SAN LUIS OBISPO, California - June 11, 2004 - FzioMed, Inc. today announced that it has completed biocompatibility studies of an Oxiplex gel for use in soft tissue augmentation. Oxiplex is a synthetic, bioabsorbable material that can be formulated for use in a wide variety of surgical applications.

FzioMed's tissue augmentation program is focused on developing Oxiplex products for use in the correction of facial wrinkles, scars and other soft tissue defects. In FzioMed studies, Oxiplex gel was found to be biocompatible and easy to use as an intradermal, injectable filler. Oxiplex is not derived from animals or bacteria, a drawback often experienced with dermal fillers derived from collagen or hyaluronic acid. FzioMed plans to evaluate its dermal filler clinically in the near future.

"The use of Oxiplex as a dermal filler is an exciting new direction for FzioMed's polymer technology," said Richard Berg, Ph.D., Vice President of Research and Development for FzioMed. "Oxiplex is an ideal material for tissue augmentation. It is biocompatible, easy to store and use, and substantially less expensive to produce than the typical hyaluronic acid- or collagen-based dermal fillers. These factors are critical to success in the competitive aesthetic surgery market."

FzioMed is a privately held medical company engaged in the development and commercialization of synthetic, absorbable biomaterials based on the company's patented Oxiplex technology. FzioMed is developing products for the prevention of post-surgical adhesions, for tissue healing and augmentation, and for the delivery of drugs. Oxiplex is an innovative polymer technology with potential uses across a wide variety of specialties including orthopedics, gynecology, general surgery, cardiac, neurosurgery and aesthetic surgery. FzioMed products include Oxiplex/SP, the leading adhesion barrier for spine surgery, currently marketed outside of the United States. Other FzioMed products are in various stages of development and commercialization, and are directed towards high growth markets in the rapidly growing field of biosurgery materials.

FzioMed® and Oxiplex® are registered trademarks of FzioMed, Inc.

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