[2] Ortec Extends Expiration Date of Class B Warrants; Potential Achievement of Near Term Milestones Cited as Reason for Extension.

NEW YORK--(BUSINESS WIRE)--Nov. 17, 1999--

Ortec International, Inc. (NASDAQ: ORTC) announced the extension of the expiration date of its Class B warrants (NASDAQ: ORTCZ) to January 31, 2000. The warrants currently have a $15 exercise price and were set to expire on November 30, 1999. The company has the right to reduce the price of the warrants up to 30% below the market price of the common stock, if it so chooses. There are approximately 1,188,600 Class B warrants and approximately 6.6 million primary common shares currently outstanding. Today's closing price of the common shares was $ 6 3/8.

It is management's belief that the current share price does not reflect fair value of the Company. In addition, management believes that at least two of its projected milestones will be reached before the new expiration date. Specifically, Ortec expects to file with the FDA for permission to market its product for the treatment of four skin diseases and complete the enrollment in its pilot venous ulcer trial along with the release of the preliminary data from that trial. The achievement of these milestones may favorably impact Ortec's share price, thereby potentially increasing the value of the warrants to the warrant holders and the company.

The Class B warrants were part of Ortec's initial public offering of its securities in January 1996. Through that offering, Ortec issued 1.2 million units at a price of $5 per unit. Each unit consisted of one common share and one Class A and one Class B warrant with exercise prices of $10 and $15, respectively. In December 1997, the holders of 1,080,000 Class A warrants exercised them providing Ortec with $10.8 million in gross proceeds. The outstanding Class B warrants represent a potential of $17.8 million of gross proceeds to Ortec.

Discussing the extension of the Class B warrants, Steven Katz, Ph.D., CEO of Ortec said, "Despite some very meaningful progress over the past few months in our clinical trials, continued interest from potential corporate partners, and transitioning the company to a commercial mode, we believe we have not received the recognition that reflects the value added. However, over the course of the coming months, we are hopeful that the specific milestones which we expect to achieve, including applying to the FDA for permission to launch our first commercial product, the presentation of preliminary human clinical data on venous stasis skin ulcers and continuing down the path of securing a meaningful corporate alliance, we will gain the appropriate recognition and thereby provide the opportunity to make these warrants valuable to the company and to our shareholders."

About Ortec International, Inc.

Ortec International, Inc. is a tissue-engineering company involved in the commercialization of a proprietary and patented technology to s timulate the repair and regeneration of human tissue, such as skin. Ortec believes that its platform technology may extend to the development of other human tissue, such as tendons, ligaments, cartilage, bone, muscle and blood vessels.

Certain statements made in this news release that express the belief, potential anticipation or expectation , as well as other statements which are not historical fact, and statements relating to the clinical trials and their results, design, FDA product approvals or other marketing approvals, features, functionality and performance insofar as they may apply prospectively, are "forward looking" statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in this news release or in other "forward looking" statements presented by management. Factors that might cause such a difference include, but are not limited to, development by the Company's competitors of new technologies or products that are more effective than the Company's, risks of failure of clinical trials, dependence on and retention of key personnel, protection of proprietary technology, compliance with U.S. Food and Drug Administration regulations, continued availability of raw material for the Company's products, availability of product liability insurance in the event of commercialization of the Company's products, ability to effect transition from pilot-scale manufacturing to large-scale commercial production of products, uncertainty as to the availability of additional capital on acceptable terms, if at all, and the demand for the Company's products, if and when commercially available.