This Year's Highlights

• Incept's first fertility chip product has produced a 160% improvement in embryo development rates and 80% improvement in cell formation.
• U-M labs have been awarded over $1.9MM in federal, state, and local grants to fund ongoing R&D of Incept's products since the spring of 2005.
• The PinFlo technology was recognized for its innovative approach for microfluidic cell biology and awarded the 2004 national collegiate inventors award.

Anticipated Highlights

• New management talent expected in late 2006 and early 2007 including Senior Product Manager, V.P. Manufacturing and Outsourcing, and V.P. Product Development.
• Regulatory Pathway as a non-significant risk 510(k)device to be confirmed in 2006.
• Incept's embryo development data was selected from over 2,000 entries to present as a finalist at the 2006 North American Fertility Conference in October.

Corporate Mission

Incept BioSystems (Ann Arbor, MI) has developed a breakthrough family of products that increase the potential for successful pregnancy for those undergoing In Vitro Fertilization (IVF). The Company is the first to develop a proprietary cell biology product platform that mimics the physiologic conditions found in the body, dramatically improving how embryos and cell tissue develop in the laboratory. Its products are designed to meet the unique demands of infertility professionals who manage the embryo creation, development, selection, and freezing process. The Company?s mission is to become the premier innovator and supplier for next-generation In Vitro Fertilization embryo management systems so that IVF can become a viable, cost effective treatment option for all couples that suffer from infertility and wish to have children. The Company?s vision is to be the first company to provide practical artificial living system products to enable breakthrough discoveries with lung, liver, stem cell, and other specialized cells that can lead to new treatments for afflictions that currently have no viable options.