Cord Blood America CEO Statement to Shareholders

LAS VEGAS, Sept. 15, 2011 /PRNewswire/ --

Dear Fellow Cord Blood America Shareholders:

We receive e-mails, calls or other forms of communications daily concerned about our stock price.  We share that concern.  Please know that your management teams also are shareholders and seeing the current market value is disappointing to all of us.

We are disappointed that the market currently does not recognize the very strong fundamentals of our Company.  It does not value our achievements, as it did in previous years passed.  We know it is important to continually communicate our positive accomplishments...and I promise to you that we will not quit.  Ever.

In the last two years we have worked diligently to grow the company.  We believe our numbers reflect that effort.  Organic growth, acquisitions and diversification of revenue streams have been our mantra.  Our credibility was execution on those three, and I feel to a large extent, we achieved that.  However the share price does not reflect it, and, ultimately, I vow that we will spend every day working to restore a share price that more accurately reflects the fair value of the Company today, and in the future.

I would like to address in this note issues concerning the Present Value of our Company.  Frankly, we should be valued well above our current market cap.  Yes, all management teams say that, however, our data truly reflects an undervaluation.  These are some of the key reasons:

* The net present value of our annual storage revenues alone, not including any new business whatsoever, while in a down market is still worth over $11,000,000 and can be argued much higher than this number.

* Total revenue due to us over the next 18 years from annual storage agreements alone, again, not inclusive of any new business, estimated to be in excess of $25,000,000

* 61% positive revenue growth in first six months of 2011

* 100% positive gross profit growth in same time period coupled with ever increasing gross margin percentages

* 37% loss reduction in same time period

* A strong organic growth engine adding 15 new insurance company contracts in the past 12 months

* Tracking towards total revenues of $6,000,000.  Domestic sales hit highest levels in an August month since 2007 and trends indicate more positive outcomes for September. We have added 15 new insurance contracts in 2011.  While they take time to bear fruit, we are hopeful we are seeing the beginning of this effort.  

* Cost controls that more closely align revenues with expenditures for all operations.  Company anticipates the quarterly narrowing of operational losses in Q3 and Q4 from Q1 and Q2 levels. We saw a normalized market value of $25M consistent for over one year in 2009-2010 for our Company when we were much smaller. We have been active in the acquisition market now for several years, and we can tell you that

• A large competitor with worse financials but strong market valuation realized 5x revenues for their company when they exited the market.
• Even in distressed situations, companies can receive a minimum of $300 per contract which would put our value at a very minimum over $9M.  Again, this is no goodwill or additional component valued for organic growth.

To put it another way, our fundamentals are strong and this Company, truly, has never been in better financial shape.

A man I admire, Bill Polian, Vice Chairman of the Indianapolis Colts who has had tremendous success in the NFL for many decades, routinely says, and I'll paraphrase, that "the only thing the team is concerned with is the 53 men on the field and the employees in the building, getting them better, stronger and ready to play weekly.  If you focus on the fundamentals, everything else falls into place."  I feel the same way: focus on the people at our lab in Las Vegas, our lab in Argentina, our office in Germany, our investments in China and Spain.  Focus on our financials, our quality products, diversification of revenues, and healthy organic business. Focus on the fundamentals, and the rest will take care of itself.  

I'd like to reflect back for a moment on why we started this Company.  What we market is similar to an insurance policy, conveying a strong peace of mind.  We believed then, and we believe even more today, that stem cells will play a key role in launching a new era of medicine, an era in which we are finally successful against some of the most intractable diseases mankind faces.  Cryogenically preserved umbilical cord blood stem cells have already been used to successfully treat 75 major diseases, including leukemia, severe anemia, metabolic blood disorders and immune deficiencies.  What is so amazing is that in laboratories across our globe stem cells are being studied for use against stroke, spinal cord injuries, heart disease, Parkinson's disease, multiple sclerosis, diabetes and almost any disease you can name which now cannot be cured.  One breakthrough in one of these laboratories is going to make stem cells one of the hottest sectors in the entire market, of that I am convinced.  Researchers dream that the cells they remove from umbilical cord blood can someday be turned into any single tissue in the body, allowing for the repair of a damaged heart or a brain ravaged by a stroke.

Has this been a difficult period?  Yes.  Every company that grew from an idea at the kitchen table to a power in its sector has had difficult periods.  But I want to make this promise clear to our shareholders:  We will not quit.  We will work every day to improve the quality of the Company, confident that someday this will be recognized by the marketplace.  For those of you who have stuck with us for years, our heartfelt thanks. We recognize many of you have followed our news and are looking for more.  During the time of undervaluation, our focus is fundamentals.  The news will come, it always has.  Better to be opportunistic than to force action.  Please know the sweat equity we pour into this company every day to someday realize the true valuation of our growing business.  

Sincerely,

Matthew L. Schissler

Chairman, Co-Founder and CEO

Forward-Looking Statements

Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect,'' "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry, new stem cell treatments, and the Cord Blood America's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.

About Cord Blood America

Cord Blood America (OTC Bulletin Board: CBAI) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. To find out more about Cord Blood America, Inc., visit our website at http://www.corcell.com/. For investor information, visit http://www.cordblood-america.com/.

CONTACT:

Paul Knopick
E & E Communications
949/707-5365
[email protected]

SOURCE Cord Blood America, Inc.