TA Therapeutics, Ltd., a Hong Kong Company, a Majority-Owned Geron Subsidiary

Geron, in collaboration with the Biotechnology Research Institute (BRC), a company established by the Hong Kong University of Science and Technology (HKUST), began screening for telomerase activators in early 2000. The source of material for the screen was natural product extracts from traditional Chinese medicines. In the course of the screening, several extracts were discovered that reproducibly up-regulated the low, basal level of telomerase in human skin cells. With analysis of the extract and further testing, one compound in the extracts was identified as a key telomerase activator. It was capable of activating telomerase in other human cells types (e.g., lymphocyte immune cells) at very low concentrations. Another compound, a derivative of the first, was also present in the extract but at lower concentrations and was also found to possess similar telomerase activating properties. These molecules are currently under development for the treatment of degenerative diseases. Other small molecule activators discovered during the course of the research my also be developed for certain disease indications.

In March 2005, we and BRC established a joint venture company in Hong Kong called TA Therapeutics, Ltd., (TAT). TAT was established to conduct research on and commercially develop products that utilize telomerase activator drugs to restore the regenerative and functional capacity of cells in various organ systems that have been impacted by senescence, injury or chronic disease. Pursuant to the joint venture agreement with BRC, we provide scientific leadership, development expertise, intellectual property and capital to TAT. BRC provides scientific leadership, a research team, capital and laboratory facilities to TAT. We and BRC each initially owned 50% of TAT.

On June 15, 2007, we and BRC entered into an agreement to restructure the TAT joint venture. We acquired control of TAT's operations and assets. Under the amended agreements, we direct the preclinical and drug development activities, own 75% voting interest and have unilateral right to wind up TAT. Upon winding up of TAT, all intellectual property of TAT is assigned to us and BRC is entitled to royalties on sales of future products developed from TAT's efforts up to a fixed amount based on BRC's cash contributions.