SOURCE: CryoPort, Inc.

November 15, 2006 11:40 ET

CryoPort Issues Letter to Shareholders

BREA, CA -- (MARKET WIRE) -- November 15, 2006 -- CryoPort, Inc. (PINKSHEETS: CYRX) released a letter to shareholders today.

To CryoPort Investors:

I would like to take this opportunity to communicate with shareholders the current status of business at CryoPort and discuss our plans going forward.

Since becoming a public company in March of 2005, the Company has worked diligently to become a reporting company with the Securities and Exchange Commission. Earlier this year we became fully reporting and remain compliant in our reporting requirements. For those that are interested, our financial results are readily available at most financial web portals that provide financial data, or at the following: CryoPort SEC Filings.

Over the past two years, the development of our one-way shipper has progressed to a point where the product is ready to launch on a large-scale basis. Originally, the shipper was designed to meet the specifications of a new cancer vaccine being developed by a biotechnology firm. The manufacturer had hoped to begin shipments of the drug during the spring of 2006. As the vaccine required cryogenic shipping, CryoPort was prepared to fulfill their low-temperature, small-dose shipping requirements. However, in the fall of 2005, after results came back from clinical trials that indicated success levels of the vaccine were less effective than originally expected, the development of the vaccine was discontinued. This abrupt halt to a leading vaccine program significantly impacted our time frame for beginning major manufacturing.

We are currently working with select customers and potential customers to act as early-stage evaluators for the CryoPort Express One Way Shipper. As we continue to develop these relationships, we are confident that our product line will offer a viable solution to the industries need for a small-dose, low-temperature shipping system. As a case in point, we have contacted several biotechnology companies growing cells for worldwide distribution. These companies believe that the one-way shipper provides an opportunity to both reduce the risk and overall costs of managing their biomaterial supply chain. We will keep you abreast of developments in this area as trials progress.

In addition, to enhance the application flexibility of CryoPort Express in both biotechnology research and drug delivery, we are in final design review for multiple sizes and configurations of the one-way shippers. We will be discussing the shipper options in a more public forum as they are introduced.

In order to successfully transition from a "pre-revenue" company focused on research and development into a fully functioning, large-scale, manufacturing and sales organization, we realize that we will have to maintain adequate funding levels to secure contracts with premier pharmaceutical firms and biotechnology companies. Over the past year, our management team has been heavily involved with putting growth capital into place at CryoPort. We are working diligently to obtain the necessary financial resources for the Company so that when the opportunity for a large-scale manufacturing relationship presents itself, we will be in a financial position to act decisively.

We continue to work diligently to move our Company to a more transparent trading platform. During the first 2 quarters of 2006 we worked with an NASD Broker/Dealer that was assisting in our efforts to have a current 15c2-11 on file with the NASD. Although this Broker/Dealer with whom we were working decided to no longer provide this service, we are working diligently to finish this process with the NASD. As we are now fully reporting to the SEC, we have received a positive reception thus far.

Depending on financial conditions and our meeting the criteria of the relevant senior exchanges, we are looking to move our company to possibly the AMEX or NASDAQ Capital Markets at the earliest time possible.

We continue to strive to complete our business objectives. While the events of the past 12 months have certainly changed our timetable on our forecasts, they have not changed our long-term goals or our determination to achieve success. We continue to push forward each and every day to make our products a primary component of low-temperature delivery solutions for the future.


Peter Berry



This press release contains forward-looking statements. The words "estimate," "possible" and "seeking" and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

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