Cell Bio-Systems Begins Design of E-Commerce & Network Interface.

SAN DIEGO -- Cell Bio-Systems, Inc. (Pink Sheets:CBSI), a biotechnology company positioned to manufacture and distribute patented, disposable technologies for cosmetic surgery and other living tissue procedures, has initiated the design phase of the company's network interface and e-commerce website.

Preliminary beta testing for the site is expected to take place in twelve weeks. The entire project will take approximately twenty weeks to complete, with anticipated rollout for full customer use during the fourth quarter of 2004.

"Cell Bio-Systems' new web platform will be a valuable tool for surgeons and customers alike, fully integrating and streamlining the transaction, order tracking, accounting, and inventory control processes," said Marc Pilkington, Cell Bio-Systems' president and CEO. "This is a critical step for our company, bringing us significantly closer to commencing sales operations."

Cell Bio-Systems' new, sophisticated network interface and e-commerce platform will allow customers to make purchases, as well as offer secure access to account information for billing, order shipment and tracking. The site also will link a number of the company's internal operations - such as accounting, inventory management, and production planning - together with every step of the manufacturing process.

For surgeons, the site will offer access to educational, streamed video of emerging surgical techniques, information on Cell Bio-Systems' newest product offerings, and suggestions on the application of the company's patented products. It also will allow surgeons to customize and build individualized procedural kits for a variety of Living Tissue Management(TM) procedures.

About Cell Bio-Systems

Based in San Diego, California, Cell Bio-Systems is the exclusive licensee of two patented syringe connection products that it plans to adapt as disposable devices for liposuction and other Living Tissue Management(TM) procedures. The company is developing an affordable, disposable product line that will fill this void in the cosmetic surgery and living tissue marketplace. The company's patented, groundbreaking technology will increase patient safety and enhance procedural outcomes. Most notably, Cell Bio-Systems devices can be adapted for a variety of procedures, ranging from fat transfers to biopsies to stem cell research. The company ultimately will develop a complete living tissue management system. CBSI shareholders are encouraged to visit http://www.cellbiosystems.com and to register on the "Investor Relations" page to receive ongoing CBSI news updates.

Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements'' as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. CBSI disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, and changes in our business strategies.