AdvanSource Announces Multi-Year Supply Agreement with International Manufacturer of Orthopedic Devices

WILMINGTON, Mass.--(BUSINESS WIRE)--AdvanSource Biomaterials Corporation (NYSE Amex: ASB), a leading developer of advanced polymer materials for a broad range of medical devices, today announced the Company has entered into a multi-year supply agreement with a leading international manufacturer of orthopedic devices.

The agreement is based upon the development and subsequent supply of a specialized aromatic polycarbonate-based material specifically targeted for applications in the orthopedic medical device market. The successful development of the specified polymer has resulted in execution of this multi-year agreement which provides for an annual usage fee per end-product incorporation and commercialization.

Khristine Carroll, AdvanSource’s Vice President of Sales and Marketing, stated, “We are very pleased at the partnership which has evolved with this customer and the commitment a long term agreement such as this demonstrates. Having the opportunity to exhibit and provide our custom synthesis capabilities to a leading innovator in the orthopedic market represents a broader entrée into the orthopedic arena, which we consider to be an important vertical market within our growth strategy. This relationship further supports what we believe to be the ongoing success of our revitalized business strategy to leverage the Company’s biomaterials technology and capabilities in partnership with developers and manufacturers of medical devices.”

About AdvanSource Biomaterials Corporation

AdvanSource Biomaterials Corporation manufactures advanced polymer materials which provide critical characteristics in the design and development of medical devices. The Company’s biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. AdvanSource’s business model leverages its proprietary materials science technology and manufacturing expertise in order to expand its product sales and royalty and license fee income. More information about AdvanSource is available at its website: www.advbiomaterials.com.

Forward-Looking Statements

AdvanSource believes that this press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause results to differ materially from the forward-looking statements. For further information on such risks and uncertainties, you are encouraged to review AdvanSource’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2009 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009. AdvanSource assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.