SOURCE: CryoPort, Inc.

November 30, 2005 08:05 ET

CryoPort Second Quarter Letter to Shareholders

BREA, CA -- (MARKET WIRE) -- November 30, 2005 -- CryoPort, Inc. (OTC: CYRX) released its second quarter press release to shareholders today.

Dear shareholder,

On behalf of the board and management of CryoPort, I wanted to give you a short, interim update on our progress this year since the reverse merger occurred in March 2005 along with an outlook over the coming six months.

We have just recently filed our first quarter financials with the SEC and a copy of our year end audited and first quarter financials are available on the SEC website.

In late October 2005 we completed our initial financial audit for years 2003, 2004 and 2005 and the filing of our SEC form 10SB and are currently responding to SEC comments so as to complete the registration before the end of the year. Also, we are currently in the process of applying to a more senior stock exchange, which we hope to have completed in the next few weeks.

Our primary focus, however, over the past 6 months has been on the development of a one time use cryogenic shipper and in particular the development of a single dose drug delivery product. I am pleased to report that functional prototypes of this single dose shipper were produced in late May for subsequent market evaluation by one of our customers in June of this year.

As a result of this effort, we are now targeting to launch two sizes of a one time use shipper in early 2006. Both the product technology and the complementary service that we intend to introduce will be uniquely differentiated against any currently available dry ice or cryogenic shipper in cold chain distribution today. More importantly, however, these are the products that will serve as a platform over the next two years for CryoPort to enter the high volume biopharmaceutical markets that it has targeted and which represent the foundation of the longer term business plan.

In addition to the one time use product development effort, we have continued to improve our performance and development of cost savings in our current reusable cryogenic shipper and have experienced some limited sales in our existing, traditional markets. We have also been able to use our current reusable shipper to help validate our product technology for applications in the biopharmaceutical industry to help bring the one time use products to market much earlier than anticipated.

Over the next six months we are therefore planning to significantly ramp up our sales and marketing activities to promote these new products initially to a select number of biotechnology companies involved with live cell therapeutic medicines.

At the same time we are continuing the work to develop an alternate construction material for our products that will enable higher volume manufacturing methods, which will be necessary in order to sustain our growth into the future, two to three years ahead.

Additionally during the past five months we have developed and are executing an aggressive acquisition strategy to provide the company with access to immediate revenues over the next 12-18 months, as we ramp up to the high volume requirements of our biopharmaceutical customers with inherently longer term selling cycles. We have identified a select number of synergistic and strategic acquisitions that will also provide the company with a stronger platform for future growth. At the time of this update, I can report to you that we believe we are close to a Memorandum Of Understanding (MOU) stage with one of these targets and I will keep you updated as to the outcomes of this process.

Our discussions with strategic partners are also positively well advanced and ready to go when needed.

We recently made some changes to our board of directors and replaced two previous directors with an outside director as head of the audit committee and added a new secretary who is also our retained legal counsel. This was part of the effort, in anticipation of becoming an SEC reporting company, to comply with the requirements of the Sarbanes-Oxley Act.

We have also added a new Vice President of Sales and Marketing, Ken Carlson. Ken has over 20 years of sales, business development and marketing experience in the medical device and industrial equipment markets. He has specific experience developing the sales and marketing infrastructure necessary to support the growth of businesses involving unique, disruptive technologies and has already started to network CryoPort into the cold chain industry by attending trade shows and conferences to help raise our visibility.

There are still challenges ahead but we have made steady progress in executing our business plan so far this year.

We are currently raising capital, as well as seeking other sources of additional investment monies. In this regard we are discussing opportunities for future investment in CryoPort with private individuals, as well as institutional organizations that have shown an interest in the CryoPort story as a result of the activities of our investor relations platform, in addition to seeking to expand the revenues and earnings of the company via selective, strategic acquisitions.

In closing this brief update, I believe it is important to highlight how a confluence of our experience, our competencies and current market trends present a unique opportunity for the company:

--  Performance refinements in the reusable shipper have benefited the
    rapid development and response capabilities for the one way technology much
    sooner than expected.
--  In dialogues with biopharmaceutical companies we have validated
    substantial benefits for the one way concept and are not aware of any
    similar competitive efforts which will position us for first to market
--  The addition of synergistic technologies with vertical integration
    through acquisitions will provide the catalyst for more accelerated revenue
    development and manufacturing capabilities over the next two years.
--  With close to 400 cancer medicines currently in clinical development,
    we are uniquely positioned at the junction of new cold chain distribution
    requirements to enhance the development of living cell therapeutics.
Should you have any questions, please contact the Company at 714-256-6100 and I would be glad to assist in any way. Finally, I would like to thank each and everyone of our shareholders for their past support in building CryoPort through these developmental years and I look forward to sharing a mutually beneficial future with you.


Peter Berry

CEO, President

CryoPort Systems Inc.


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.

Contact Information