Inamed Demonstrates Execution of Growth Plan; BioEnterics Corp. Initiates Shipments of the Lap-Band System in the United States.

Business Editors & Health/Medical Writers

SANTA BARBARA, Calif.--(BUSINESS WIRE)--July 19, 2001

McGhan and DTA have Received Registration Approval for Silicone

Gel Breast Implants in Australia; FDA Has Granted Approval for

Production At Inamed's Los Carneros Plant

Inamed Corp. (Nasdaq:IMDC) today announced three significant business developments that further position the company for continued growth: BioEnterics Corp. initiated shipments of the Lap-Band(R) System in the United States; McGhan has received registration approval for silicone gel breast implants in Australia; and the FDA has granted approval for production at the Los Carneros plant.

"This is an extremely exciting time for Inamed," said Richard G. Babbitt, Inamed's chairman and chief executive officer. "We are well-positioned to sustain our global franchise position in breast augmentation/reconstruction devices and dermal fillers, and expect our new obesity product -- the Lap-Band(R) System -- to have a significant impact to 2002 earnings. We will continue to focus on the growth of our strong and promising product portfolio while controlling costs, in order to increase shareholder value."

Inamed's subsidiary, BioEnterics Corp., has begun shipping the Lap-Band(R) System Adjustable Gastric Banding System to United States hospitals.

Babbitt said, "BioEnterics has supplied the FDA with the final product labeling as required by the premarket approval (PMA) letter of June 5, 2001. The company has quickly and efficiently prepared for introduction of this innovative product, developing both patient and surgeon information as well as training materials."

The Lap-Band(R) System is a minimally invasive approach to obesity surgery. The band is inflatable and can be adjusted after surgery to customize patient treatment. The procedure is reversible and, unlike gastric bypass procedures, does not require cutting or stapling of the stomach, or gastrointestinal re-routing to bypass normal digestion.

Patient benefits include reduced surgical trauma, complications, pain, scarring, and shorter hospitalization and recovery time compared with more invasive obesity surgeries. After surgery, patients can achieve significant and sustained weight loss, which has been demonstrated to improve health and quality of life.

Ellen Duke, president and CEO of BioEnterics, noted: "This concept has been under development and studied in the United States for 15 years. Internationally, where the Lap-Band(R) System has been used extensively since 1994, its positive impact on health and quality of life has been impressive and well documented. This experience has demonstrated the importance of the qualification and training of surgical centers, which is now required in the U.S. by the condition of FDA approval and the approved labeling."

Obesity is the second-leading cause of preventable death in the United States, and an estimated 11 million American adults are severely obese. U.S. health care costs for treating obese adults have reached $238 billion, according to a 1999 study by the Lewin Group.(a)

McGhan Medical International, a subsidiary of Inamed, and Device Technologies Australia, distributor of McGhan's breast implants, have received Australian Therapeutic Goods Administration (TGA) registration approval of McGhan's silicone gel breast implants. The company is the only approved source in Australia for silicone breast implants.

The registration application, which was submitted to the Australian regulators in 1997, included in-depth data evaluating design, materials and testing, manufacture and quality control, biocompatibility and human clinical experience.

McGhan's saline breast implants have previously received registration in Australia.

In addition, the FDA has reviewed McGhan Medical's submission for the Los Carneros plant in California and granted approval to commence production of breast implants at the new facility. The company expects production to begin during the third quarter of 2001. The new facility will allow Inamed to increase its manufacturing capacity while also increasing manufacturing efficiency.

As previously announced, Nicholas Teti, formerly president and CEO of DuPont Pharmaceuticals Co., will join Inamed as president and CEO, and an Inamed board member, effective Aug. 1, 2001. Babbitt will remain chairman of the board.

Babbitt continued, "We have outstanding prospects for continued growth, and under the leadership of Nick, who is very excited about these developments, and the rest of the management team, we will continue to take full advantage of the company's superb platform and increase shareholder value."

About Inamed Corp.

Inamed is a global surgical and medical device company engaged in the development, manufacturing and marketing of products for the plastic and reconstructive surgery, aesthetic medicine and obesity markets. Inamed sells a variety of lifestyle products used to make people look younger and more attractive, including breast implants for cosmetic augmentation and collagen-based facial implants to correct facial wrinkles and to improve lip definition.

Inamed also sells products that address women's health issues, including breast implants for reconstructive surgery following a mastectomy, and devices that treat severe obesity and urinary incontinence.

Note (a): Lewin Group, Costs of Obesity, American Obesity Association Obesity Conference, September 1999

Forward Looking Statements

This release contains, in addition to historical information, forward-looking statements. Such statements are based on management's current estimates and expectations and are subject to a number of uncertainties and risks that could cause actual results to differ or differ materially from those described in the forward-looking statements. For a full discussion of the risks and uncertainties, refer to recent SEC filings made by the company including, without limitation, the company's annual report on SEC form 10-K for fiscal 2000.