ATS Liquidating Trust Announces 2004 Cash Distribution.

Business Editors

BIOWIRE2K

SAN DIEGO--(BUSINESS WIRE)--June 15, 2004

The ATS Liquidating Trust (ATISZ.PK -- please read the disclaimer in the last paragraph of this release regarding trading under this symbol) today announced a distribution of three cents ($.03) per share to Trust beneficiaries that held ATS stock as of March 31, 2003, the Effective Date of ATS' Liquidating Plan of Reorganization (the Plan). The distribution will be made today, June 15, 2004.

Under a provision of the Plan as approved by the Court, the Trust is not required to make a current distribution to former shareholders where the amount of that individual distribution is less than $200, unless the distribution is a final distribution of the Liquidating Trust. For those beneficiaries whose distribution is less than $200, accounts will be set up in their names and they will be paid at a subsequent distribution when their individual account is in excess of $200 or at the time of the final distribution.

The Trust has wired money to its transfer agent, Mellon Investor Services, LLC, for distribution. It will then take Mellon several business days to print checks and prepare for their distribution by U.S. mail. Mellon will then forward the distribution to Trust beneficiaries who were Advanced Tissue Sciences, Inc. stockholders of record as of the close of business on March 31, 2003. Those former stockholders should not expect to receive their distribution for at least five to ten business days.

Brokerage firms will receive lump-sum checks covering all the former shares held by their clients. Former stockholders whose shares were held in a brokerage account will receive any distribution from their broker and they should contact their broker to be sure any distributions are forwarded to them or credited to their accounts.

Subsequent distributions will depend on the timing of additional asset sales, the proceeds of any such asset sales, the amount and timing of the receipt of royalties, milestone payments and any other cash that becomes available to the Trust. The Trustee cannot predict when further distributions will occur. However, subsequent distributions are expected to be made at least annually until there is a final liquidating distribution.

This release contains forward-looking statements regarding future cash distributions from the sale of assets of ATS by the Trust pursuant to the Chapter 11 Liquidating Plan of Reorganization which was confirmed by the Bankruptcy Court by a final order dated March 21, 2003 and which became effective on March 31, 2003. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The risks and uncertainties are detailed in the Plan and Disclosure Statement filed with the Bankruptcy Court. The Trust undertakes no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.

As a result of the Plan, the stock of ATS was cancelled and its former stockholders now hold non-trading interests in the ATS Liquidating Trust. According to the terms of the Plan, the Interests in the ATS Liquidating Trust are not to trade and the Liquidating Trustee will only recognize as beneficiaries of the Trust those equity holders of record as of the effective date of the Plan. Any trading that may be occurring after the effective date of the Plan under the symbol "atisz.pk" or otherwise is unauthorized by the Plan and will not be recognized by the Trustee. As a result of the terms of the Plan and the order of the Bankruptcy Court confirming the Plan, the Securities and Exchange Act of 1934 as amended and the rules promulgated thereunder no longer apply to the Company since it has no issued stock, no shareholders, and is no longer in business. However, to the extent applicable, the above cautionary statement is made by the Trust under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.