MEDG Medgenics(Regs)

    Medgenics, Inc
                         ("Medgenics" or the "Company")
                                        
                                12 November 2008

  *   17% OF MEDGENICS COMMON SHARES NOW UNRESTRICTED USING NEW TICKER MEDU
  
  *   DE-RESTRICTION ON TRANSFER OF SHARES MAKES MEDGENICS MORE ACCESSIBLE  TO
      INVESTORS, AND IS EXPECTED TO EXPEDITE TRADING
  
  *   UNRESTRICTED SHARES TO BE TRADED SEPARATELY ON AIM (ticker: MEDU)

  *   FURTHER TRANCHE OF COMMON SHARES MAY BECOME ELIGIBLE FOR DE-RESTRICTION IN
      DECEMBER

Medgenics  currently  has  a total issued share capital  of  106,698,076  common
shares  of par value of US $0.0001 each ("Common Shares").  All of these  Common
Shares  were subject to restrictions on transfer under the US Securities Act  of
1933 (as amended) (the "US Securities Act"), at the time of admission to AIM  in
December 2007 and are currently traded under the ISIN USU582411075 and the  TIDM
(ticker) MEDG.

All  share  certificates for Common Shares originally included  a  statement  or
"legend"  referring to these restrictions.  Subsequent to admission to AIM,  the
holders  of a total of 18,271,007 Common Shares have made successful application
for  the removal of the restrictive legends from their share certificates  under
Rule  144 of the US Securities Act (a "Section 144 Application"), which  can  be
made  by  a  shareholder who is not an affiliate of the  Company  and  has  held
his/her Common Shares for at least one year. These 18,271,007 Common Shares are,
therefore, no longer subject to restrictions on transfer under the US Securities
Act  and the Company has applied for these shares to be traded separately  under
the ISIN US58436Q1040 and the TIDM (ticker) MEDU. Once the restrictive legend is
removed,  unrestricted stock may generally be sold to any purchaser,  regardless
of  their  nationality. Trading of these Common Shares under this  new  ISIN  is
expected from 13 November 2008.

These unrestricted shares under the new ISIN will also be capable of being  held
and  transferred  within CREST.   Accordingly, as anticipated in  the  Admission
Document,  the  Company  is currently seeking to establish  depository  interest
("DI")  arrangements  and is applying to Euroclear UK  &  Ireland  Limited  (the
operator  of  CREST)  for admission for settlement through  CREST  of  the  DI's
representing the unrestricted Common Shares.

The  Common  Shares  will not themselves be admitted to CREST  but,  instead,  a
depository  service provider approved by the Company will issue DIs representing
the  underlying unrestricted Common Shares, which will be transferred to the  DI
provider  and held on trust for the holders of the DIs.  The DIs themselves  are
independent  securities constituted under English law, which  may  be  held  and
transferred within the CREST system.  CREST is a voluntary system and holders of
unrestricted Common Shares who wish to retain share certificates shall  be  able
to do so.

The  Company has commenced the DI facility and CREST enablement process  and  an
update  on the progress with this project, giving firm details of the enablement
date for CREST dealings in the DIs, will be issued by the Company in due course.

The  remaining  88,427,069 Common Shares are still subject  to  restrictions  on
transfer  under the US Securities Act and will continue to trade under the  ISIN
USU582411075 and the TIDM (ticker) MEDG and the relative share certificates will
continue to bear the restrictive legend.

The  Company  notes  that a further significant tranche of  Common  Shares,  may
become eligible to have the restrictive legend removed on 4 December 2008, as  a
result of such shares having been held by non-affiliate holders for at least one
year.   If a holder of Common Shares whose share certificate bears a restrictive
legend  wishes to ascertain if such restrictive legend is eligible for  removal,
he/she   should  contact  the  Company  to  clarify  the  position  and   (where
appropriate)  receive  instructions on how to facilitate such  removal  and  the
migration of his/her Common Shares to the newly established ISIN.  It  is  hoped
that  these measures will significantly improve transferability of the  affected
Common Shares going forward.  Further details of these arrangements will also be
available on the Company's website (www.medgenics.com).

