Dear Friends of Aastrom,

As the new interim chief executive officer of Aastrom Biosciences, I am honored to lead the company as we continue to advance the clinical research programs for our lead product candidate, ixmyelocel-T.  I believe we have a unique opportunity to improve the lives of people with severe, chronic cardiovascular diseases with ixmyelocel-T, and am very pleased to have the opportunity to bring my experience building successful pharmaceutical brands to this development program as we begin to formulate plans related to commercialization.  Since I joined Aastrom in August as chief commercial officer, I have seen firsthand the potential of our technology to treat these diseases and the dedication of our team to bring this promising therapy to patients who may benefit from it.

Our work with many of the leading clinicians in vascular medicine will continue to be critical to the success of our drug development programs.  As I take on this new role at Aastrom, I want us to build on these relationships as we continue to enroll patients in the REVIVE CLI Phase 3 trial and position the Phase 2b DCM trial to enroll patients in 2013.  In addition, we will advance our preclinical research efforts to identify additional cardiovascular diseases where ixmyelocel-T may be beneficial.

We will continue to build on our legacy in many other ways in the weeks and months ahead.  Our company has established a reputation for transparency and candor that we must continue to uphold.  We will continue to communicate openly about our business activities and clinical research results, and we will hold ourselves accountable to our stakeholders and make decisions that are in their best interests.  Most of all, we will remain dedicated to our goal of helping people with severe, chronic cardiovascular diseases.

Thanks to strong management and great science, Aastrom is a recognized leader in regenerative medicine with one of the most advanced clinical programs in the industry.  As we work to develop our commercialization strategy for ixmyelocel-T, I offer my full commitment to helping Aastrom achieve this goal and express my sincere thanks to our colleagues and investors for their support in this endeavor.

Regards,

Daniel Orlando