BioSepra Announces Acquisition of BioSphere Medical SA; Strategic Transition into Medical Device Business.

MARLBOROUGH, Mass.--(BW HealthWire)--Jan. 5, 1999--BioSepra Inc. (NASDAQ:BSEP) today announced that it has signed an agreement to acquire 51% of the outstanding equity of BioSphere Medical SA, a medical device company located in France.

BioSphere Medical will have exclusive worldwide rights to use BioSepra's patented emulsion technology and spherical biocompatible beads for blood vessel occlusion to starve hypervascularized tumors. The Company expects to complete the transaction within 90 days, subject to satisfaction of certain closing conditions. As part of the transaction, BioSepra also acquired an option to purchase the remaining 49% of BioSphere Medical within the next five years.

"This is an important milestone for BioSepra, as it marks the beginning of the Company's transition from a process chromatography only business to a therapeutic medical device business," stated Jean-Marie Vogel, president and CEO of BioSepra. "Embospheres(tm), B in more than 1000 patients to date. Results ofknown as Uterine Fibroid Embolization.

Based on the results of independent research and physician interviews, uterine fibroids are one of the most unmet medical needs with a prevalence of 5,000,000 symptomatic cases in the United States alone. Current treatment modalities range from conservative medical management -- often postponing surgical intervention -- to hysterectomy, which is frequently accompanied by complications.

BioSepra supplies its process chromatography media and other proprietary products to drug manufacturers for use in the commercial production of a wide range of biopharmaceuticals, including interferons, insulin, human growth hormone, special enzymes and vaccines. Over the p technology. The Company intends to develop further its medical device business through its announced acquis. Among the important factors that could cause actual events to differ materially from those indicated by foology for uterine fibroid embolization and othelays and cancellations of, product orders; delayny to raise additional funds, if needed, to finance the development, marketing and sale of its products; general economic conditions; as well as those risk factors detailed in the periodic reports filed by the Company with the Securities and Exchange Commission.