(AMEX Symbol: XCR) Presentation January 14, 2008

1. (AMEX Symbol: XCR) Presentation January 14, 2008

2. Forward-Looking Statements Except for statements of historical fact, the matters discussed in this presentation are forward looking and pursuant to the safe harbor provisions of the private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risk and uncertainties, many of which are beyond the company’s control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing, exploiting, and protecting proprietary technologies, the risk that our technology may not be effective, uncertainty as to the outcome of legal proceedings, intense competition, and substantial regulation in the medical device and healthcare industries, as discussed in the Company’s periodic reports filed with the Securities and Exchange Commission, available on its website at http:/www.sec.gov.

3. Terren Peizer Executive Chairman Winson Tang, MD,FACP Chief Operating Officer Victor Gura, MD Chief Medical Officer Robert Weinstein, CPA, MBA Chief Financial Officer CEO, Chairman & Founder Hythiam Amgen, Vertex, Tularik, Isis, Pacific Capital Grp Cedars-Sinai Med. Cntr, Assoc. Clin. Prof., UCLA Citi Private Equity, Able Labs, GE Capital Management Team

4. Hans Polaschegg, PhD Dan Goldberger, MSME Kelly McCrann, MBA Fresenius, Chairman - Extracorp Circ & Infusion Tech Committee Sound Surgical, Glucon, OSI Systems, Optiscan, Nellcor DaVita, PacificCare, KPMG, McKinsey Selected Board Members

5. Xcorporeal Highlights • Extra-corporeal medical devices that could replace the function of failing or failed organs • Multiple initial products • Portable Hospital Hemodialysis device • Portable Home Hemodialysis device • Wearable Artificial Kidney • First U.S. 510(k) filing Q4, 2008 - FDA clearance expected Q1, 2009 • Minimal to low risk strategy • Prototype device tested successfully in humans • Well defined and straightforward regulatory strategy • Well delineated reimbursement codes • Multi-billion dollar and clearly defined markets

6. XcorporealRenal Replacement Therapy Devices • Portable Hemodialysis Device - Hospital CRRT/Acute Hemodialysis • Portable Hemodialysis Device - Home Hemodialysis – ESRD • Wearable Artificial Kidney - Home Hemodialysis – ESRD

7. Xcorporeal Hospital Portable Renal Replacement Device • Truly portable device • Smaller (< two cubic feet) and lighter than competitor devices (30-40 lbs) • Reduced fluid (dialysate) requirement • Easier to operate, reduced training requirement • Fully functional • Continuous Renal Replacement Therapy (CRRT) • Intermittent Hemodialysis • Product status • Functional prototype undergoing bench testing • FDA 510(k) filing in Q4, 2008

8. Xcorporeal Proprietary Disposable Manifold • The complexity of setting up a dialysis machine has been reduced to a single step of inserting a proprietary manifold into the machine. • This reduces machine size, disposable cost, and simplifies operation.

9. Benefits of Xcorporeal Hospital Portable Renal Replacement Device • Decrease workload for hospital ICU staff • No plumbing requirements • Use simple tap water versus bagged dialysate • Simple to use operator interface • Snap-in disposable unit • Simple set-up, tear down and clean-up • Cost effective • Decrease in medical staff time (nurse, pharmacist) • Decrease in staff training downtime • No need for bagged dialysate ($180/treatment) • Flexibility • Truly portable, no utility hookup limitations

10. Portable DeviceDevelopment Timeline Full Product Specification - COMPLETE Functional Prototype - COMPLETE Bench Testing Industrial Design Prototype Pre-Production Prototype Verification & Validation FDA Submission Q1 Q2 Q3 Q4 Q1 Q2 2008 2009

11. US Market Opportunity = $1.4 billion Growing at 10% per year Aging Population Increasing severity of hospitalized patients Disposable Market 242,000 patient hospitalizations per year estimated 2008 Average 8 days per hospitalization $500 revenue per day for fluids and disposables Disposable Market = 242,000 x 8 x $500 = $968 million Device Market Market = 62,000 beds x .25/bed x $30k/machine = $465 million Hospital Hemodialysis Device Market

12. Xcorporeal Home PortableRenal Replacement Device • Truly portable device • Smaller (< two cubic feet) and lighter than competitor devices (30-40 lbs) • Reduced fluid requirement • Easier to operate, reduced training requirement • No special plumbing nor electrical requirements • Fully functional • Wide range of flow rates – treat larger patients • Product status • Working prototype • FDA 510(k) filing in Q2 2009

13. Benefits of Xcorporeal HomePortable Renal Replacement Device Truly portable Substantially smaller and lighter than any existing device No utility requirements, tap water and 110VAC only Ease of Use No fluid handling device Fully disposable fluid circuit, no cleaning or sterilization 50 – 600 ml / minute range of flow rates Ease of Treatment One step, one-handed set up Graphical user interface 13

14. Home Use Development Timeline Full Product Specification - COMPLETE Functional Prototype - COMPLETE Bench Testing Industrial Design Prototype Pre-Production Prototype Verification & Validation Clinical Trial FDA Submission Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 14

15. Chronic Hemodialysis Market • U.S. Market Opportunity = $6.7 billion • 357,000 chronic dialysis patients • 3 treatments per week • $120 Medicare reimbursement / treatment • Market = 357,000 x 3 x $120 x 52 weeks = $6.7 billion • Home hemodialysis penetration is less than 1% today but will grow because • Appropriate equipment becomes available (Xcorporeal, NxStage, Fresenius off label) • Longer, more frequent therapy is better medicine (4+ treatments per week versus 3) • Home hemodialysis reduces capital and skilled labor requirements 15

