ILE Isolagen

RADNOR, Pa., Sept. 6 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Texas on behalf of all securities purchasers of Isolagen, Inc. (AMEX:ILE) ("Isolagen" or the "Company") between March 3, 2004 and August 1, 2005, inclusive (the "Class Period"), including purchasers of Isolagen stock issued in connection with or traceable to Isolagen's June 9, 2004, common stock offering. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint charges Isolagen, Frank M. Delape, Robert J. Bitterman, Michael Macaluso, Jeffrey W. Tomz, Olga Marko, William K. Boss, Jr. and Michael Avignon with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that U.K. demand for the Isolagen Process had declined; (2) that $51.8 million in marketable debt securities were improperly recorded as cash, thereby overstating the Company's financial results; (3) that the clinical trials of the Isolagen Process for dermal and dental applications were not being conducted in a controlled environment and that the efficacy of the process was insignificant; (4) that the Company's science was not advanced and, as a result, the Company's products would not become commercially available in the United States as early as 2005, and the "ACE System" would not be introduced for new patents in the United Kingdom facility in the fourth quarter of 2004; (5) that the transport medium Isolagen was using was not commercially or scientifically viable; (6) that the marketing and promotion processes employed by the Company in the U.K. to determine demand for the Isolagen Process violated U.K. advertising laws and regulations; (7) that as a result of increased expenses and pricing pressures, Isolagen's gross profit margins were declining; (8) that the Company lacked adequate internal controls; and (9) that the Company's positive statements about its operational and financial performance, cash position and future guidance were lacking in a reasonable basis. On August 1, 2005, the Company disclosed that its preliminary results from its phase III clinical trial of the Isolagen Process had not met all four primary end points and that neither of the two dermal studies had achieved independent statistical significance. On this news, shares of Isolagen fell $2.75 per share, or 49.19 percent, on August 1, 2005, to close at $2.84 per share. Thereafter, on August 10, 2005, Isolagen released the Company's 2Q 2005 financial results, reporting a net loss per share. Following these revelations, the Company's stock declined further to $2.50 per share, down from the Class Period high of $12.04 per share. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/ . If you are a member of the class described above, you may, not later than October 17, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq. of Schiffrin & Barroway, +1-888-299-7706 (toll free) or +1-610-667-7706 or Web site: http://www.sbclasslaw.com/

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