Company debt reduced to $4.194 million in 2009; CEO says strategy for 2009 in place

Umbilical cord blood stem cell preservation company Cord Blood America Inc. (OTCBB: CBAI), on its path to being able to operate on its cash flow, recently reported it has reduced its secured debt by a total of $4.194 million in the first five months of 2009.

Two months ago, the company announced it had decreased its debt by $1.75 million this year. Cord Blood America founder and CEO Matthew Schissler, expressing pleasure on how the company is progressing, said decreasing debt would be one of their significant items to focus on in 2009. According to Schissler, eliminating debt makes our financial balance sheet stronger and makes Cord Blood America a better investment.

Since that time, it further reduced its secured debt by $1.627 million and eliminated liquidated damages totaling $817,000.

In a press release, Schissler said the latest announcement shows achievement in debt reduction, which he said is one of the three strong pillars needed to take the company to the next level – the other two are organic growth and acquisition.

Pushing organic growth forward, Schissler said the company’s deferred revenues for the first quarter were up 20 %. For acquisitions, Schissler said the company is in the process of building or buying a stem cell laboratory for increased acquisition capacity and higher gross margin.

Cord Blood America, through its subsidiaries, provides private cord blood stem cell preservation services to families in the United States. According to Research and Markets report, cord blood banking is increasingly being used to improve and save lives. Stem cells derived from umbilical blood have been used in more than 8,000 transplants worldwide to treat a wide range of blood diseases, genetic andmetabolic disorders, immunodeficiencies and various forms of cancer, the report said.

Meanwhile, stem cell research got back into the limelight as President Obama reversed the federal funding ban on the research. Cord Blood America can look forward to strategic growth as bullish signals dominate the biotech sector.

The company also engages in collecting, processing, and preserving peripheral blood and adipose tissue stem cells, which allows individuals to privately preserve their stem cells for potential future use in stem cell therapy.

Schissler said the company’s strategy for 2009 is in place and they stand by their ability to perform and to make all three pillars strong and sturdy.

About Cord Blood America

Cord Blood America (OTCBB: CBAI) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders.

To find out more about Cord Blood America, visit http://www.corcell.com. For investor information, visit http://www.cordblood-america.com.

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