Presentation to the Dow Jones Healthcare Ventures Conference

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• Presentation to the Dow Jones Healthcare Ventures
  Conference
• Redwood City, CA
• September 27, 2005

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Lower Success Rate of Initial Surgeries Resulting
in Second and Third Surgeries for the Same
Problem - Wide Variance Indicates Need for New
Orthopedic Solutionsto Augment Current Practices
or Introduce new Alternatives
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Whats Out there Today?

• Synthetic hardening agents, PMMA and polymers, as
  well as Ca-based bone fillers/cements do not meet
  this need
• Ideal Product would
• adhere bone-to-bone tendon and ligament-to-bone
• Be osteoconductive (Support bone formation) and
  potentially osteoinductive (bone creation)
• Serve as delivery device for osteoinductive
  substances
• Be biocompatible, bioabsorbable within bone
  healing time frame (months), have powerful
  mechanical properties

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The Bone Solutions Technology

• Patented, Magnesium-based injectable formulation
• Key Components
• MgO Magnesium Oxide
• MgKPO4 Magnesium Potassium Phosphate
• Small amounts TCP (Tricalcium Phosphate) and
  other ingredients
• Additional Filed Patents have added further
  adhesive qualities

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The BSI Product

• 100g powder 25g H2O
• Mix 1 min no special
• equipment, Injectable needle
• Sets 10-15 min adjustable
• Short Exothermic peak, Under 50 C
• Fibers, antibiotics, osteoinductive agents can be
  added to serve as an osteo-biologic delivery
  system

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BSIs Injectable Formulation Adheres Bone to Bone
and Tendon to Bone

• Biomechanical properties affirmed in canine model
  of anterior cruciate ligament repair and femur
  fracture.
• Table 1 ACL - Peak Tensile
  Load (N) to Failure

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Extraction Torque Test Proved Mechanical
Properties

• Mean extraction torque
• Control
• 67.75 /- 8.77 Nm
• Norian
• 61.35 /- 15.14 Nm
• Bone Solution
• 97.50 /- 17.77 Nm
• PMMA
• 71.80 /- 12.31 Nm

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Repeated Measures ANOVA

• Control vs Norian P 0.05
• Control vs Bone Solution P
• Control vs PMMA P 0.05
• Norian vs Bone Solution P
• Norian vs PMMA P
• Bone Solution vs PMMA P

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Biocompatibility/Proliferative

• Metatarsal Fracture Model using 8 Horses just
  concluded showing that BSIs product was
  clinically biocompatible, clinically
  non-inflammatory
• In this study, BSIs product showed formation of
  bone or bone proliferation compared to a Ca based
  product or nothing.

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Initial Indications of Proliferation

• Indications of bone formation, bone remodelling,
  and bone healing occurred through four weeks, and
  persisted through seven weeks for the BSI treated
  injury versus the Ca product or nothing.
  

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Flexibility for the Orthopedic Surgeon

• Set Time for any Surgical Use with BSIs product
  can be pre-determined in each case by the
  orthopedic surgeon
• Use of a CO 2 laser allows total control by the
  surgeon, another unique feature of the BSI product

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Next Steps for BSI

• Accelerate completion of FDA 510(k) approval in
  sequence as a bone void filler/cement/anchor
  filler expected 2Q 2006
• Launch veterinary market sales to start initial
  revenue by December 2005

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BSI Team

• John Albers, Chairman, Head of Fairfield
  Enterprises, Pharmaceutical Technologies
  Developer
• Tony Copp, CEO, 30 Years experience in
  Finance/EAC Ltd, focused on new technologies
• Tom Lally, President, Inventor
• Jim McNamara, IBM Finance/Marketing executive
• Drew Diaz, Medical Device International Sales
  Executive
• W.B. Hamption, Medical Device, National Sales
  Executive

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Technical Advisory Board

• Dr. Scott Rodeo, Orthopedics Hospital for Special
  Surgery, NY
• Dr. Joseph Iannotti, Head, Orthopedics
  Department, Cleveland Clinic, Cleveland, OH
• Dr. Jim Montgomery, Head Orthopedic Specialists,
  Dallas, TX
• Dr. Tarek Souryal, Head, Sports Medicine Clinic
  of Dallas
• Dr. Adam Starr, Southwestern Medical Center,
  Dallas
• Dr. Richard Steadman, Steadman-Hawkins Clinic
  (pending)
• Dr. Michael A. Pikos, MAP Implant Institute, Palm
  Harbor, FLA. (pending)

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Current Strategy and Funding Needs

• BSI, www.bonesolutionsinc.com, is now completing
  its round of 1.2 MM, and has a remaining need
  for 600,000 at 0.12 per share. An Offering
  Memorandum is available. Future fundings are
  expected. Current investors are Management and
  Angels
• Use of Funds goes into the science and completion
  of FDA 510 (k)s
• Discussions with potential distributors and
  manufacturers of our initial vet sales
  packages/human sales work underway as well