ReGen Biologics, Inc.Health Tech Net

November 15, 2002

Presented by: Gerald E. Bisbee, Jr., Ph.D. Chairman, President and CEO

Brion Umidi, SVP and CFO

Cautionary Note on Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the managements of Aros and ReGen and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including those discussed in the Risk Factors section of Aros' current report on Form 8-K/A, filed with the Securities and Exchange Commission on September 4, 2002. Aros' filings with the SEC are available to the public from commercial document-retrieval services and at the Web site maintained by the SEC at http://www.sec.gov.

Today’s Agenda

• The Orthopedic Marketplace– Hips, knees, spine, sports medicine and more

• ReGen Biologics – The CMI

– The marketplace

– The Company

The Orthopedic Marketplace

Not Just Hips and Knees

• Orthopedics - medical devices addressing joint deterioration, trauma, arthritis, spinal problems and related pain/ mobility issues.

• $12.4 billion market expanded beyond traditional hip and knee replacements to new and developing areas.

• Segments include:– Reconstructive implants – Spine

– Sports medicine – Orthobiologics

– Trauma – Other

– Dental

Segment % of Market

Trauma15% Sports

Medicine12%

Reconstructive Implants

41%

Spine14%

Other10%

Dental6%

Orthobiologics2%

Market Segments - Breakdown

Segment Growth Rates

Orthobiologics27%

Dental15%

Other8%

Trauma9%

Sports Medicine

10%

Reconstructive Implants

8%

Spine23%

Market Segments - Growth

Trends and Innovations

• Key areas of current and future development: – Spinal disc repair and replacement;

– Minimally invasive surgical techniques; and

– Tissue regeneration.

Innovations in the Spine

• Achieve more normal anatomic function, which is lacking in traditional spinal fusion and cage applications.

• Developments are focused primarily on:– Artificial discs and disc repair procedures;

– Using an array of materials and approaches;

– Designs that absorb shock and restore more normal anatomic function.

Minimally Invasive Surgical Technologies

• Minimally invasive hip and knee replacements, requiring less surgical impact and quicker recovery.

• Instrumentation devices in the spinal and orthobiologics areas.

• Nerve guidance systems to more effectively navigate around nerves during surgery.

Tissue Regeneration

• Currently small, but rapidly growing segment, including:– Soft tissue regeneration, such as implants and procedures in

the articular cartilage and meniscus of the knee;

– Growth factors and gene therapy; and

– Bioresorbable fixation devices.

Orthopedic Valuations

• Public company valuations reflect large market with reliable earnings/cash flow, and promising high growth segments.

• Revenue growth of 9% - 13% in 2002.

• Earnings per share growth of 15% - 20%.

• Pricing multiples of 2x forward EPS growth rates.

• Public company pricing multiples of 30x - 40x forward EPS.

ReGen Biologics, Inc.

ReGen Biologics Overview

• ReGen is in the biological remodeling business

– Designs and manufactures proprietary biologically active type I collagen scaffold and delivery devices

– Strong intellectual property position

• Current application is orthopedics – Collagen Meniscus Implant (CMI) is first product

• R&D

– Each product engineered with unique mechanical properties

– Additional orthopedic applications in articular cartilage, spine, ligament, and hand

Scaffold Promotes In-situ Regrowth

• Core technology: Porous Type I bovine collagen scaffold

• Pore size optimized for cellular infiltration and growth

• Promotes in-situ use of patient’s own cells to populate and seed the regrowth

Management

Gerald E. Bisbee, Jr., Ph.D. • Chairman and CEO; CEO Apache Medical & Sequel Corporation;

Director Healthcare Group, Kidder Peabody; Ph.D., Yale; M.B.A., Wharton

John Dichiara • SVP, Clinical and Regulatory Affairs; 15 years of experience at

Howmedica; B.A., Biological Science, Columbia College

William G. Rodkey, DVM • VP, Scientific Affairs; internationally known knee researcher; DVM,

Purdue; board certified

Brion D. Umidi • SVP and CFO; 16 years of experience assisting corporations with

various corporate, financial, development and operational matters; B.A., Accounting and Finance, Loyola College

Board of Directors

• Gerald E. Bisbee, Jr., Ph.D., Chairman, President and CEO, ReGen Biologics

• J. Richard Steadman, Steadman Hawkins Clinic; U.S. Ski Team Hall of Fame; highly published; B.S., Texas A&M; M.D., U. of Texas Southwestern Medical School

• Robert McNeil, Ph.D., General Partner, Sanderling; active and experienced investor and board member; Ph.D., U.C. Irvine

