Mr. Frank Gleeson reports

SATELLOS BIOSCIENCE ANNOUNCES SIGNIFICANT INCREASE IN MUSCLE SIZE AND FUNCTION IN DUCHENNE MUSCULAR DYSTROPHY DISEASE MODEL

Satellos Bioscience Inc. has released results from multiple preclinical studies in a disease model of Duchenne muscular dystrophy. An updated corporate presentation has been posted to the company's website.

Satellos' proprietary Myoregenx assay platform identified a protein kinase (codenamed K9) as a potential drug target to modulate polarity in muscle stem cells. Using a known inhibitor of this kinase target as a reference compound for generating proof of concept to guide future drug development efforts with its own compounds, Satellos treated Mdx mice, a gold-standard experimental model for studying Duchenne, for a period of two weeks. Drug-treated muscles were larger in size than untreated control muscles by an average of 40 per cent and displayed about a 25-per-cent increase in ability to generate force, approaching levels seen in normal mice.

"To the best of our knowledge, these preclinical results are unprecedented for a small molecule therapeutic approach to treat Duchenne as they represent the first time a small molecule has induced these levels of muscle growth that translate to clear functional benefit -- and so rapidly," said Frank Gleeson, president and chief executive officer of Satellos. "We are so energized by seeing such an effect on regeneration because of the potential it represents for a future treatment to regenerate functional muscle in patients."

Added Dr. Michael Rudnicki, the company's co-founder and chief scientific officer, "We believe these results continue to solidify our mechanistic approach of targeting the restoration of muscle regeneration through modulating muscle stem cell polarity."

Continued Dr. Phil Lambert, chief technical officer with overall responsibility for drug development at Satellos: "We are very excited by this data set particularly considering that the reference compound was not specifically designed for the treatment of a muscle disease. These results provide an excellent experimental road map for the continued development of SAT-3153, a proprietary compound specifically designed by Satellos scientists to modulate polarity in muscle stem cells."

Satellos believes that a dysfunction in the normal process of stem cell polarity in response to muscle damage represents a previously unrecognized root cause of Duchenne. The goal of correcting polarity in Duchenne is to restore the body's innate ability to regenerate muscle in response to the ongoing damage experienced by people living with Duchenne. SAT-3153 has been designated by Satellos as its lead drug candidate and the company is pursuing pre-IND [investigational new drug] development activities.

About Satellos Bioscience Inc.

Satellos is a biotechnology company dedicated to developing life-changing medicines to treat degenerative muscle conditions. The company's scientists discovered what it believes to be a previously unrecognized root cause of skeletal muscle degeneration, one which has the potential to transform how muscle disorders are treated. The company's scientific founder, Dr. Rudnicki, is a thought leader who discovered and has shown how muscle stem cells regulate muscle repair and growth throughout life. He has shown how defects in a process known as stem cell polarity, which controls how muscle stem cells divide to create muscle progenitor cells, lead to a failure of muscle regeneration in Duchenne and potentially other muscle disorders. As a result of this continuing inability to produce sufficient numbers of new muscle cells, the muscles of people living with Duchenne are unable to keep up with and repair the continuous and accumulating damage their muscles experience. Satellos' lead program is focused on developing an oral therapeutic drug (that is, a pill) intended to correct muscle stem cell polarity and restore the body's innate muscle repair and regeneration process. The company believes its unique therapeutic approach represents a potential disease modifying treatment for Duchenne and other dystrophies, offering new hope to patients. To expand the company's programs to other degenerative muscle conditions or disorders, Satellos has created a proprietary discovery platform, Myoregenx, which the company utilizes to identify disease situations where deficits in muscle stem cell polarity and regeneration occur and are amenable to therapeutic treatment.

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