Angstrom Medica Background
Angstrom was founded in June, 2001 by Dr. Edward Ahn and two fellow classmates from the Massachusetts Institute of Technology ("MIT") in Cambridge, Massachusetts. Angstrom's fundamental technology was based upon the thesis research conducted by Dr. Ahn, entitled, "Nanostructured Apatites as Orthopedic Biomaterials," conducted at the Nanomaterials Research Laboratory in the Department of Chemical Engineering at MIT. In 2001, Dr. Ahn went on to win the Grand Prize from MIT's 2001 $50k Business Plan Competition that provided the initial momentum and seed money to found the company.

The organizers of the $50k Competition provided industry and business mentors to each of the competing teams, and it was at this time that Angstrom was introduced to the principals of Seedling Enterprises, L.L.C. ("Seedling")-John Cvinar, Andy Levine and Josh Tolkoff. Seedling provided critical input during the formation of the original business concept.

Based upon the strength and history of this relationship, Seedling provided the initial Series A investment to Angstrom in May 2002. While closing this investment, Angstrom obtained an exclusive license for the '591 patent on the nanostructured apatite technology from MIT. Additionally, given the lack of business experience on the part of Angstrom's founders, Mr. Cvinar agreed to assume the responsibilities of CEO and Series A Director. http://patft.uspto.gov

Mr. Cvinar's primary goal was to increase the value and decrease risk in Angstrom by "proving out" the technology so as to warrant the next stage of investment. Based on limited capitalization, Mr. Cvinar and Dr. Ahn decided to invest in further development of the technology by undertaking more extensive in vitro testing and pilot animal studies. In conjunction with the close of a Series B financing in August 2004, Mr. Cvinar stepped down as CEO to make way for Paul Mraz-a medical device executive with over fifteen years of experience in the medical device industry. Mr. Cvinar continued to represent the Series A investors on the Board. Proceeds from the Series B financing were used to (1) complete product development; (2) scale-up manufacturing; and (3) initiate clinical trials for FDA approvals and CE marking. Mr. Mraz resigned as CEO in Ootober, 2006 and Mr. Cvinar was requested by the Board of Directors to resume an active role with the Company. Additional financing was secured to continue operations and an offer to purchase the company was received from Pioneer Surgical that was completed in October, 2007.

Technology
Angstrom has developed a new process for forming synthetic bone-based orthopedic implants utilizing nanotechnology. Employing a patented precipitation process for forming nanostructured calcium phosphates, Angstrom Medica can control crystal size and morphology of calcium phosphates (i.e., hydroxyapatite or tricalcium phosphate) to more closely match those found in human bone.. The calcium phosphate nanocrystals possess enhanced "bioactivity" by mimicking the size and morphology of native bone crystals.

The details of the process used to create NanOssTM are currently a trade secret. The result, however, is a precipitate of calcium phosphate nanocrystals with a predetermined size, shape and composition. These nanocrystals can be consolidated into fully dense, nanocrystalline, transparent monoliths that are used to form complex shapes commonly used in orthopedic surgery (e.g., screws, pins and interbody fusion devices for spinal surgery). By retaining nanocrystallinity and morphology, these forged devices are capable of delivering mechanical strength without compromising the reactive surfaces that stimulate bone cell attachment and proliferation. While previous researchers have been able to demonstrate that calcium phosphate nanocrystals can be densified into small, fully dense, nanocrystalline transparent parts, they have limited clinical utility because of size limitations. Fortunately, Angstrom has overcome this pitfall with a process that retains the material's biomimetic nanocrystallinity and morphology in sufficient quantities so as to make it a serious clinical alternative to traditional metallic and polymeric implants.

The benefits of Angstrom's NanOssTM calcium phosphate nanotechnology include: (1) the manufacturability of implant geometries suitable for orthopedic applications; (2) the production of a nanocrystalline calcium phosphate biomaterial with load-bearing properties; and (3) the resultant materials' enhanced bioactivity. This final benefit arises because the nanocrystals are small enough to allow the body's living cells to grow between and latch onto the nanocrystals. These cells are then able to engulf the crystals, break them down and remodel them into real bone. Over time, therefore, implants made of NanOssTM should be incorporated seamlessly into the once-damaged tissue and become indistinguishable from normal, living bone. Further details concerning Angstrom Medica's start-up can be found at: http://www.angstrommedica.com

Sale of the Company to Pioneer Surgical
Pioneer Surgical Technology announced its acquisition of Angstrom Medica, Inc., in October, 2007. Acknowledging that Angstrom is the first company to obtain Food and Drug Administration approval for a nanotechnology device, Pioneer will continue pursuit of NanOss™.chemistries in various trauma, orthopedic and spine surgery applications. Terms of the acquisition were not disclosed. Angstrom Medica, Inc. becomes a wholly-owned subsidiary of Pioneer Surgical and is part of its orthobiologics division. Dr Edward Ahn and the Angstrom Medica team will continue operations at their Woburn, MA location.