BioSphere Medical Appoints Robert M. Palladino Chief Financial Officer; Pioneers in Embolotherapy Enhance Senior Management.

Business Editors

MARLBOROUGH, Mass.--(BW HealthWire)--Dec. 20, 1999

BioSphere Medical, Inc. (OTCBB:BSMD), a medical device company that is pioneering the use of patented and proprietary bioengineered microspheres in embolotherapy, announced today that it has named Robert M. Palladino as the company's chief financial officer. Mr. Palladino possesses more than 18 years of finance experience with fast-growing companies positioned in the healthcare and consumer products industries.

"The addition of a seasoned executive as chief financial officer is critical in managing the company through its next stage of growth and clearly establishing BioSphere Medical as a leader in the growing embolotherapy market," said John Carnuccio, BioSphere's president and chief executive officer. "Bob has demonstrated a proven ability to develop cost-effective organizational strategies and manage revenue growth while controlling expenses."

Said Palladino, "I am excited to join a company with such impressive prospects for growth in the medical device business, and I look forward to working with BioSphere Medical's management as we capitalize on those opportunities both here and abroad. As chief financial officer, my top priorities are to help build shareholder value by successfully executing BioSphere Medical's business plan and developing a pattern of consistent revenue growth for the company."

Mr. Palladino will report to John Carnuccio, BioSphere Medical's president and chief executive officer. In his new role, Mr. Palladino will be responsible for managing the company's finance and accounting, facilities, and investor relations functions.

Most recently, Palladino served as vice president and chief financial officer at Coretek, Inc., a fiber optics manufacturer, where he was responsible for securing an additional $20 million in venture capital funds for the company. Prior to that position, he served as the vice president of finance at the C.P. Clare Corporation, a multinational electronic communications firm, where he led the company's strategic plan, acquisitions and divestiture activities. He also served as assistant treasurer at the Kendall Company, a health care manufacturer, where he was a leader in implementing the company's reorganization, IPO, secondary offering, and refinancing of senior and subordinated debt.

BioSphere Medical, Inc., based in Marlborough, Massachusetts, is a medical device company focused on embolotherapy, the treatment of tumors and vascular disease by inhibiting blood flow. The Company is pioneering the use of patented and proprietary bioengineered microspheres as a new class of embolics. BioSphere Medical has filed a U.S. FDA 510(k) application for Embosphere(R) Microspheres to treat hypervascularized tumors and arteriovenous malformations, and expects to launch the product early next year. Further, an IDE application for use of Embosphere(R) Microspheres in uterine artery embolization (UAE) has been approved, and clinical trials will begin by the end of 1999.

This news release contains forward-looking statements that involve risks and uncertainties including the Company's belief that its microsphere technology will enable it to obtain market share both domestically and in Europe and, as a result, generate enhanced shareholder value. Among the important factors that could cause actual events to differ materially from those indicated by forward-looking statements in this release are the failure of the Company to achieve or maintain necessary regulatory approvals, either in the United States or internationally, with respect to the manufacture and sale of its products, to successfully develop and commercialize the Embosphere technology for uterine fibroid embolization and other applications, to provide patent and other proprietary protection for the Company's products and to garner the necessary U.S. regulatory approvals for such technology; the absence of, or delays and cancellations of, product orders; the delay in the introduction of new products; competitive pressures; the inability of the Company to raise additional funds, if needed, to finance the development, marketing, and sales 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.