SOURCE: Tulip BioMed, Inc.

September 12, 2007 19:47 ET

Tulip BioMed, Inc. Announces Recapitalization and Debt Reorganization Plan

SAN DIEGO, CA--(Marketwire - September 12, 2007) - Tulip BioMed™, Inc. (PINKSHEETS: TPBD), a developer of medical devices and patented technologies for the living tissues market, including plastic, cosmetic, and orthopedic surgeries, today announced that it has initiated a recapitalization of is equity and reorganization of certain debt instruments.

The Tulip BioMed Reorganization and Capitalization Plan (the "Plan") includes the cancellation of 26.4 million shares of the Company's common and preferred stock, and a shareholder-approved, Board of Directors authorized 10 for 1 reverse stock split of the Company's equity. Following these actions, the Company will have approximately 8 million shares issued and outstanding. On a fully-diluted basis, the Company will have approximately 11.5 million shares of common stock issued, which includes common stock of 7.6 million shares, preferred stock of 0.4 million shares, common stock underlying 2.7 million warrants, and common stock underlying 0.8 million stock options. The average price of the warrants, on a post reverse-split price basis, will be $1.20 per warrant (each warrant can be exercised for one share of common stock) with an average term of about 3.25 years. None of the stock options, which were issued to employees, directors and key advisors to the Company, have yet vested.

In addition, under the Plan, the Company has reached an agreement with its manufacturing partner regarding approximately 15,000 disposable micro-cannula products which it recently received in its San Diego warehouse, for payment based on a combination of the Company's common stock (included in the foregoing) and cash. The micro-cannula's are part of the Company's inventory and will be available for sale once final processing and packaging are completed.

Furthermore, under the Plan, the Company has or is in the process of canceling approximately $350,000 in debt; no assurances can be made as to whether or not the Company will be successful in this process with respect to some of this debt. The Company has also initiated a process whereby additional debt is being negotiated to be tendered in full satisfaction as equity; no assurances can be made as to whether or not the Company will be successful in this process.

Under the Plan, the Company and its financial advisors believe that the Company's capital structure is properly repositioned for moving forward with the financial markets and institutional investors.

About Tulip BioMed, Inc.

Tulip BioMed, Inc., a Nevada corporation, has its operations based in San Diego, California. Founded in 2004, Tulip BioMed, Inc. is a medical devices company that manufactures and distributes technologies for the living tissue markets, including plastic and cosmetic surgery, biopsy, and orthopedic surgery. Tulip BioMed, Inc. manufactures, markets, and distributes medical devices, to physicians, clinics, military, health organizations, hospitals and other distribution outlets. For more information, please visit our website at: Products are available for sale at

Safe Harbor: This press release contains certain forward-looking information about Tulip BioMed, Inc., which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tulip BioMed, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy. We are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission. We trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities. Readers are cautioned not to place undue reliance on these forward-looking statements. Tulip BioMed, Inc. does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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