor Relations, +1-212-362-1200, both for OrthoLogic Corp. Web site: http://www.orthologic.com/

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