Cohesion Technologies Presents Compelling Preclinical Data On Its Surgical Adhesive and Adhesion Prevention Materials.

Business Editors

PALO ALTO, Calif.--(BW HealthWire)--June 28, 2000

--New Materials Address $1.5 Billion Market--

Cohesion Technologies, Inc. (NASDAQ NM: CSON)--a leader in developing and commercializing proprietary surgical products including bioresorbable hemostats, sealants, adhesives and adhesion prevention barriers--presented compelling preclinical data on its surgical adhesive and its adhesion prevention materials at the MDI Biomaterials Conference this week in San Francisco.

Frank DeLustro, Ph.D., Cohesion's president and chief operating officer, informed conference attendees that Cohesion's preclinical research demonstrates feasibility in developing a very strong surgical adhesive that is highly biocompatible. Surgical adhesives allow the connecting of tissues, organs or structures during surgery. Cohesion's proprietary technology results in self-polymerizing, liquid materials that glue in minutes, are pliable and elastic, and demonstrate strength comparable to or better than cyanoacrylates. While cyanoacrylates are very strong when used on the skin surface, they form a rigid plastic that can cause damage to soft tissue that is constantly in motion, such as most of the body's internal organs.

Cohesion's adhesive materials are being designed to address issues with current liquid adhesives and are expected to eliminate or reduce the need for sutures and/or staples--currently a global market in excess of $1 billion--for both open and minimally invasive surgeries. The Company believes that human clinical trials with its adhesive materials could begin within the next two to three years. The global market potential for surgical adhesives has been estimated by independent sources to be in excess of $500 million over the next several years.

Regarding the Company's work in adhesion prevention, Dr. DeLustro said, "Recent preclinical data from our synthetic PEG (polyethylene glycol) technology has shown excellent promise in preventing or significantly reducing adhesions in cardiac, uterine and bowel models. These successes include the bowel adhesion reformation model in which the prevention of secondary scar formation is very challenging."

Post-operative adhesions are unwanted scars that form between tissue planes following surgery. These adhesions can be a significant problem and can result in severe pain and/or organ obstructions that require additional surgeries or in severe cases may cause death.

The Company's adhesion prevention materials are self-polymerizing, sprayable, resorbable and synthetic. These materials are being designed for minimally invasive and open surgical procedures.

Dr. DeLustro noted that the annual global market potential for adhesion prevention products has been estimated by independent sources to be in excess of $1 billion.

"Although the adhesion prevention marketplace has several competitors, early products on the market have been less than optimal. We are encouraged by initial preclinical data showing that Cohesion's materials are easy to apply, adhere effectively to the affected tissue and prevent adhesions, which are significant competitive advantages," he added.

Subject to generating additional preclinical data and after receiving an investigational device exemption (IDE) from the Food and Drug Administration (FDA), the Company intends to begin global pivotal studies with its adhesion prevention product in 2001.

"We are proud that in only four years we have brought a surgical hemostatic product and a surgical sealant product to the market. We will continue to build on our preclinical data to address the adhesive and adhesion prevention markets and look forward to bringing new products to the marketplace," Dr. DeLustro concluded.

For more information on Cohesion Technologies, please visit the Company's Web site at www.cohesiontech.com.

This press release contains forward-looking statements, the accuracy of which is subject to risks and uncertainties including the accuracy of market reports, the timing and results of additional preclinical testing, the timing and results of clinical studies, timing of product introductions, the success of scaling up product production, performance of third party vendors or representatives, receipt of regulatory investigational device exemptions (IDE), the effectiveness and success of its products and materials, receipt of regulatory approvals, clinical efficacy of and market demand for products and potential unfavorable publicity regarding Cohesion Technologies or its products, 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 the Company's control, such as strategic planning decisions by management and reallocation of internal resources, or on factors outside the Company's control, such as scientific advances by third parties, introduction of competitive products and delays by regulatory authorities. Please see the Company's filings with the Securities and Exchange Commission including, without limitation, the Company's most recent Form 10-K and Form 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.