Creative Medical Technology Announces Its ADAPT Trial To Study Its CELZ-201 Is 85% Enrolled

Dear Fellow Shareholder: Creative Medical has entered the second half of 2026 with a strengthened clinical, regulatory, and strategic position across its core programs in chronic lower back pain, osteoarthritis ("OA"), immunotherapy, and biodefense.

This progress, combined with disciplined capital allocation and expanding non-dilutive opportunities, positions the Company for durable value creation on behalf of long-term shareholders.

The Company’s strategy is straightforward: Advance Olastrocel (CELZ-201) toward Phase 3 readiness in chronic lower back pain.

Scale Ultrasome™, the Company’s cell-free osteoarthritis program, as a partner-ready asset.

Build the CELZ-Biodefense Toxic Exposure Atlas™ into a differentiated data and discovery platform with government and strategic collaboration potential.

Recent Clinical and Regulatory Milestones Olastrocel (CELZ-201) – Spine Mobility and Pain Program (ADAPT Trial) Late last year, the World Health Organization approved "Olastrocel" as the International Non-Proprietary Name for the active cellular substance in CELZ-201, the Company’s lead allogeneic cell therapy developed on the AlloStem® platform.

This global naming milestone underscores the maturity and scalability of the program as the Company advances toward late-stage development.

In January, the Company reported positive interim blinded 180-day data from the FDA-cleared ADAPT clinical trial evaluating Olastrocel in chronic lower back pain associated with degenerative disc disease.

The trial demonstrated statistically significant improvements in disability and pain with no serious adverse events or treatment-related safety signals, as confirmed by an independent Data Safety Monitoring Board.

These findings support Olastrocel’s potential as a differentiated, durable regenerative therapy in a large, underserved patient population.

In June, the FDA cleared an expansion of the ADAPT trial to enroll an additional cohort of patients receiving less than 90 mg per day in morphine equivalents to further characterize safety and efficacy in individuals with ongoing opioid use.

The new cohort is already more than 85% enrolled and is supported by a patient-centric AI pain-medication monitoring system that captures real-time patient-reported outcomes and analgesic-use patterns.

Near-Term Olastrocel Priorities Complete enrollment of the expanded ADAPT cohort and continue to generate longer-term follow-up data.

Advance regulatory interactions to align on Phase 3 planning for chronic lower back pain.

Evaluate strategic and partnering pathways as the dataset matures, with the objective of maximizing value while maintaining capital discipline.

Ultrasome™ – Cell-Free Osteoarthritis Program In April, the Company announced breakthrough pilot results for Ultrasome™, its proprietary cell-free regenerative therapy for osteoarthritis of the knee, derived from the CELZ-201 platform.

The study achieved its primary endpoint, with 93% of patients demonstrating clinically meaningful improvements in mobility and pain reduction, and no serious adverse events reported.

These data support Ultrasome™ as an emerging, scalable, cell-free regenerative therapy targeting a high-volume market where current options often provide only transient relief.

Near-Term Ultrasome™ Priorities Design and initiate the next stage of clinical development, with a focus on multi-center, controlled data generation to confirm and extend the pilot results.

Explore strategic pathways, including potential regional or indication-specific partnerships, to accelerate development and commercial planning while limiting dilutive capital needs.

CELZ-Biodefense Platform – Project PHOENIX and Toxic Exposure Atlas™ Earlier this year, the BioDefense Inc.

Burn Pit Initiative received regulatory approval to proceed nationally, marking a major milestone in the mission to address the long-term health consequences of toxic burn pit exposure among U.S. veterans.

The program is being implemented without the need for new capital raises, leveraging existing strategic alliances, infrastructure, and vendor relationships, and exemplifying the Company’s commitment to capital efficiency.

In June, Project PHOENIX advanced into a nationwide, AI-enabled virtual data collection phase intended to scale to at least 1,000 veterans through mobile-app registry and field-capable logistics.

This initiative feeds into the proprietary CELZ-Biodefense Toxic Exposure Atlas™, which integrates exposure history, clinical outcomes, multi-omics datasets, cell-response information, and disease biology into a unified framework for AI-driven discovery.

Near-Term Biodefense Priorities Complete initial enrollment and data ingestion for the first 1,000 veterans in the burn pit registry.

Advance AI-based modeling to identify exposure-linked molecular signatures and potential regenerative countermeasures using the Company’s stem cell and iPSC platforms.

Pursue government and strategic collaborations that recognize the Atlas as a differentiated data asset and help expand the platform into broader military and civilian populations.

Disciplined Capital Allocation and Value-Linked Financing The Company’s approach to capital remains a central component of its strategy.

Creative Medical operates a lean corporate structure and is highly focused on investing in programs with clear paths to differentiation, regulatory advancement, and commercial or partnering potential.

The Company is not compelled to pursue dilutive or opportunistic financings simply to "keep the lights on." Instead, the intent is to align any future capital raises with well-defined, value-creating milestones, including: Completion of key Olastrocel/ADAPT datasets and advancement toward Phase 3 planning.

Initiation and readout of next-stage Ultrasome™ studies in osteoarthritis of the knee.

Demonstration of initial AI-derived insights and partnership interest related to the CELZ-Bi