Lattice Biologics Ltd. Reports Second Quarter 2016 Highlights - Seite 2

As indicated above, the Company continues efforts to diversify the sales mix across the new product lines added in 2015: Lattice Biologics' Acellular Dermal Matrix scaffold (AdMatrix) and Demineralized Bone Matrix putty. As at March 31, 2016, the Company had built adequate inventory levels of the new product lines in preparation for the growth in sales. 68% of the Company's $2,232,390 inventory is comprised of both finished and unfinished goods for the new product lines.

2016 Business Outlook:

The Company remains focused on raising additional capital to: assist with its working capital constraint; fulfill open purchase orders; launch of the Company's new product lines; and support R&D efforts. Appropriate working capital conditions will allow the Company to expand current operations by accepting and processing a greater number of donors each month and also to launch new high-margin product lines. If Lattice Biologics is successful in its financing efforts, the Company expects to be cash flow positive by the end of fiscal 2016.

Furthermore, Lattice Biologics is proactively working to complete all additions to its Scientific Advisory Boards (SABs) which are comprised of strategic Key Opinion Leaders (KOLs) in each of the Company's targeted surgical specialties. These professionals play a significant role in influencing industry perception and opinion and can be instrumental in the recruitment of new surgeon partners and generation of critical clinical data.

"I am extremely pleased with our efforts to build out our SAB team as well as our M&A and R&D efforts to further our growth trajectory," states CEO Guy Cook. "EBITDA will be a key indicator of our positive growth position while key surgeon recruitment will help make Lattice a leader in delivering top-notch care in precision medicine."

Lattice Biologics Ltd.
Guy Cook,
Chief Executive Officer
Telephone No: [phone]

About Lattice Biologics Ltd.:

Lattice Biologics recently completed its RTO, becoming a publically traded company on January 4, 2016 and is traded on the TSX-V under the symbol: LBL. The Company is an emerging personalized/precision medicine leader in the field of cellular therapies and tissue engineering, with a focus on bone, skin, and cartilage regeneration.