LOGO
N E W S R E L E A S E
For Immediate Release
Contact: HemaCare Corporation
JoAnn Mannise, Director of Investor Relations
877-310-0717
www.hemacare.com
RELEASE DATE: June 17, 2004
HEMACARE ANNOUNCES INVESTIGATIONAL SITE AGREEMENT WITH OTSUKA AMERICA
PHARMACEUTICAL AND TERMINATION OF DARTMOUTH BLOOD CENTER MANAGEMENT CONTRACT
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LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board: HEMA.OB)
announced today that Otsuka America Pharmaceutical, Inc. ("Otsuka") has
expanded its contract with HemaCare to perform all of the set-up,
verification and training services associated with Otsuka's clinical trials
of the Adacolumn(R) Apheresis System, an investigational device being studied
for the treatment of various autoimmune disorders. Otsuka currently has
several clinical trials underway and plans a substantial expansion of up to
45 investigational sites in the United States and Canada.
HemaCare is a major provider of therapeutic apheresis services in the
United States. HemaCare has expertise in apheresis technologies and has a
staff of trained clinicians familiar with the set-up and verification of new
apheresis applications. HemaCare also manages blood donor centers and
therapeutic apheresis programs throughout the United States.
In addition to the set-up and verification services for the Adacolumn
Apheresis System at each of the new investigational sites, HemaCare will
also provide the study investigators and nurses with training on the
Adacolumn System. Otsuka has also requested HemaCare's assistance in
establishing new investigational sites in locations currently served by
HemaCare's operations. Additionally, Otsuka has selected HemaCare to
perform Adacolumn Apheresis procedures, principally in HemaCare's main
apheresis markets, New York and Los Angeles, in support of the clinical
trial effort. The contract for these services runs through April of 2006
and has the potential to generate $800,000 of additional revenue for
HemaCare.
- more -
Commenting on the announcement, Judi Irving, President and Chief
Executive Officer of HemaCare Corporation, stated, "We are very pleased that
Otsuka has selected HemaCare to assist with this important clinical trial
effort. Otsuka is an excellent company and is well respected in the
healthcare industry. We are excited about the opportunity to assist in the
development of this technology."
HemaCare Corporation also announced today the termination of the blood
center management contract with Dartmouth-Hitchcock Medical Center as of
June 21, 2004. This contract generated $352,000 in revenue in the first
quarter of 2004, and $1,053,000 for all of 2003.
ABOUT HEMACARE CORPORATION
Founded in 1978, HemaCare is a national provider of blood products and
services, and is believed to be the only publicly traded company engaged in
the blood industry in the United States. HemaCare is licensed by the FDA
and accredited by the American Association of Blood Banks. The Company
focuses on providing cost effective, high quality solutions to the blood-
related needs of U.S. hospitals and others.
This press release contains "forward-looking statements" under the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995 (Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.) Statements
herein that are not historical facts are forward-looking statements
pursuant to the safe harbor provisions referenced above. You may also
identify forward-looking statements by use of the words
"anticipates," "expects," "intends," "plans" and variations and similar
expressions. Forward-looking statements are inherently subject to risks
and uncertainties some of which cannot be predicted or quantified. Such
risks and uncertainties include, without limitation, the potential revenues
realizable from the Company's expanded relationship with Otsuka, the Company's
need to successfully complete its operating plan to improve profits; the
potential loss of the Company's lines of credit; the potential inability of
the Company to meet future capital needs; increasing costs that the Company
may not be able to pass on to customers because the market price for blood
does not necessarily reflect the costs of collecting and processing it;
declining blood donations; the Company's dependence on reimbursement rates
of third party providers; its increasing reliance on outside laboratories;
limited access to insurance; the competitive advantage enjoyed by not-for-
profit companies; potential changes in the healthcare industry; future
technology for blood collection and blood replacement; the need to obtain
services of qualified medical professionals; the impact of heavy regulation
in the Company's industry; potential liability for undetected blood pathogens
and other product safety and liability concerns; environmental risks
associated with biohazardous substances; the threat of business interruption
due to terrorism and the security measures taken in response to terrorism;
the provisions of the Company's charter documents that might delay or prevent
an acquisition or sale of the Company; lack of liquidity and market risk
associated with OTC Bulletin Board stocks; volatility in our stock price;
potential dilution that could result from future sales of the Company's
common stock; and the other risks and uncertainties discussed from time
to time in the documents HemaCare files with the Securities and
Exchange Commission. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable,
it can give no assurance that such expectations will prove to have been
correct. Consequently, future events and actual results could differ
materially from those set forth in, contemplated by, or underlined in
the forward-looking statements contained herein. The Company undertakes
no obligation to update any of these forward-looking statements to
reflect actual results or events or circumstances after the date hereof.
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