FOR IMMEDIATE RELEASE

Valley Center, CA - March 5, 2002 - Fallbrook Engineering announced today that is has been awarded a Phase II SBIR grant by the National Heart, Lung and Blood Institute. The grant, entitled "Cord Blood Collection Device," is the continuation of Phase I grant and prior efforts by Fallbrook Engineering which resulted in three United States patents.

The grant supports research and prototype development, already underway at Fallbrook, that are expected to significantly improve the safety and efficiency of devices for collecting umbilical cord blood immediately after childbirth. Demand is increasing steadily for such cord blood, which is becoming the source-of-choice for hematopoeitic progenitor cells, most commonly referred to as "stem cells."

There are nearly 4 million births annually in the US and 135 million worldwide. The potential uses for cord blood stem cells include the treatment of malignant diseases such as Hodgkin's disease and acute leukemia, and non-malignant diseases such as sickle cell disease and thalassemia. Other potential uses for stem cells include treatment of spinal cord injuries, diabetes, and Parkinson's and Alzheimer's disease.

Richard Meyst, vice president of Fallbrook Engineering and CEO of start-up Cord Cell TechnologiesTM states "There is a compelling market need for new technology that gives healthcare workers a simple, safer and more efficient way to handle cord blood collection. We are pleased to receive this grant, which validates the strength of Fallbrook's technology and our plans to solve this problem."

Fallbrook Engineering (www.fallbrook-eng.com) is a privately-held product development, management and engineering services firm serving healthcare companies worldwide and known for its history of money making, creative and on-time service.

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