Curis Announces Completion of $14 Million BMP-7 Royalty Buyout by Stryker Corporation; Deal Strengthens Curis Financially and Strategically.

Business/Technology Editors & Health/Medical Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 1, 2002

Curis, Inc. (NASDAQ: CRIS) announced today the completion of a transaction under the terms of which Stryker Corporation will purchase the right to eliminate its future BMP-7 (OP-1) royalty obligations for $14 million in cash. In addition to obtaining immediate receipt of its future BMP-7 royalty stream, the agreement allows Curis to reduce future BMP-7 royalties owed Stryker for products in therapeutic indications other than orthopedics and dental.

"We are very pleased to complete this transaction with Stryker, which provides several significant benefits to Curis," said Daniel R. Passeri, President and Chief Executive Officer of Curis. "We obtain immediate access to cash, thus allowing us an extended runway for development of Curis product initiatives. In addition, the royalty reduction provides Curis added flexibility to develop its BMP-7 programs in kidney disease and other non-orthopedic fields. In sum, I believe this transaction enhances prospective returns to Curis and its shareholders by fostering our ability to pursue BMP-7 programs in these fields while improving our liquidity position."

About Curis, Inc.

Curis, Inc. is generating therapies that regulate the pathways used by the body to maintain and restore health. The company focuses on signaling pathways that govern the proliferation and differentiation of cells. These same pathways control maintenance, repair, and regeneration of tissues and organs from infancy through old age. This approach has created an approved product for bone regeneration and enables Curis to build a portfolio of product candidates in neurology, kidney disease, and cancer. For more information, please visit the Curis web site at www.curis.com.

About Stryker Corporation

Stryker Corporation develops, manufactures and markets specialty surgical and medical products, including orthopedic reconstructive, trauma, spinal and craniomaxillofacial implants, the bone growth factor osteogenic protein-1, powered surgical instruments, endoscopic systems, patient care and handling equipment for the global market, and provides outpatient physical therapy services in the United States.

This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements address a variety of subjects, including, for example, strategic collaboration efforts, product development efforts and prospective returns. Statements in this press release that state Curis' or management's intentions, plans, expectations or predictions of future events are forward-looking statements. The matters discussed in this press release also involve risks and uncertainties that may cause Curis' actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: Curis' need for partnerships to move forward its cell therapy programs, the early stage of product development of Curis' retained programs, uncertainties related to clinical trials, uncertainties related to Curis' ability to raise additional capital, changes in or an inability to execute Curis' realigned business strategy and other risk factors described from time to time in Curis' periodic reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, Curis' Annual Report on Form 10-K for the year ended December 31, 2001 filed on March 29, 2002. Curis cannot guarantee any future results, levels of activity, performance, or achievements. Moreover, neither Curis nor anyone else assumes responsibility for the accuracy and completeness of any forward-looking statements. Curis undertakes no obligation to update any of the forward-looking statements after the date of this press release.