Collagen Corp. to market a new implant for facial wrinkles and scars; Collagen licenses FDA cleared polymer implant for soft tissue augmentation.

PALO ALTO, Calif.--(BUSINESS WIRE)--June 4, 1996--Collagen Corp. (NASDAQ:CGEN) today announced that it will market a new implant for deep facial wrinkles and scars through an in-licensing agreement with Tissue Technologies Inc. of San Francisco, Calif.

The product received marketing clearance from the U.S. Food and Drug Administration in April 1996 under a 510(k) application and is slated to be launched in the U.S. this fall by Collagen Corp.'s Appearance Technologies Division, with subsequent launches internationally as regulatory approvals are obtained.

Developed by Tissue Technologies, this product is a tube shaped implant made from expanded polyetraflouroethylene (ePTFE) for use in soft tissue augmentation. The inventors of the product and the principals in Tissue Technologies are Drs. Cory Maas, Professor of Facial Plastic Surgery, and Robert Schindler, Chairman of the Department of Otolaryngology at the University of California at San Francisco, and Jesse Kramer, Ph.D. ePTFE, developed initially as a vascular graft, has been used to replace deteriorated blood vessels in over 2 million people, with an excellent safety record. ePTFE was later manufactured in a sheet form and approved for use in hernia repair and, subsequently, for soft-tissue augmentation.

The tube-shaped ePTFE implant is designed to allow in-growth of tissue into the ends of the tube for implant stability and to facilitate implant removal, in the event that removal becomes necessary. Generally performed in an outpatient setting, the implant is inserted into the subcutaneous space below deep furrows to augment the lost soft tissue. This material has gained increasing favor among surgeons because of its soft and natural texture and limited in-growth of fibrous tissue into the substance of the material.

"We are very excited to market this new product in partnership with Tissue Technologies," stated Gary Petersmeyer, president and chief operating officer of Collagen Corp. and general manager of the Appearance Technologies Division of Collagen Corp. "We believe this product will address the segment of patients wanting persistent soft tissue augmentation of deep wrinkles, providing an important and complementary extension of our portfolio of injectable collagen products. Marketing this product is consistent with Collagen's strategy to in-license products or acquire companies that will leverage our well established marketing franchise in this field, which includes more than 15 years of experience in working with dermatologists and plastic surgeons on a worldwide basis."

Collagen Corp. will purchase the ePTFE implant from Tissue Technologies for worldwide distribution. The agreement includes an exclusive license of technology that Tissue Technologies has obtained from the University of California.

Collagen Corp. is a technology-based company that develops, manufactures and markets biomedical devices for the treatment of defective, diseased, traumatized or aging human tissues. Tissue Technologies is engaged in the development of biocompatible implant products for soft tissue augmentation.

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. The timing of product introductions, receipt of regulatory approvals, clinical efficacy of and market demand for products, among other matters discussed in this release, may differ significantly from the discussion of such matters in the forward-looking statements.

Such differences may be based upon factors within Collagen Corp.'s control, such as strategic planning decisions by management and reallocation of internal resources, or on factors outside of Collagen Corp.'s 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 "Factors That May Affect Future Results of Operations" in Collagen's Form 10-Q filed for the quarter ended March 31, 1996.

CONTACT: Collagen Corp., Palo Alto

Lisa Morgensai, 415/856-0200

or

Edelman Public Relations

Jon Greer, 415/433-5381