Biozhem Cosmeceuticals Inc. Announces Agreement with Advanced Tissue Sciences Inc.

Business Editors

SAN JUAN CAPISTRANO, Calif.--(BUSINESS WIRE)--Sept. 25, 2000

Biozhem Cosmeceuticals Inc. (OTCBB:BZHM) Monday announced an agreement with Advanced Tissue Sciences Inc. (Nasdaq:ATIS) to bring the benefits of proprietary tissue engineering technology to the retail marketplace.

This license and supply agreement gives Biozhem the exclusive right to market and sell skin care products containing Advanced Tissue Sciences' nutrient solution in the direct response market including infomercials and televised home shopping channels and also through the company's shopping mall-based skin care centers and kiosks.

"Biozhem is extremely pleased to partner with Advanced Tissue Sciences, a global leader in tissue engineering," said John Riemann, chairman of Biozhem. "We believe that Biozhem products incorporating Advanced Tissue Sciences' nutrient solution can set a new standard in the cosmeceutical marketplace.

"Beginning in early 2001, Biozhem will introduce this award-winning technology through an extensive direct response television campaign to millions of consumers who want to remedy the effects of aging on their skin."

Advanced Tissue Sciences is a tissue engineering company that develops and manufactures human-based therapeutic products for tissue repair and transplantation. In recognition of her pioneering work in the field of tissue engineering, Gail K. Naughton, Ph.D., president of Advanced Tissue Sciences, was named the 2000 National Inventor of the Year by the prestigious Intellectual Property Owners Association.

The nutrient solution, which is a by-product of Advanced Tissue Sciences' proprietary tissue engineering manufacturing process, is created by the secretion of human growth factors, collagen and other nutrients as the tissue is nourished.

The cosmeceutical application for the nutrient solution will involve its inclusion in skin care products, providing a topical replenishment of those elements which are essential to the maintenance of youthful looking skin. The normal aging process and photo damage result in the production of lesser quantities of the natural nutrients, thus creating a large target market for these products.

"We are pleased to work with Biozhem Cosmeceuticals to explore the opportunity to leverage our technology in the consumer cosmeceutical arena," stated Naughton. "We are excited about the strength of the new Biozhem management team and their experience and track record in the direct marketing of beauty products."

Biozhem Cosmeceuticals is a specialty retailer of premium quality botanically based skin care for men and women. For further information, call Biozhem investor relations at 888/215-9630.

Statements about the company's future expectations and all other statements in this news release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. The company intends that such forward-looking statements be subject to the safe harbor created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results.