Angiotech Announces Results for Third Quarter Ended June 30, 2000.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 14, 2000

Angiotech (Nasdaq:ANPI) (TSE:ANP.)

The third quarter of fiscal 2000 saw the Company break new ground through the expansion of our paclitaxel surgical implant technology into the field of ophthalmic surgery.

The implant technology, first developed for the management of restenosis following vascular surgery (being developed in partnership with C.R. Bard), was exclusively licensed on May 10 to ophthalmic market leader Alcon Laboratories Inc. for the delivery of paclitaxel to treat proliferative ophthalmic conditions.

The alliance with Alcon provided an upfront license fee as well as milestone payments and royalties, while Alcon will assume all preclinical development and clinical study costs. Alcon also received a first right to negotiate a license for additional ophthalmic and optic applications.

The most immediate application of the paclitaxel implant will be for patients undergoing glaucoma filtration surgery. In glaucoma, the circulation of aqueous humor (the fluid inside the eye) becomes blocked and causes an increase in pressure that can damage the retina and lead to blindness. While many patients are effectively managed with medicated eyedrops, over 100,000 patients per year will require surgery to treat their condition. To help drain the excess fluid, a surgical "window" is cut near the surface of the eye, however, this opening is prone to closure due to scarring. Together with Alcon, we are developing a paclitaxel implant to be placed during surgery to keep window open and maintain normal circulation of aqueous humor.

Given paclitaxel's ability to inhibit scar tissue growth and angiogenesis (new blood vessel growth), which are present in numerous other common eye conditions, we view this as an opportunity for Angiotech to enter into new fields. It is hoped that this alliance with Alcon could lead to a series of ophthalmic products.

Also of significance this quarter is the appointment of Jeanne M. Bertonis as Angiotech's Vice President, Corporate Development. Jeanne joins Angiotech from Genzyme Corporation where she served as Senior Director, Corporate Development. At Genzyme, Jeanne spearheaded strategic projects and acquisitions for Genzyme Corporate and several core groups, focusing on the surgical and pharmaceutical divisions. Prior to Genzyme, Ms. Bertonis held the position of Senior Manager, Business Development with Guidant Corporation.

Jeanne is an extraordinary addition to the Angiotech management team. She is one of the only senior business development executives who has worked in the fields of biotechnology, surgical implants and medical devices - Angiotech's core areas of expertise. Given the Company's desire to expand its business following our recent financing, the appointment of Jeanne is timely to our continued forward progress.

On the paclitaxel-coated stent front, Cook continues to enrol patients in clinical studies in both Europe and Asia, and at last count, had implanted over 200 coronary stents. Boston Scientific is scheduled to begin similar coronary stent studies in the fall and both companies are planning to initiate peripheral stent studies in the coming months.

Thank you again for your support and we look forward to continued progress and success for the remainder of the year.

Best regards, William L. Hunter, MD, MSc, Chairman and CEO Donald E. Longenecker, PhD, President and COO

A conference call on Angiotech's Q3 Financials will be held on Monday, August 14, 2000 at 1:30 PM PST. A recording of the call will be available until August 21, 2000 by calling [phone] and entering Access Code 15852187.

Angiotech Pharmaceuticals, Inc. has issued its report to shareholders including financial results for the third quarter ended June 30, 2000. All amounts reported are in Canadian dollars.

Total revenues increased to approximately $2.59 million for the three months ended June 30, 2000 from approximately $0.27 million for the same period in 1999. The increase in research contract and licensing revenue was due to the receipt of an initial license payment, from Alcon Universal Ltd., for the licensing of the use of a polymeric carrier as a therapeutic agent in proliferative ophthalmic conditions. Interest income increased by approximately $1.98 million to approximately $2.21 million for the three months ended June 30, 2000 from approximately $0.23 million for the same period in 1999. The net income for the quarter was approximately $1 million, or $0.07 per share, compared with a net loss of approximately $3.3 million, or ($0.28) per share for the same period in 1999. The net income during the third quarter ended June 30, 2000 included an unrealized and realized foreign exchange gain of approximately $2.35 million ($0.15 per share) as a result of fluctuating foreign exchange rates on the net proceeds from the March 2000 public offering which was retained in US dollars.

The Company's cash position (comprised of cash, cash equivalents and short-term investments) was $158.1 million at the end of the third quarter of 2000 compared with $17.9 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
(in thousands of Canadian dollars, except per share data)

                                    Three Months ended June 30,
                                            2000     1999
                                             $        $
Revenue

Research contract and licensing              381       43
Interest income                            2,211      229
                                         ----------------
                                           2,592      272

Expenses

Research and development                   2,300    2,409
General and administration                 1,118      882
Amortization and depreciation                527      231
Foreign exchange loss (gain)              (2,351)      28
                                         ----------------
                                           1,594    3,550
                                         ----------------
Net income (loss) for the period             998   (3,278)
                                         ----------------
Income (Loss) per share                     0.07    (0.28)
                                         ----------------
Weighted average number of shares         15,235   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.