Arthro Kinetics plc
07 June 2007


Press Release

Arthro Kinetics plc - expands agreement with Chinese partner

THURSDAY, 7th June 2007 - Arthro Kinetics plc (AIM: AKI) ('Arthro Kinetics' or
'the Company'), the orthopedics company dedicated to regenerating joint mobility
and spinal disc function, announces that it has significantly expanded its
relationship with its joint venture partner, Arthro Anda Tianjin Biologic
Technology Co. Ltd. ('Joint Venture Company'), for the commercialisation of its
CaReS(R) biologic cartilage regeneration products in China, Taiwan and Hong Kong
(Macau).

The Joint Venture Company, of which Arthro Kinetics owns approximately 15 per
cent, was initially established in September 2006 for the production of CaReS(R)
products using Arthro Kinetics' proprietary 3 dimensional collagen matrix. The
expansion of this relationship to cover additional technology, the licensing of
the Company's trademarks and the provision of technical support services by
Arthro Kinetics will enable the Joint Venture Company to better and more rapidly
commercialise the CaReS(R) products in China and is expected to result in
initial revenues for Arthro Kinetics in 2007. Local manufacturing of CaReS(R) on
the Hi-Tech Industry Park in the Free Trade Zone of Tianjin is expected to begin
by the end of 2008.

Arthro Kinetics has recently completed the treatment of Ms Zhang Ping, a member
of the Chinese Olympic & Tianjin woman's volleyball team and the Tianjin. Ms
Ping was previously unable to play as a result of a large cartilage defect of
the femoral chondyle. She recently underwent a successful CaReS(R) implantation,
and is hoping to participate in the 2008 Olympic Games.


Jason Loveridge, CEO of Arthro Kinetics commented:

'We are delighted that the relationship with our Chinese partners in Tianjin is
developing in such a positive fashion through which we expect to achieve earlier
introduction of CaReS(R) into the Chinese market. The treatment of such a high
profile athlete as Zhang Ping is a first for China and a significant validation
of the potential of CaReS(R). We hope that her successful treatment will not
only raise awareness of CaReS(R) in China, but will help speed the introduction
of CaReS(R) into China and reinforce the potential of CaReS(R) for athletes with
cartilage problems'.


Mr Cui Hong Jin, Chairman of Arthro Anda Tianjin Biologic Technology Co. Ltd.
comments:

We are extremely pleased to be expanding our joint venture with Arthro Kinetics.
We are making good progress towards opening our manufacturing facility in
Tianjin by the end of 2008 and on registering the CaReS(R) product for sale in
China. As to the treatment of Zhang Ping, volleyball is a high profile sport in
China and one where we hope for success in next year's Olympic Games. We believe
the treatment of Zhang Ping will help drive interest in CaReS(R) in China'.

Good volume recently, announcments and a break up in the share price...

Watching this one...

UK smallcap opening - Arthro Kinetics moves up on JV expansion
AFX


LONDON (Thomson Financial) - Arthro Kinetics moved up 3/4 to 10-1/4 following news that the company has significantly expanded its relationship with joint venture partner Arthro Anda Tianjin Biologic Technology Co for the commercialisation of its CaReS cartilage regeneration products in China, Taiwan and Hong Kong (Macau).