Gyrus ENT and Genzyme Biosurgery Complete Broad Distribution Agreement.

Business Editors & Health/Medical Writers

MEMPHIS, Tenn.--(BW HealthWire)--Sept. 11, 2001

Gyrus ENT LLC (formerly Smith and Nephew ENT and Somnus(R)), and Genzyme Biosurgery (Nasdaq: GZBX), a division of Genzyme Corporation based in Cambridge, Mass., today announced that they have entered into an exclusive five-year agreement for the distribution of several of Genzyme's Sepra(TM) products for use in ear, nose and throat procedures.

Under terms of the agreement, Gyrus ENT will market and sell Sepragel(R) Sinus Bioresorbable Nasal Packing and Sinus Stent and Seprapack(TM) Bioresorbable Nasal Packing and Sinus Stent. The two products are formulations of hyaluronan (HA or hyaluronic acid) and are intended for use as postoperative nasal and sinus packing to separate traumatized tissues, control minimal bleeding and enhance patient care in the more than 360,000 functional endoscopic sinus surgery (FESS) procedures performed worldwide on an annual basis.

Sepragel(R) Sinus is a viscoelastic gel form of hyaluronan that gives the surgeon the flexibility to pack hard-to-reach areas. The clear nature of the gel is designed to enable the surgeon to better visualize the surgical site during postoperative exams.

Seprapack(TM) is a composite of chemically modified HA and CMC (carboxymethylcellulose) formed into a compressed wafer. The surgeon wets the wafer and applies it allowing it to gently expand and separate the affected tissue within the surgical site.

Sepragel(R) Sinus and Seprapack(TM) are naturally resorbed by the surrounding tissue within 7 - 14 days, requiring no painful removal of packing, a major objection with traditional packing methods. Since HA is a naturally occurring substance found in the extracellular matrix of human tissue it is highly biocompatible.

"Hyaluronan serves well as an internal wound dressing where a moist healing environment is desirable. We have used similar formulations of HA to develop products for preventing post-surgical adhesions following abdominal and gynecologic surgical procedures. Perhaps the biggest advantage of sinus packs and dressings made from hyaluronan is their ability to be resorbed and leave the surgical site through normal outflow passages," said Jim Burns, SVP Biomaterials Research for Genzyme.

"This alliance is the first realization of our mission to include complementary biological materials within our product portfolio enabling less traumatic management of tissues and improving clinical outcomes," said Mark Goble, Group Chief Executive for Gyrus PLC.

The agreement between Gyrus and Genzyme also extends to other potential ENT applications of hyaluronan. The companies estimate near term market potential for products such as the two Sepra(TM) products at $4MM to $6MM US annually.

"We are very pleased to begin our relationship with Gyrus ENT," said Duke Collier, President, Genzyme Biosurgery. "Our company has one of the strongest surgical biomaterial product development capabilities in the world. It is integral to our strategy to work with leading companies in specialized surgical niches, like Gyrus ENT, to develop, launch and sell a broad range of such products."

About Gyrus ENT

Gyrus ENT, a world leader in ENT and Head and Neck Surgery, is a Division of Gyrus Group PLC and was formed following the acquisition and integration of Smith + Nephew ENT and Somnus Medical Technologies Inc. Gyrus Group PLC is a UK medical device company listed on the main market of the London Stock Exchange and is focused on less traumatic solutions to tissue management during surgical procedures. For more information, visit the company's web sites at http://www.gyrusplc.com or http://www.gyrus-ent.com.

About Genzyme Biosurgery

Genzyme Biosurgery is a leader in the emerging market for sophisticated biotechnology products used to improve or replace surgery. Its portfolio of products is concentrated on two rapidly growing markets: orthopaedics and heart disease. Genzyme Biosurgery is developing a pipeline of biomaterials and biotherapeutics for these markets, as well as a group of biomaterials products designed to ameliorate the consequences of surgery. Genzyme Biosurgery is a division of Genzyme Corp.