COS.L Regulatory News (COS)

Collagen Solutions Plc

(the "Company" or the "Group")

Joint Venture Agreement in China

Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announces that it has entered into a joint venture agreement with Cre8ive (CRE8IVE: China Resources & Investment Vehicle Limited "Cre8ive").

The Collagen Solutions Group provides collagen to a global customer base covering North America, Europe and Asia. In order to maximize the potential of our business and to open up the market in China, the Company has entered into an agreement to form a Joint Venture company, with offices and staff in Beijing. Cre8ive is a conglomerate, operating solely within the People's Republic of China, focusing on exclusive or high barrier to entry investment opportunities.

Collagen Solutions will provide the initial investment into the JV, in a controlled manner, whilst Cre8ive will provide the territory expertise, support services, administrative and regulatory support in Beijing. The initial holding of the joint venture company will be 60:40 in favour of Collagen Solutions.

Dr. Stewart White, Chief Executive Officer of Collagen Solutions plc said: "The purpose of the Joint Venture company will be to expedite the marketing and supply of our medical grade collagen materials and regenerative medicine products to customers within the People's Republic of China. It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices. We believe that we have found a trusted partner in Cre8ive and that the Company can benefit from their many years' experience in the territory. Our control of the JV significantly de-risks this investment, whilst opening the business to significant upside both in terms of the supply of raw materials, but also the ability to increase value added opportunities, in what is clearly a sizeable and growing healthcare market forecast to grow to US$2.5bn in wound care alone by 2020."

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ABOUT CRE8IVE:

Established in 2006 as a private investment holding company, Cre8ive focuses on exclusive or high-barrier-to-entry investment opportunities within the Peoples Republic of China.

Cre8ive has long term development plans, and already demonstrated success with their model through challenging political and macro economic times. Having developed foundations with a depth and breadth usually seen in larger conglomerates yet Cre8ive has crucially retained its ability to be flexible in approach.

Cre8ive has experience of structuring Exits from its investments in various sectors and will shortly be carrying out an IPO of its core technology business on China's Third Board know as NEEQ (a stock exchange similar to NASDAQ). The NOMAD being CITIC China Securities and Pre-IPO funder being China Construction Bank. The business develops and operates payment and merchant technology solutions and works directly with several central government bodies and SOEs, such as; the Ministry of Public Security, China Union Pay, CWLC, also providing white label services ultimately also for the benefit of Ministry of Finance and Ministry of Civil Affairs.

Cre8ive's strategy going forward is to focus on two dynamic, high growth sectors, each with a real estate back bone and technology overlap, those being; Big Data and Healthcare.

The group continues to strive for strong growth and value creation, thereby providing its domestic and foreign shareholders and stakeholders with excellent returns. Furthermore, the group aspires to positively impact economic development and benefit the communities in the regions of their investments.