BIOSPHERE REPORTS 3RD QTR INCREASE IN CONSOLIDATED REVENUES.

BioSphere Medical(TM), Inc. (Nasdaq: BSMD), Rockland, Mass., a medical device company that is pioneering the use of bioengineered microspheres to treat hypervascularized tumors and vascular malformations by occluding their blood supply, has reported its financial results for the third quarter ended September 30, 2002.

Highlights

-- Consolidated revenues in the quarter increased 55% from the corresponding prior year period

-- Worldwide Embosphere(R) Microspheres revenues in the quarter increased 68% from the corresponding period of prior year

-- Net loss in the third quarter decreased to $1.16 million ($0.09 loss per share) from $3.08 million ($0.24 loss per share) in the corresponding prior year quarter

-- Company announced Paul A. Looney as its CEO and president in addition to his role as chairman of the board

-- Peter C. Sutcliffe joins the Management Team as vice president of manufacturing

-- Company prepares public relations program as its awaits word rom FDA on its submission of 510 (k) notice for Uterine Fibroid Embolization (UFE) labeling clearance

Review of Financial Results

For the third quarter of 2002, BioSphere Medical reported consolidated revenues of $3.12 million, an increase of approximately 55% compared with consolidated revenues of $2.02 million in the corresponding 2001 period. The company reported a net loss of $1.16 million, or ($0.09) per basic and diluted share, for the third quarter of 2002. This compares with a net loss of $3.08 million, or ($0.24) per basic and diluted share, for the third quarter of 2001.

For the nine-month period ended September 30, 2002, BioSphere Medical reported consolidated revenues of $9.11 million, an increase of approximately 45 percent compared with consolidated revenues of $6.28 million in the corresponding prior year period. The company reported a net loss of $5.62 million, or ($0.43) per basic and diluted share, for the nine months ended September 30, 2002. This compares with a net loss of $7.86 million, or ($0.70) per basic and diluted share, for the corresponding prior year period.

Management Comments on Progress

Commenting on the company's results, Paul A. Looney, BioSphere Medical's chairman, CEO and president stated, "Our performance this quarter emphasizes our focus on revenue growth and profitability. We continued the growth of our embolotherapy business in both the United States and Europe while also successfully launching two new products: our EmboCath (TM) Hydrophilic Infusion Catheter and Segway(TM) Hydrophilic Guidewire. During the quarter, we received and responded to the initial comments from FDA regarding our 510(k) notice for UFE labeling."

Looney continued, "We are committed to providing innovative applications in the interventional radiology market to our worldwide customers as we strive to improve patient care. We plan to focus on expanding our product portfolio into tumor treatment applications, thus leveraging our sales force infrastructure. With our current business model, we expect revenue growth to approximate 40% per annum from fiscal year 2002 to 2003 and to reach profitability by the second quarter of 2003. We anticipate that label clearance for Uterine Fibroids would create a larger opportunity for us."

About BioSphere Medical, Inc.

BioSphere Medical, Inc., based in Rockland, Massachusetts, is a medical device company focused on embolotherapy, the treatment of tumors and vascular malformations by occluding their blood supply. The company is pioneering the use of patented and proprietary bioengineered microspheres as a new class of embolics.

BioSphere Medical's lead products, Embosphere(R) Microspheres and EmboGold(TM) Microspheres, have been cleared by FDA for marketing for the treatment of hypervascularized tumors and vascular malformations. The company is currently conducting clinical trials of Embosphere(R) Microspheres for UFE in the United States under an Investigational Device Exemption (IDE) granted by the FDA. BioSphere Medical has received CE Mark approval in the European Community and approvals in Canada and Australia which allow the company to sell Embosphere(R) Microspheres for use in general embolization procedures, including UFE.

For more information, call 781-681-7925.