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HOME >> Investor Relations >> Top Message >> Message Archive (January 5, 2010 )

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To all of our investors - January 5, 2010 -

Yosuke Ozawa, President and CEO

I would like to thank all of our stockholders and many stakeholders for your unwavering support as Japan Tissue Engineering (J-TEC) moves forward with the industrialization of tissue engineered medical products, and I look forward to your continuing support in 2010.

First anniversary of the introduction of JACE

Eligible for health insurance coverage since January 2009, our autologous cultured epidermis product, JACE, has made firm steps towards establishing steady sales results. With the cooperation of medical clinics and hospitals, we are seeing wider usage of JACE as a treatment for patients suffering from severe burns. Because there are limits to the number of layers which can be used, standards regarding the medical facility level, and other conditions which must be met in order to be eligible for health insurance coverage, not all orders lead directly to sales for J-TEC, but during this one-year period, we have had dozens of orders from various medical facilities. I am gratified and pleased that JACE is able to make a life-saving contribution for many patients.

Second anniversary of J-TEC's transition to a publicly traded company

Thanks to your support, two years have now passed since J-TEC became a publicly traded company and J-TEC has gained substantial learning and experience during this time. Referring to the advice from our many stockholders, we have developed IR and PR activities. During this time, although we have seen significant results from the business aspect, delays in the progress of product development and the downward revision of our profit and loss plan has caused some concern to our stockholders and I regret the trouble this is causing you. Being a bio-venture does not mean that we can continue operating in the red indefinitely. Nor, do we intend to blame low stock prices on the external business environment. In order to ensure that our stockholders will feel comfortable supporting this company over the long term, as much as possible during 2010, I am willing to explain about the business directly to all investors nationwide (and overseas).

The Dynamic J-TEC Strategy

The Dynamic J-TEC StrategyThe national economy in Japan remains uncertain and our country’s medical care establishment is facing many problems. J-TEC must find a way to progress and evolve within this environment. Making effective use of the valuable equity entrusted to us by our stockholders, J-TEC must focus on our managerial resources and make choices about our business domain in order to propel J-TEC forward. Choice and focus are often mentioned as a general concept, but in our case, this means focusing our managerial resources on expanding sales of JACE as our core business, and choosing our next strategy. This strategy incorporates slightly out-of-the ordinary policies, including inquiries of public opinion. Of course, the next strategy also includes policies which will aim for a swift transition to profitability. Already under discussion for the past year, we call these out-of-the-ordinary policies the “Dynamic J-TEC Strategy”. We are working to meet your expectations, by challenging ourselves to reach the next stage of development through a firm focus on our managerial resources. To our current and potential stockholders, we ask for your continuing support of an emerging and out-of-the-ordinary J-TEC.

January 5, 2010
Yosuke Ozawa
President & CEO
Japan Tissue Engineering Co., Ltd.