Dr Andrew Pearlman, Chief Executive Officer, commented:

"We  are  pleased that 17% of the current shares are no longer  subject  to
transfer  restrictions  and  we  expect  that  this  will  make  Medgenics  more
accessible to investors and will, we hope, expedite trading and allow  investors
to  trade  more  freely  trade in Medgenics shares on  the  open  market.  Going
forwards we expect an even larger tranche of shares to be eligible to have their
restrictions  removed  and  the  Company is  also  working  towards  setting  up
facilities to ensure all unrestricted shares can be traded electronically and we
will update the market as progress is made towards this.
     
The  Directors  and  I  believe that the increasing accessibility  of  Medgenics
shares  to  investors  will allow them to invest in,  what  we  believe  is,  an
exciting  opportunity which the Directors believe will be borne out  by  further
clinical results over the forthcoming months."


For further information, contact:

Medgenics, Inc.                      Phone: +972 4 902 8900
Dr. Andrew L. Pearlman           

Grayling Global (Financial PR, UK)   Phone: +44 207 255 5406                           
Jonathan Shillington                 jonathan.shillington@uk.grayling.com   
Alistair Scott
  
Blomfield Corporate Finance Limited  Phone: +44 207 489 4500
(Nominated Adviser)
James Pinner
Alan MacKenzie

SVS Securities plc (Broker)          Phone: +44 207 638 5600
Peter Manfield                   
Ian Callaway

United States contacts:          
                                 
Grayling Global,                     Phone: +1 646 284 8472
(Investor Relations)                 lwolf-creutzfeldt@hfgcg.com
Leslie Wolf-Creutzfeldt         
                                 
Grayling Global, Media Relations     Phone: +1 646 284 9455
Ivette Almeida                       ialmeida@hfgcg.com
                  



NOTES TO EDITORS:

Medgenics,  Inc.  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.

Medgenics currently has two products in development based on this technology:

*    EPODURE - producing erythropoietin (EPO) to treat anemia
*    INFRADURE - producing interferon-alpha (IFN-a) to treat hepatitis C

The  Company  has  demonstrated  proof of principle  of  the  Biopump  treatment
procedure in a clinical trial using a short-acting version of EPODURE in  anemic
subjects.  The  Company announced positive initial results  in  its  Phase  I/II
clinical  trial for its long-acting version of EPODURE, designed to produce  and
deliver  a  therapeutic dose of EPO steadily for three to six  months  or  more,
which  commenced  in August 2008. The Company plans to follow  with  a  clinical
trial of INFRADURE in 2009.

Medgenics  intends to develop its innovative products and bring them  to  market
via  multiple  strategic partnerships with major pharmaceutical  and/or  medical
device companies, starting with EPODURE and INFRADURE.

Beyond these, 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 areas
include multiple sclerosis (interferon-a), haemophilia (Factor XIII), paediatric
growth hormone deficiency (human growth hormone) and diabetes (insulin).

Founded in 2000, Medgenics is a US-incorporated company with major operations in
Misgav, Israel. Medgenics was admitted to AIM in December 2007 (AIM: MEDG).

www.medgenics.com

CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This  release contains forward-looking statements, which include all  statements
other  than statements of historical fact, including (without limitation)  those
regarding  the  Company's  financial  position,  business  strategy,  plans  and
objectives  of  management  for future operations. These  statements  relate  to
future   events,   prospects,   developments  and  strategies.   Forward-looking
statements  are sometimes identified by their use of the terms and phrases  such
as "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning,
"expect," "believe," "will," "will likely," "should," "could," "would," "may" or
the  negative of such terms and other comparable terminology. All such  forward-
looking  statements are based on current expectations and are subject  to  risks
and  uncertainties. Should any of these risks or uncertainties  materialize,  or
should  any  of  the Company's assumptions prove incorrect, actual  results  may
differ  materially from those included within these forward-looking  statements.
Accordingly,  no  undue  reliance  should be  placed  on  these  forward-looking
statements,  which  speak  only  as  of the date  made.  The  Company  expressly
disclaims  any obligation or undertaking to disseminate any updates or revisions
to  any forward-looking statements contained herein to reflect any change in the
Company's  expectations with regard thereto or any change in events,  conditions
or  circumstances on which any such statements are based. As a result  of  these
factors,  the  events described in the forward-looking statements  contained  in
this release may not occur.


END

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