Collagen Sets Record Date for Cohesion Spin-Off.

PALO ALTO, Calif.--(BW HealthWire)-- August 3, 1998--Collagen Corporation (NASDAQ: CGEN) today announced that it has set a record date of August 12, 1998 for determining stockholders of Collagen Corporation entitled to receive a distribution, on or about August 18, 1998, of one share of Cohesion Technologies common stock for every one share of Collagen Corporation common stock held by Collagen Corporation stockholders on the record date.

The distribution and spin-off of Cohesion Technologies are subject to various conditions being settled or waived, including approval of the distribution by Collagen Corporation stockholders. Collagen Corporation stockholders are being asked to vote on the spin-off at a special stockholder meeting on August 12, 1998. This transaction is expected to result in the distribution of 100% of the outstanding shares of Cohesion Technologies to Collagen Corporation stockholders. Cohesion Technologies has applied for quotation on the NASDAQ National Market under the ticker symbol CSON.

Upon completion of the spin-off, Collagen Corporation is planning to change its name to Collagen Aesthetics, Incorporated ("CAI"), to reflect the Company's focus on serving the aesthetic and reconstructive market place. CAI will also manufacture Contigen(R) Bard collagen implant, a treatment for stress urinary incontinence. CAI's ticker symbol will remain CGEN on the NASDAQ National Market.

"This is a time of fundamental change for Collagen Corporation," stated Gary S. Petersmeyer, president and chief executive officer of Collagen. "Cohesion Technologies is preparing to set off on its own with solid product candidates, including CoStatis(tm) Surgical Hemostat and CoSeal(tm) Surgical Sealant, that are expected to address a large and growing surgical need for cardiothoracic and cardiovascular surgeons. Collagen Aesthetics has evolved into a streamlined company focused on continued growth and profitability with a portfolio of products, including Zyderm(R) and Zyplast(R) injectable collagen, Hylaform(R) viscoelastic gel, SoftForm(R) facial implant and Refinity(tm) skin solutions, targeted at the aging "baby boomer" population which is increasingly interested in looking and feeling its best. We remain confident that the separate, independent structures of Cohesion Technologies and Collagen Aesthetics will provide added focus and efficiencies to the work at each company."

Collagen Corporation designs, develops, manufactures and markets on a

worldwide basis high-quality biocompatible products for the treatment of defective, diseased, traumatized or aging human tissues with the goal of superior physician and patient satisfaction for its products. Collagen Corporation's press releases can be accessed on the Internet at http://www.businesswire.com/cnn/cgen.htm

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. As a result, the accuracy of statements made herein 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 Collagen Corporation and/or Cohesion Technologies or their respective products, and possible reversal of sales trends, among other matters discussed in this release. Actual events and results may differ significantly from the discussion of such matters in the forward-looking statements. Such differences may be based on factors within Collagen Corporation's and Cohesion Technologies' control, such as strategic planning decisions by management and reallocation of internal resources, or upon factors outside of Collagen Corporation's and 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 in Collagen's 1998 Proxy Statement for Special Meeting of Stockholders, under the heading "Factors That May Affect Future Results of Operations" in Collagen's Form 10-Q filed for the quarter ended March 31, 1998 and those factors set forth under the heading "Risk Factors" in Cohesion Technologies' Registration Statement on Form 10.

    CONTACT: Company Contact:      Investor Relations:
              Lisa Morgensai        Bruce Voss ([e-mail])
              Collagen Corporation  Lippert/Heilshorn & Associates, Inc.
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