FzioMed, Inc. Announces Agreement with Medtronic Sofamor Danek

FzioMed to Supply Adhesion Prevention Product to Spine Industry Leader

SAN LUIS OBISPO, Calif. – Aug. 26, 2002 – FzioMed, Inc., a leading developer of absorbable biosurgery products, announced today it has signed a distribution agreement with Medtronic Sofamor Danek, headquartered in Memphis, Tenn.

FzioMed is engaged in the development and manufacture of advanced, absorbable biosurgery products. Medtronic Sofamor Danek develops and manufactures products that treat a variety of disorders of the cranium and spine.

Under the agreement, FzioMed will manufacture and supply its Adhesion Prevention Gel to Medtronic Sofamor Danek for sale in selected countries outside the United States. Medtronic Sofamor Danek will distribute the FzioMed product, under private label, to orthopedic surgeons and neurosurgeons for use in spine surgical procedures such as laminectomy, laminotomy and discectomy. FzioMed will provide sales support and training assistance.

FzioMed’s Adhesion Prevention Gel is a bioabsorbable gel that is applied during spinal surgery to reduce post-surgical epidural adhesions. Post-surgical adhesions are a leading complication of many surgical procedures. FzioMed is also developing adhesion prevention products for pelvic/abdominal surgery, cardiac surgery, tendon surgery and ENT surgery.

“We are extremely pleased to have signed this agreement with Medtronic Sofamor Danek, a worldwide leader in the spinal products market,” said Ronald Haynes, President and CEO of FzioMed. “Its extensive distribution network will expand the availability of FzioMed’s Adhesion Prevention Gel outside the United States.”

FzioMed is a privately held biomedical company engaged in the development and commercialization of advanced, absorbable biosurgery products based on the company’s patented technology. FzioMed’s technology is an innovative polymer that is formulated for a variety of targeted medical indications and markets. Products in development include those for the prevention of post-surgical adhesions, hemostasis during surgery, osteoarthritis and drug delivery. FzioMed products are at various stages of clinical and pre-clinical development in the United States and are directed towards high-growth markets in the rapidly growing field of biosurgery products.

Oxiplex is a registered trademark of FzioMed, Inc.