CBAI to operate its own business strategies

Cord Blood America, Inc. (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, said today the focus of the Company on a go forward basis is to operate entirely off its own cash flow.  "Getting to cash flow positive is of critical importance for our business and to allow our shareholders to recognize the true value of the Company," said Matthew Schissler, co-founder and CEO.

"We have been aggressive in our strategies and we don't apologize for that.  Companies that have been passive have been left behind or have been acquired.  There is a tipping point to this business that requires mass.  We are on the cusp of achieving that and our plans over the next 12 months serve as our guide.

"To understand our future, it's important to see the progress of the previous two years. We are very proud of what we have accomplished," Mr. Schissler added.  Comments on specific initiatives are:  

*On the new CBAI laboratory -"We moved from being a reseller of another lab's services to building our own laboratory in Las Vegas, NV, and had its grand opening in January 2010, which was attended by over 200 people, including many of the state's public policy personnel. Subsequently from this, Mr. Schissler was named Chairman of Nevada Development Authority's Biotech committee.

*On organic growth – "Revenues were up 14 percent at the last 10Q filing.  Our partnerships with AHIP (America's Health Insurance Plans), NLO (National Labor Office), and other insurance partners are paying dividends, including adding new exclusive insurance partnerships.

*On acquisition strategy – "We acquired 51.0 percent of one of the largest cord blood banking services in Germany, with an outreach to all of Europe, 50.1 percent of a profitable Argentina stem cell collection company with affiliates throughout South America, and 100 percent of a well-known stem cell collection company in Chicago.

*On strategic global agreements – "We have become minority investors in one of the premier stem cell companies in Europe, headquartered in Madrid, Spain, and are involved in a partnership in China building a major storage laboratory there.

*On Revenue Diversification – "CBAI signed two agreements to provide placenta, whole cord and cord blood collection services for corporate customers which as of 3Q 2010 resulted in 5% of CBAI's revenue."

*On Debt Reduction– "CBAI has paid down over $10M in debt in last two years to help de-lever the balance sheet.  For the first time as reported in 10Q 2010, assets and liabilities were essentially even."

"As over the last few years of announcing our intentions, I believe it is vitally important to understand our strategies going forward. Specifically:

1. We have eliminated most of our debt over the last two years, a strategy that went hand in hand with increasing the market cap.  We will continue to eliminate the rest of the legacy debt.
2. CBAI will find more opportunities for revenue diversification.  We announced in 2010 and again in 2011 deals with major tissue banks to provide placenta, whole cord and cord blood collection services.  There are other services we are investigating, including DNA testing, and storing different forms of stem cells.
3. We continue discussions with insurance companies to become partners.  We have announced one partnership and anticipate more news in this sector.  Organic growth is critical and this laser focused sales effort offers the best return on investment we have seen in the industry to attract new customers.
4. Finally, Cord Blood America will continue to negotiate acquisitions that will significantly add strong recurring revenues that benefit our efforts without increasing operational expenses."

"Cord Blood America is very proud of what we have accomplished and we are asking our shareholders to continue their support of management as we move forward to our goals of continued organic growth, smart acquisitions, revenue diversification, elimination of all debt, strategic investments and, most importantly, becoming cash flow positive," said Mr. Schissler