Press Room

Vitro Announces Open Letter to Its Shareholders: 2007 Results and 2008 Prospects

Aurora, Colorado-February 26, 2008-Vitro Diagnostics, Inc. (OTCBB: VODG), dba Vitro Biopharma, announced the following open letter to its shareholders:

Dear Fellow Shareholders:
Vitro enjoyed significant advances in 2007 that we believe have set the stage for further accomplishments during 2008.  During the past year, we discovered a breakthrough method for stem cell differentiation, announced the construction of a custom manufacturing facility, increased product sales and received outside funding.  In the first quarter of 2008, we completed a private placement of securities to a group of three investors that raised additional capital that provides a foundation for our business expansion in 2008.

Since we sold our antigen manufacturing division to Aspen Biopharma, Inc. (Nasdaq, APPY) in 2000, Vitro has focused its operations on development of cellular immortalization technologies.  This led to discovery of a patent-pending method to generate adult stem cells from tissues.  We are now focused on the development of products and technologies for potential use in the treatment of diabetes both through the development of new tools for use in drug discovery and development as well as for cell transplantation of stem cells or their products to eventually lead to more advanced treatments for diabetes. In addition, our technology may have broader application by allowing generation of other cell lines of medical value such as heart cells, muscle cells and blood cells.

Our new facility is now in advanced stages of construction and, when complete, will accommodate our corporate headquarters, manufacturing and R&D.  This modern laboratory will expand our operational capacity and also allow for additional future expansion.  We now have the financial support to expand our resources in an effort to achieve our business goals, including commercialization of products derived from our stem cell technology targeting markets in diabetes research, drug development and animal therapeutics.  Management believes that the advanced state of its technology and long-term commitment to cell line generation places Vitro at a significant competitive advantage in the global efforts to commercialize pancreatic stem cell technology.  We have a unique opportunity to leverage our advanced stem cell differentiation technology into becoming the first firm to market stem cell-derived human pancreatic beta islets.
There may also be opportunities for mergers and acquisition in 2008.  Vitro owns patented technology for the production of fertility drugs and we may divest these assets to focus on stem cell related products.  We intend to explore viable options for growth through acquisition as well as appropriate business combinations with suitable partners that may provide mutual benefit.

In conclusion, the prospects for 2008 include further business expansion through commercialization of stem cell-derived human beta islets, possibly as the first firm to do so.  We also intend to move into an expanded facility to support the manufacturing and R&D needed to maintain and expand revenues derived from sales of these and related stem cell products.  I appreciate the continued interest and support that you the shareholders have provided and look forward to a successful future.  At the same time, we have opportunities to advance medicine through the application of stem cell technology to provide treatments to conditions such as diabetes that represent significant health care burdens to society, families and especially those afflicted with diabetes.

Sincerely yours,
James R. Musick, Ph.D.
President and CEO

Safe Harbor Statement

Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as "intends," "anticipates," "believes," "expects" and "hopes" and include, without limitation, statements regarding the Company's plan of business operations, product research and development activities, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, acceptability of the Company's products in the market place, general economic conditions, receipt of additional working capital, the overall state of the biotechnology industry and other factors set forth in the Company's filings with the Securities and Exchange Commission. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to publicly update these forward looking statements, whether as a result of new information, future events or otherwise.