1. The PancreAssist System A Bioartificial Pancreas

2. Insulin-Glucose Relationship Normal vs. Diabetic Normal Glucose Insulin Diabetic Glucose Insulin Injection Insulin B L D S

3. Diabetes Irregular blood glucose level control leads to complications; insulin injections are currently only practical therapy Insulin therapy fails to achieve consistent blood glucose; reliance on patient self-monitoring limits effectiveness PancreAssist™ System designed to provide automatic, continuous blood glucose level control Unmet Medical Need Shortcomings of Current Therapy ArbiosSolution

4. PancreAssist SystemU.S. & Europe Market Potential No. of Patients Market Potential* 100% of “Brittle” Diabetics 40,000 $ 200 million 50% of All Type I Diabetics 700,000 $3,500 million 10% of All Type II Diabetics 1,400,000 $7,000 million * Assume one device/reseeding per patient, per year at $5,000 each

5. The PancreAssist System A Bioartificial Pancreas Objective To develop an implantable device containing pancreatic islets to improve blood glucose control in insulin-dependent diabetics

6. Bioartificial Pancreas Device Types I I I Blood G G I Artery Vein I I Perfusion Device Pancreatic Islets Membrane G = Glucose I = Insulin G G I I I I G G Tissue Diffusion Device

7. Insulin Pancreatic Islets Blood Blood Ultrafiltration Hollow Fiber Glucose in Antibodies out White Cells Insulin PancreAssist™ System Bioartificial Pancreas Semipermeable Membrane Coil Islet Seeding Ports Porcine Islets Device Housing PTFE Vascular Graft Device Schematic

8. Reseedable PancreAssist™ System

10. Non-transformed, Primary Cells

12. Rapid Insulin Release

13. Physiological Blood Glucose Feedback

15. ARTIFICIAL PANCREASCanine Islets in Diabetic Dog Pancreatectomy Device Implanted Single Gen. 8 / PS-10

16. ARTIFICIAL PANCREAS DEVICECanine Islets in Diabetic DogTwo Devices Implanted Pancreatectomy Devices Devices Implanted Removed PS-56

17. Device Implanted Device Explanted PancreAssist System Xenogeneic Bioartificial Pancreas Porcine Islets in Diabetic Dog