BioSphere Medical Strengthens Management Team; Company Appoints Heads of R&D and Sales & Business Development.

MARLBOROUGH, Mass.--(BW HealthWire)--Aug. 18, 1999--

BioSphere Medical, Inc. (OTC BB:BSMD), a medical device company that is pioneering the use of microscopic beads to treat tumors and vascular disease by inhibiting blood flow, announced today that it has appointed two senior executives to its management team. Jonathan R. McGrath, former vice president of research and development with Urologix and Schneider/Pfizer, joined the company as vice president, worldwide research and development. In addition, Robert T. Phelps, former vice president of sales with Johnson & Johnson, was named vice president, sales and business development.

BioSphere Medical's President and Chief Executive Officer John Carnuccio, who joined the company in February 1999 from Boston Scientific, stated, "We believe that the addition of Jon and Bob to our senior management team is a key step in our growth strategy, which is focused on commercializing our platform microsphere technology for the treatment of certain types of hypervascularized tumors. The strong and direct medical device experience of these two individuals will contribute greatly to our efforts to achieve key development and commercialization milestones."

In reference to his appointment, McGrath said, "I am enthused to join BioSphere Medical as it pursues opportunities for its technology in the rapidly emerging specialty of embolotherapy. Our microsphere technology is an applications-rich platform for developing medical device products. We are currently focusing on the treatment of tumors and vascular diseases. Longer term, we expect to explore other applications that we believe have significant market potential, including tissue bulking, tissue repair and drug delivery."

Commenting on his new position, Phelps said, "I am excited to join the company as we begin to prepare for the market launch of our first product, Embosphere(R) microspheres. We are positioning this product for use in a broad range of embolization therapies, including uterine fibroid embolization (UFE), an emerging procedure that will address a market that could exceed a half billion dollars in size. We believe UFE could offer a substantial improvement in the standard of treatment in this area of women's healthcare." The Company's Embosphere microspheres are currently CE Mark approved in Europe.

Jonathan McGrath has more than 20 years of management experience in medical device product development. As vice president of research and development at Urologix, Inc., McGrath directed all aspects of product development for the company's transurethral microwave delivery system. Prior to joining Urologix in 1995, McGrath was vice president of research and development for the Schneider (USA), Inc. division of Pfizer. McGrath also co-founded and served as vice president, product development and operations for Harbor Medical Devices, Inc., where he developed a novel implantable infusion port and brought it to market in less than one year. McGrath also has held product development management positions at Boston Scientific and Ladd Research Industries. He holds a B.S. in Physics from the University of Vermont.

Robert T. Phelps held several senior management positions from 1987 through 1998 at Johnson & Johnson Professional, Inc., a $500 million marketer of orthopedic implants, neurosurgical products, casting, bracing and soft goods. As vice president of sales, he directed the orthopedic implant franchise through five consecutive years of market leading, double-digit growth in revenue and market share that doubled the size of that business segment. Mr. Phelps was instrumental in the company's development and introduction of new orthopedic technologies and customer marketing programs. Most recently he was the company's vice president, group contracting, where he directed staff in managing key customers, national contract negotiations, major hospital systems marketing and leveraging Johnson & Johnson product lines. Prior to joining Johnson & Johnson Professional, Phelps was at Johnson & Johnson Products, Inc., a $500 million manufacturer of consumer and professional medical products. He holds a B.S. in Accounting, Magna Cum Laude, from Rutgers University and an MBA from Rider University.

This press release contains forward-looking statements that involve risks and uncertainties. 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(R) 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.

BioSphere Medical, Inc., based in Marlborough, Massachusetts, is a medical device company that has pioneered the use of microscopic spheres to treat tumors and vascular disease by inhibiting blood flow, a procedure known as embolization.