Trading Statement

Collagen Solutions Plc

(the "Company" or the "Group")

Trading Update

Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen-based biomaterials for use in research, diagnostics, medical devices, and regenerative medicine, announces that trading in the six months to 30 September 2016 of the current financial year was in line with management expectations.

Revenue and other income is expected to be £1.90m, which represents a 30% increase compared to revenue of £1.46m for the same period last year.

Operationally this period has seen the benefits of the new strategy that has been implemented following the appointment of Jamal Rushdy as CEO in May of this year, including specific strategic initiatives focused on building core business scalability and advancing the R&D pipeline.

Regarding the progress of these initiatives, Jamal Rushdy commented: "We completed hiring and training the additional direct sales channel personnel, in line with our strategy, with commercial managers now based in the USA, Korea, and UK, resulting in a more active pipeline of business within North America, Asia Pacific, and EMEA respectively. In addition, our OEM process improvements have been implemented, resulting in improved customer bid throughput. Finally, we have made progress on multiple fronts within R&D including a recently announced grant opportunity with Horizon 2020; initiation of additional internal projects focused on bone and wound healing; and advancement of our ChondroMimetic programme, focused on re-establishing the CE mark and initiating a 6+ year post-marketing surveillance study, which will build on the patients' data reported in the original six-month study."

About Collagen Solutions:

Collagen Solutions Plc is a global provider of medical grade collagen formulations and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The capabilities of the Company include the provision of native, soluble and powdered collagen formulations, processed and semi-processed tissues such as pericardium, bone, and blood vessels, and expertise in the development and contract manufacture of collagen components for use as engineered tissue scaffolds and other medical devices. These products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology. Collagen Solutions' unique offering extends beyond material supply and contract services through the highly skilled staff who support customers through the various stages of development and regulatory approval. For additional information, please visit www.collagensolutions.com.

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