Human BioSystems
OTC Bulletin Board : HBSC

Human BioSystems

March 22, 2006 16:08 ET

Breaking News: Human BioSystems Closes Financing Deal for $3.3 Million

PALO ALTA, CALIFORNIA--(CCNMatthews - March 22, 2006) - Human BioSystems (OTCBB:HBSC), developer of preservation platforms for organs and other biomaterials, announces today that it recently closed a financing arrangement with La Jolla Cove Investors, Inc. for $3.3 million.

"This agreement calls for La Jolla Cove to invest a total of up to $3.3 million under a convertible debenture and warrant structure commencing immediately with some initial funds at close, then the balance over a twenty month period from the time the shares being registered for this purpose are deemed effective by the Securities and Exchange Commission (SEC)," according to Harry Masuda, CEO of Human BioSystems.

"This financing structure should provide us with a steady stream of working capital over the near term to continue our human infusion studies for platelet preservation and our freezing technology for organ preservation," continued Mr. Masuda.

This release does not constitute an offer to sell the common stock referenced herein.

HBS is headquartered in Palo Alto, California with research facilities in Michigan.

Certain statements contained herein are "forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, results from ongoing research and development as well as clinical studies, failure to obtain regulatory approval for the Company's products, if required, failure to develop a product based on the Company's technology, failure of any such products to compete effectively with existing products, the inability to find a strategic partner or to consummate a relationship with a potential strategic partner on acceptable terms, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.

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