Angiotech Announces Results for Second Quarter Ended March 31, 2000.

Business Editors

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--May 15, 2000

The second quarter of fiscal 2000 was a momentous time for Angiotech (NASDAQ:ANPI)(TSE:ANP.) as Cook, Inc. initiated human studies of the paclitaxel-coated stent, we began trading on Nasdaq, closed a CAD$137.8 million financing and reported extension results from our MS study.

Early in the quarter, Boston Scientific made a CAD$1.8 million milestone payment to Angiotech (Cook, Inc. made its milestone payment in late fiscal Q1), triggered by regulatory approval to begin clinical studies of a paclitaxel-coated coronary stent. These payments are the first in a series of payments to Angiotech required under our co-exclusive worldwide licensing agreement. Preliminary results from one or both of these studies are expected before the end of the year.

Of great significance this quarter was our U.S. listing and follow-on offering. On February 17, Angiotech began trading on the Nasdaq National Market securities exchange (ticker symbol: "ANPI"). The following week we announced a public offering of 1.75 million common shares. The financing closed at a price of CAD$78.77 per share, raising CAD$137.8 million. Angiotech now has approximately CAD$157.5 million in the bank, securing the Company's financial future.

During the quarter we also announced progress with our secondary progressive MS program, as we reported the treatment extension results from our Phase I/II study. The 22 patients continued to show favorable trends in both clinical disability and MRI outcome measures during the extension period. Clinical disability, measured monthly using the Expanded Disability Status Scale (EDSS), showed that more than 95% of the patients (21 out of 22) remained stable or improved after twelve treatments administered over a 16-month time span. Fifteen patients demonstrated disease stabilization, six showed confirmed disease improvement and only one patient exhibited confirmed disease progression. The average EDSS score among all patients improved by 0.205 over the 16-month period.

Before and after each six-month treatment phase patients were assessed by MRI. Preliminary results indicate that patients treated at 50 mg/m2 for the entire study showed favorable trends in gadolinium enhancing lesions, burden of disease, validated lesion number, black hole number and black hole volume. The above MRI measures will be further evaluated in our Phase II clinical study, which utilizes MRI parameters as the primary outcome.

And finally, at the Annual Meeting in March, two Directors were appointed to the Board: Ken Galbraith and David Howard. Kenneth H. Galbraith, CA, is Senior Vice President and Chief Financial Officer of QLT PhotoTherapeutics, Inc. and has been with that Company since 1988. David T. Howard, is President & Chief Operating Officer of Novopharm International of Toronto, Ontario, and President of Novopharm USA Inc. Prior to joining Novopharm, Mr. Howard was Vice President - Pharmaceuticals with Boehringer Mannheim Canada. These new additions to our Board compliment the experience of our existing Directors and add a significant level of expertise in clinical development.

On behalf of everyone at Angiotech we thank you for your continued support. Best regards, William L. Hunter, Chairman and CEO Donald E. Longenecker, President and COO

Angiotech reports second quarter results: Shares issued 15,202,248

Angiotech Pharmaceuticals, Inc. has issued its report to shareholders including financial results for the second quarter ended March 31, 2000. All amounts reported are in Canadian dollars.

Revenues increased to approximately $2.41 million for the three months ended March 31, 2000 from approximately $0.35 million for the same period in 1999. This increase was primarily due to the receipt of a milestone payment from a corporate partner, Boston Scientific Corporation under the co-exclusive license. Interest income increased by 80% to approximately $555,000 for the three months ended March 31, 2000 as compared to the same period in 1999. The loss for the quarter was $3.4 million, or $0.25 per share, compared with a loss of $3.3 million, or $0.28 per share for the same period in 1999, a decrease in the loss per share of 11%. The loss during the second quarter included an unrealized foreign exchange loss of approximately $1.6 million (($0.12) per share) as a result of fluctuating foreign exchange rates on the net proceeds from the public offering which was retained in US dollars.

The Company's cash position (comprised of cash, cash equivalents and short-term investments) was $157.5 million at the end of the second quarter of 2000 compared with $31.3 million at the same date in 1999. The increase in cash was a result of the public offering completed in March 2000, offset by cash used in operations, capital expenditures and medical technology expenditures.

Condensed Statement of Operations

                                         Three Months ended March 31,
(in thousands of Canadian dollars,
 except per share data)                    2000               1999
                                             $                  $
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Revenue
Research contract and licensing           1,859                 37
Interest income                             554                309
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                                          2,413                346

Expenses
Research and development                  2,514              2,345
General and administration                1,277              1,133
Amortization and depreciation               391                209
Foreign exchange loss                     1,621                 27
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                                          5,803              3,714
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Net loss for the period                   3,390              3,368
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Loss per share                            (0.25)             (0.29)
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Weighted average number of shares        13,576             11,792

Statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "will", "estimate", "continue", "anticipates", "intends", "expects" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; technology changes; competition; changes in business strategy or development plans; the ability to attract and retain qualified personnel; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Company; and other factors referenced in the Company's filings with the Securities and Exchange Commission. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.