BMPI is an osteobiologics company engaged in completing the pivotal clinical trial for its lead product (GEM 21S(R): Growth-factor Enhanced Matrix) which combines an already FDA approved tissue growth factor, recombinant human platelet-derived growth factor BB (rhPDGF-BB) with an already FDA cleared resorbable synthetic bone matrix (Beta-tricalcium phosphate, Beta-TCP) for the treatment of periodontal and cranio-maxillofacial (CMF) osseous defects (bone defects of the jaws, head and face). The Company has in its pipeline therapeutic products combining tissue growth factors and bone allograft (GEM 21A(R)) with proof-of-principal clinical data as well as products for the treatment of osteoporotic fractures and other orthopedic- related indications (GEM-Os(R)) in the pre-clinical development stage. Moreover, the Company is also developing a companion diagnostic product for the diagnosis of active periodontal disease to complement its therapeutic products.

Memphis Biomed Ventures (MB Ventures) has strong domain expertise in the musculoskeletal industry. "We are very optimistic about the prospects for BioMimetic. We believe their innovative technology will meet significant unmet clinical needs in the fields of periodontology, craniofacial surgery and orthopaedic medicine. We are eager to do our part to contribute to the Company's success," states Gary Stevenson, Managing Partner at MB Ventures. Stevenson will join BMPI's Board of Directors.

Burrill and Company, Holden and Novo A/S, the Series A investors, all participated in the Series B financing. According to John Kim, MD, Managing Director at Burrill and Company, "BioMimetics has demonstrated an impressive ability to execute its clinical development plan ahead of schedule and under budget. With the expanded pipeline into broader orthopaedic opportunities, we believe that BioMimetic has a bright future."

"We feel fortunate to have received term sheets from two potential lead investors, especially in this difficult venture financing environment," indicated Dr. Samuel Lynch, BMPI's Chairman and CEO.

"Both offers were attractive, but ultimately we chose MB Ventures because of their strong relationships and expertise in the musculoskeletal industry. This financing will provide us the resources required to continue our product development efforts in both the periodontal and orthopedic indications and complete several, major value-generating milestones," Lynch added.

New Applications for GEM-Os(TM)

Fractures, revision joint replacements and spinal fusions, all growing problems among an aging population, require bone-grafting procedures to insure timely healing. As the population ages, these will become increasingly common problems faced by the orthopaedic community. Currently available surgical procedures treating skeletal conditions such as these often require use of a patient's own bone from a second site, incurring resultant pain and infection risk. The market for osteobiologics has been projected to exceed $2 billion within three years.

About BioMimetic Pharmaceuticals, Inc.

BMPI is a private company focused on tissue engineering and the development, commercialization and marketing of protein therapeutics for the healing and restoration of bone and other tissues. The company is currently evaluating strategic alliances for commercialization of its periodontal and orthopaedic products, worldwide. For further information, visit http://www.biomimetics.com.