Trading update

21 July 2020

Collagen Solutions Plc

(the "Company")

Trading Update

New contract win enhances revenues

Collagen Solutions Plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces an update to its order book/contracted development revenues following the signing of a significant new contract.

The Company has performed well, and has recently finalised a number of contracts, including the Novabone supply agreement announced on 7 July and a new supply agreement with an existing client for a long-term supply with larger contracted volumes as at 15 July 2020. With the new contract in place, the Company now has orders or contracted development milestones for FY 2021, together with revenue already recognised through the first three months of the financial year, worth approximately £4.3m (representing 108% of the sales in the last financial year).

Jamal Rushdy, CEO of Collagen Solutions said: "We are delighted to have secured this new contract. In our trading update announced in June, we said our order book was at approximately £3.3m, which was 82% of FY 2020 revenue. This further strengthening of the order book now puts us in a strong position to deliver a successful financial year. We remain confident that we can generate value to shareholders over the medium term."

About Collagen Solutions:

Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, tissue engineering, and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic®. The Company's products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.

FORWARD LOOKING STATEMENTS

This announcement (including any information incorporated by reference in this announcement), contains certain statements that are or may be deemed to be forward looking statements. Such statements are prospective in nature. All statements other than historical statements of fact may be forward looking statements. Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects", "remain confident that" or "considers" or other similar words may be forward looking statements.

Forward looking statements are based on current expectations that involve or are subject to risks, changes in circumstance, assumptions and uncertainties. Important factors such as business or economic cycles, the measures introduced in response to the COVID-19 pandemic, the terms and conditions of the Company's financing arrangements, tax rates, or increased competition may cause the Company's actual financial results, performance or achievements to differ materially from any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. The information in this announcement is provided only as at the date of its release, and the Company disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.

A copy of this announcement will be available at https://ir.collagensolutions.com/content/news/ir_news. For the avoidance of doubt, the content of the website referred to above is not incorporated into and does not form part of this announcement.