16. Home Hemodialysis is a significant Growth Opportunity in ESRD Patient Benefits Increased time on hemodialysis with improved outcomes Potential for daily dialysis Improved quality of life: diet, sleep, time Provider Benefits Decreased need for nurses/techs Increase in revenues without need for additional infrastructure More frequent treatments decreases need for expensive medications 16

17. Home Hemodialysis Device Comparison 17

18. XcorporealWearable Artificial Kidney • “Disruptive” technology • Wearable, battery operated light-weight device • Fully automated, simple to use • Prototype tested successfully • Successful human trials published in The Lancet & Kidney International December 2007 • 24 hrs/7 days therapy with potential to revolutionize care of ESRD patients

19. Wearable Artificial KidneyFeasibility Prototype

20. Wearable Artificial Kidney Bi Phase Pump Metering Pump Metering Pump Heparin Sorbent 3 Infusate Sorbent 2 Patient Metering Pump Dialyzer Bi- Carbonate Bubble Sensor Blood Sensor Sorbent 1 Metering Pump Blood Loop Sterile Change weekly in clinic Dialysate Loop Change daily at home Waste Drain Valve

21. Clinical Trial Results • Initial clinical study conducted with a prototype device at The Royal Free Hospital, London • 8 ESRD subjects dialyzed for mean of 6.4 hrs • Clearances of creatinine, urea, and beta-2-microglobulin achieved (chart follows) • No adverse events reported • Subjects were able to walk unhindered during dialysis treatment • Presented at ASN November 5, 2007

22. Clinical Trial Results Sustained reductions in key blood chemistries Clearance of both small and middle molecules Clearance meets or exceeds daily toxin production 22

23. WAK Development Timeline Feasibility Prototype - COMPLETE Feasibility Studies - COMPLETE Second Generation Prototype Longer Duration Feasibility Studies Pre-Production Prototype Clinical Trial Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 23

24. Intellectual Property • Portable Artificial Kidney • 18 patents pending or in process • Wearable Artificial Kidney • Exclusive in-licensed patents • Wearable ultra-filtration device • Wearable, self-contained, device for continuous excess fluid management • Wearable continuous renal replacement therapy device • Expands on patent above to include renal replacement patients and battery-operated power source

25. Selected Financial Information September 30, 2007 • Cash and Marketable Securities - $20.3 million • Shares Outstanding - 14.4 million • Market Capitalization - $72 million at 12/31/07 • $1.2 million monthly cash burn rate

26. Company Near-Term Milestones • Hospital Portable Hemodialysis Device • Functional Prototype (completed) Q4, 2007 • Pre-Production Prototype Q3, 2008 • FDA 510(k) submission Q4, 2008 • Commercializationtarget Q2, 2009 • Home Portable Hemodialysis Device • Functional Prototype (completed) Q4, 2007 • Pre-Production Prototype Q3, 2008 • Clinical trial Q2, 2009 • FDA 510(k) submission Q3, 2009 • Commercialization target Q4, 2009

27. Comparable – NxStage Medical (NXTM) • Emerging growth hemodialysis company • “System One” device • Home hemodialysis: > 2,000 patients; <0.5% market • Hospital CRRT for acute renal failure • Financial Metrics • $560M market capitalization – 12/31/07 • 14x trailing twelve months revenues • 9x annualized Q3, 2007 revenues • Quarter ended September 30, 2007 financial highlights • $33M in cash • $13M operating expenses • $16.1M operating loss

28. Comparable AcquisitionFresenius purchase of Renal Solutions • $190 million purchase price • $100 million at closing • $60 million in one year, $30 million contingency • Sorbent technology • Allient device • Cleared by FDA over two years ago • Not brought to market • Why significant for Xcorporeal • Suggests sorbent technology valuable • High acquisition price for “scarce” assets

29. Xcorporeal Highlights • Extra-corporeal medical devices that could replace the function of failing or failed organs • Multiple initial products • Portable Hospital Hemodialysis device • Portable Home Hemodialysis device • Wearable Artificial Kidney • First U.S. 510(k) filing Q4, 2008 - FDA clearance expected Q1, 2009 • Minimal to low risk strategy • Prototype device tested successfully in humans • Well defined and straightforward regulatory strategy • Well delineated reimbursement codes • Multi-billion dollar and clearly defined markets

30. APPENDIX

31. Nina Peled, PhD, MBA SVP - Quality & Regulatory James Braig, MSME SVP - Product Dev. Barry Fulkerson VP - Hardware Systems Russ Joseph, MS VP - Disposable Engineer Hansen, Cygnus, Amira, Lumenis, i-STAT, BM Optiscan, Square One Tech, Ohio Medical NxStage, COBE (Prisma, CS3), Gambro Gish Biomedical, Sorin, Baxter Healthcare Management Team

32. Product Development Team • Internal team of engineers with expertise in dialysis equipment and disposables who previously worked at Cobe, Gambro, Aksys, NxStage and Baxter • Contract Product Development Group in Southern California to leverage the expertise of an additional 10-15 engineers • Manufacturing to be outsourced

33. Renal Disease Overview • Acute Renal Failure • Hospital-based, majority in Intensive Care Unit • 200,000 acute renal failure patients – 50% mortality rate • End Stage Renal Failure • Approximately 2 million “known” ESRD patients worldwide • 65% of patients expire within 5 years • Patient’s poor quality of life • Care provided primarily outside the home • Non-ambulatory • Intermittent care – Significant peaks and valleys • Constantly ill • Majority disabled

34. Reimbursement Codes (CMS/Medicare) are Established

35. Regulatory Strategy

36. Renal Replacement Therapy Market Opportunity - Company estimates