• Richard Fritschi, President, Centerpulse Orthopedic Division; former Sulzer Medica CFO; General Manager, Joint & Traumatology,

• Alan W. Baldwin, CEO, Alcore, Inc.; experienced manager, director and investor; B.S., U.S. Military Academy; M.A., University of Alabama

ReGen Highlights-to-date

• Intellectual Property

– 22 U.S., 29 international & 12 pending patents on products materials and processes

• U.S. Clinical Trial– U.S. Clinical Trial - 288 enrollment complete; surgeries in Q402

– Feasibility study five year results submitted for publication

• R&D– Initial product developed, active R&D pipeline

• Products – Products approved and sales underway

Product Sales Underway

• Product Approvals– CMI approved for sale in Europe and Australia; ex-U.S.

distribution agreement with Centerpulse (NYSE: CEP)

– SharpShooter OK for sale in U.S., Canada, Europe, Australia, and Japan; Linvatec WW agreement (NASDAQ: CNMD)

– Marketing to begin in Chile Q402, distribution through Centerpulse

• Canadian approval underway Q402, distribution through Centerpulse

The First Application -- CMI

• The market: 775,000 U.S. partial meniscectomies in 2002; ROW = 310,000

• Unmet need: – Surgeons and patients have no current option to regrow

meniscus tissue

– Result is to prevent or delay long term degenerative arthritis which can cause:

» Changed or lost lifestyle

» Interrupted or lost employment

Remodeling is Successful Over Time

38%62%

Gain: double amount of tissue

75%

Remaining MeniscusRemoved

meniscus

Post Partial Meniscectomy

Post CMI (1 & 5 years)

100% Tissue Regeneration

Surgery

One Year Post Surgery

Before

The Patient Clinical Benefit

2.5

3

3.5

4

4.5

5

5.5

6

6.5

7

7.5

Before Injury Before Index

Surgery

12 Months 24 Months 36 Months 48 Months 5+ years

MCT CMI

MCT Control

30% increase from

Control to CMI groups

Tegner Activity Level

The Patient Clinical Benefit

Tegner Activity Level

2.5

3

3.5

4

4.5

5

5.5

6

6.5

7

7.5

Before Injury Before Index

Surgery

12 Months 24 Months 36 Months 48 Months 5+ years

MCT CMI

FeasibilityPatients

MCT Control

U.S. Multicenter Clinical Trial Results

• Prior surgery patients double amount of tissue

• CMI patients achieve a significantly higher activity level at two years than controls

– Activity levels for feasibility study patients have steadily grown

• Safety (adverse events) – no apparent safety issues

• Histology – no immune reactions or infections

• Ratio of pain, function, and self assessment per unit of activity higher for CMI patients

Disease Progression - 775,000 P.M. in 2002

$9,500+

$9,500

MeniscusTear

Preserve Meniscus

RegenerateMeniscus

CMICollagen Meniscus

Implant

Remove Meniscus

RepairMeniscus

MeniscusRepair

Partial Meniscectomy

Cost:$16,000

Cost: up to

$49,500+

Cost: $12,500

Add’l Surgeries

Allograft

Joint Replacement

$15,000

$40,000

Meniscal Repair – 140,000 in 2002

$9,500+

$9,500

MeniscusTear

Preserve Meniscus

RegenerateMeniscus

CMICollagen Meniscus

Implant

Remove Meniscus

RepairMeniscus

MeniscusRepair

Partial Meniscectomy

Cost:$16,000

Cost: up to

$49,500+

Cost: $12,500

Add’l Surgeries

Allograft

Joint Replacement

$15,000

$40,000

CMI – Clinical and Financial Benefits

$9,500+

$9,500

MeniscusTear

Preserve Meniscus

RegenerateMeniscus

CMICollagen Meniscus

Implant

Remove Meniscus

RepairMeniscus

MeniscusRepair

Partial Meniscectomy

Cost:$16,000

Cost: up to

$49,500+

Cost: $12,500

Add’l Surgeries

Allograft

Joint Replacement

$15,000

$40,000

CMI Advantage – Affects Lifestyle and Costs

$9,500+

$9,500

MeniscusTear

Preserve Meniscus

RegenerateMeniscus

CMICollagen Meniscus

Implant

Remove Meniscus

RepairMeniscus

MeniscusRepair

Partial Meniscectomy

Cost:$16,000

Cost: up to

$49,500+

Cost: $12,500

Add’l Surgeries

Allograft

Joint Replacement

$15,000

$40,000

CMI Market Penetration Comparables

• Spinal fusion cage = 35% in five years

• Radiofrequency (RF) Ablation = 40% in five years

• Meniscal Repair Arrow = 50% in five years

• CMI = estimated 31% market penetration in five years post approval

CMI Projected $500 Million Market

0

100,000

200,000

300,000

400,000

500,000

600,000

2006 2007 2008 2009 2010

YEARS

PR

OC

ED

UR

ES

(un

its)

0

100

200

300

400

500

600

SA

LE

S P

OT

EN

TIA

L

($ m

illio

ns) CMI Eligible Market

(units)

CMI Sales (units)

CMI Sales Potential($ mil.)

