Investment Opportunities. In economic terms, the totalcosts due to osteoporosis are $35 billion worldwide; the total bone disease diagnostics and therapies market will reach $90 - 100 billion within the next two decades. Based on current sales of therapies that inhibit bone thining without curing the disease, an orally available agent for stimulating bone formation could be expected to reach annual sales of $1B. Topical or intravenous agents for bone healing would be expected to reach $200 - 400M in annual sales. Velcura’s Target Discovery Program. Velcura Therapeutics, Inc develops biological, DNA-based, or small molecule therapies directed at accelerating bone formation. Our long-term goal is to become a fully integrated biopharmaceutical company. Our initial objectives, then, are to continue our in-house target discovery program Discoveries from this program are partnered with major pharmaceutical companies to co-develop these into therapies. Velcura is seeking long-lasting strategic partnerships with companies interested in bone replacement or repair. This provides Velcura with revenues in the form of R&D and milestone payments. Velcura’s Strategic Partner Program. Since the timeline for development of a novel pharmaceutical is 12 to 15 years, and costs upwards of $800 million. Velcura’s partnerships with biopharmaceutical companies provide them with a value proposition that shortens their R&D development time. Currently, biopharmaceutical companies spend $5 – 10B is spent on discovery and target validation, with up to 20% of this budget being spent in bone related disease in some companies. Increasingly, such firms outsource their discovery phase to smaller firms and actively participate only when lead molecules or compounds (drugs) are identified, in order to then design and proceed with clinical testing and trials. Velcura’s Intellectual Property: The Company’s unique position is attributable to the ability to isolate human cells and efficiently generate human bone outside the body. Coupled with proprietary biological assays and computer-assisted analysis, this allows us to rapidly assess the effects of target genes or compounds on bone formation. Five patents (two issued – Nos. 6,576,465 and. 5,858,782 - the others pending) cover this aspect of Velcura’s intellectual property. These patents cover all aspects of the use of human bone precursor cells that develop into bone-forming cells, of bone accessory cells that produce novel bone growth factors, and of the process for the formations of bone outside the body. An additional three patents have been filed that cover the process of bone metastasis in cancer. Our on-going IP plan involves using both offensive and defensive patent strategies to further strengthen our position as the only company that can grow human bone and utilize that process for drug discovery (and/or therapeutic applications). We are currently preparing a filing on our first molecular target for bone formation. Please join Velcura’s quest for excellence in the expanding field of bone therapy by contacting us as follows: Michael Long, CEO: mwlong@velcura.com Mary Ann Alger CFO: maalger@velcura.com P 734-973-1000