Medgenics, Inc.

('Medgenics' or the 'Company')

8 February 2010

The Board of Medgenics announces that on 5 February 2010 it was informed that on that same date three of the Company's directors entered into an irrevocable agreement to purchase 192,591 common shares of US$ 0.0001 each ("Common Shares") in the Company at a price of 6.5 pence per Common Share. Joel Kanter and his related parties will acquire 48,148 Common Shares, Andrew Pearlman will acquire 48,148 Common Shares and Eugene Bauer will acquire 96,295 Common Shares for an aggregate consideration of £12,518.

The Company is currently in the midst of a fund raising round which it hopes to complete in the next few weeks. The Directors' purchase of Common Shares will be completed at the same time as the Company's current placing closes and their relevant shareholdings will be notified at such time.

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About Medgenics:

Medgenics is a clinical-stage biopharmaceutical company developing its unique tissue-based Biopump platform technology to provide sustained-action protein therapy for the treatment of a range of chronic diseases. The Company currently has three products in development based on this technology and addressing the indications of:

- Anemia - using EPODURE, a Biopump producing erythropoietin (EPO) 

- Hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a) 

- Hemophilia - using a Biopump to produce clotting Factor VIII 

The Company's Phase I/II clinical trial using EPODURE to treat anemia in patients with chronic kidney disease, has demonstrated proof of concept of the Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for six months or more, EPODURE Biopumps have already provided effective anemia treatment in most of these patients for 6-12 months, even at the low administered dose.

Medgenics intends to develop its innovative products and bring them to market via multiple strategic partnerships with major pharmaceutical and/or medical device companies. In addition to treatments for Anemia, Hepatitis-C, Hemophilia, Medgenics plans to develop and/or out-license a pipeline of future Biopump products targeting the large and rapidly growing global protein therapy market, which is forecast to reach US $87 billion by 2010. Other potential applications of Biopumps producing various proteins include multiple sclerosis, arthritis, pediatric growth hormone deficiency, obesity, and diabetes.