Cohesion Technologies Initiates Stock Repurchase Program.

PALO ALTO, Calif.--(BUSINESS WIRE)--Sept. 9, 1998--Cohesion Technologies, Inc. (NASDAQ:CSON) today announced that the Company's Board of Directors has approved a stock repurchase program and has authorized the Company to repurchase up to 1,000,000 shares of its common stock.

The purchases may be made on the open market from time to time depending on market conditions and other factors. The repurchased shares will be held as treasury stock.

"The Board of Directors approved the stock repurchase program due to the large disparity between the perceived value of the Company and the prices at which the stock has recently traded. In addition, the Board believes a stock repurchase program reflects their continued confidence in the Company's prospects for the future and benefits long term stockholders," stated David Foster, director and chief executive officer of Cohesion Technologies. "Several Directors and Officers of Cohesion Technologies have been purchasing stock since Cohesion became public in August. We believe our own actions should be consistent with how we invest Company assets on behalf of stockholders."

As of August 31, 1998, Cohesion held approximately 900,000 shares of Boston Scientific common stock (NYSE:BSX), among other securities, and about $6 million of cash. Approximately 88% of the Boston Scientific holdings have been hedged to protect against significant downward movements in the price of the stock.

Cohesion Technologies is developing products for the $1.3 billion worldwide surgical hemostasis and sealant markets. The Company's lead product is CoStasis(TM) Surgical Hemostat ("CoStasis hemostat") for the treatment of diffuse bleeding. Patient enrollment in a pivotal European clinical study with CoStasis hemostat for bleeding in cardiothoracic surgery has been completed, and recently Cohesion Technologies filed a design dossier in preparation for obtaining a CE Mark for CoStasis hemostat, which would allow for market entry in Europe. CoStasis hemostat is in a pivotal clinical study in the U.S. for bleeding in hepatic, orthopedic, cardiothoracic and general surgical procedures.

Cohesion Technologies' press releases can be accessed on the Internet at http://www.businesswire.com/cnn/cson.htm.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties including the timing of product introductions, receipt of regulatory approvals, clinical efficacy of and market demand for products, product development cycles, results of clinical studies, development and rate of growth of new markets, potential unfavorable publicity regarding Cohesion Technologies or its products and possible reversal of sales trends, among other matters discussed in this release. Actual results are subject to risks and uncertainties, and actual events and results may differ significantly from the discussion of such matters in the forward-looking statements. Such differences may be based upon factors within Cohesion Technologies control, such as strategic planning decisions by management and reallocation of internal resources, or on factors outside of Cohesion Technologies' control, such as scientific advances by third parties, introduction of competitive products and delays by regulatory authorities, as well as those factors set forth under the heading "Risk Factors" in Cohesion Technologies' Registration Statement on Form 10.

    CONTACT: Cohesion Technologies
              Lisa Morgensai
              650/856-0200
                   or
              Lippert/Heilshorn & Associates, Inc
              Bruce Voss
              310/575-4848
              [e-mail]
              www.lhai.com