Surgeon and Patient Incentives Match

• Surgeon’s View

– Quality of life: happy patient attracts more patients

– Meniscus --“the more the merrier”

– CMI delays or prevents osteoarthritis

– CMI adds important treatment option

» Expand revenue source

– New “standard of care” requires surgeon to perform procedure

Surgeon and Patient Incentives Match

• Surgeon’s View

– Quality of life: happy patients lead to referrals

– Literature shows that in terms of the meniscus --“the more the merrier”

– CMI delays or prevents osteoarthritis

– CMI adds important treatment option

» Expand revenue source

– New “standard of care” requires surgeon to perform procedure

• Patient’s View

– Quality of life: increased activity is key

– Internet search shows that in terms of meniscus, “the more the merrier,”

– CMI delays or prevents osteoarthritis

– New treatment option demanded

» Decreases total costs

– New “standard of care” demanded by patients and defined in literature

Reimbursement Follows Clinical Benefit

• Tissue regrowth and activity levels show positive results in the 12-18 month timeframe desired by managed care companies

• Patients and surgeons will define CMI as new “standard of care”

• CMI procedure ($16,000) is attractive alternative to very expensive joint replacement procedure ($40,000+)

• Reimbursement in U.S. will include the following steps:– Obtain CPT code– Develop economic model – Establish Relative Value Units (RVU)– Present economic model and clinical benefits to major

insurance and managed care companies

The SharpShooter® Application

PICTURE

Selected ReGen Milestones Through 2004

• Product Sales– Annual sales goals established - Distribution agreements

accelerating sales, for both CMI and SharpShooter • FDA Submissions

– CMI U.S. submission planned in Q404, when two year follow-up for all patients is complete

– U.S. Feasibility study on Grade IV patients in Q103– Two 510k applications

• R&D– One significant product development partnership – Four additional patents

• Financings– One round of financing in next 12 months

Research & Development Pipeline

Approved for sale in Europe and Australia.

Clinical trial enrollment currently complete

Prototype developed; cadaver testing initiated

Patents issued; large animal model testing complete

Patent issued; primate testing complete; 510(k) submission expected

Prototype development; large animal model testing initiated

Prototype developed; animal studies initiated

Patent filed; lab testing

Prototype development

Patents issued; prototype development

ResearchIn-VitroTesting

Pre-Clinical Clinical Market Comments

Medial Meniscus Implant:

Europe & Australia

U.S.

Lateral Meniscus Implant

Intervertebral Disc Repair

Hand Bone Augmentation Device

Ligament Augmentation Devices

CMI + Growth Factors

CMI Improvements

Rotator Cuff Repair Device

Articular Cartilage Repair

September 2002

Recent Financing Transactions

Multi-Stage Financing Completed June 21, 2002:

• Private Placement of $4 million into ReGen Biologics, Inc., in addition to conversion of approximately $2.6 million bridge financing provided by Sanderling companies and other existing ReGen shareholders

• Merger with Aros Corporation, resulted in net liquid assets of approximately $3 million, and instant public company status

• Shareholders of ReGen own approximately 80% of post merged company

Key Scientific Advisors

• Kenneth E. DeHaven, M.D., Professor, Department of Orthopedics, University of Rochester

• Charles P. Ho, M.D., Director, National Orthopedic Imaging Associates

• Steven Arnoczky, D.V.M., Endowed Professor of Orthopedic Surgery, Michigan State Veterinary School

• Mininder S. Kocher, M.D., Instructor of Orthopedic Surgery, Harvard Medical School

• Paolo Bulgheroni, M.D., Clinical Professor, Institute of Orthopedics and Traumatology, Varese, Italy

• Juan Carlos Monllau, M.D., Clinical Professor, Orthopedic Surgery, Barcelona, Spain

• Shu-Tung Li, Ph.D., Founder and President, Collagen Matrix, Inc.

ReGen Biologics, Inc.

www.regenbio.com