SAN DIEGO, Feb. 25 /PRNewswire-FirstCall/ --
Protein Polymer Technologies, Inc. (OTC Bulletin Board: PPTI), reports today
its financial results for the fourth quarter and the year ended December 31,
2002.  For the quarter, the Company had a net loss applicable to common
shareholders of $168,000 ($0.01 a share), versus a net loss of $863,000
($0.04 a share) for the comparable period a year ago.  For the year, PPTI had
a net loss applicable to common shareholders of $1,294,000 ($0.05 a share),
versus a net loss of $3,424,000 ($0.16 a share) for the comparable period a
year ago.  The net loss, and the net loss per share amounts include
accumulated and distributed dividends related to the Company's preferred
stock.
    Contract and licensing revenue, and product and interest income totaled
$886,000 for the fourth quarter and $3,019,000 for the twelve month period
ended December 31, 2002, compared to $241,000 and $830,000 respectively for
the same periods last year.  The increased contract and licensing revenue
primarily represents increased research and development payments from Spine
Wave, Inc., formed in April 2001 to develop and commercialize a spinal disc
repair product for the treatment of lower back pain based on technology PPTI
licensed to Spine Wave; a milestone benchmark payment from Genencor
International for the initiation of a product development project by Genencor
using PPTI technology licensed to Genencor; and the amortized portion of an
up-front payment of $1 million from Femcare Ltd. of Nottingham England,
associated with the grant of a license to commercialize PPTI's product for the
treatment of female stress urinary incontinence in Europe and Australia.  The
$1 million Femcare license fee has been recognized as income over a three-year
period that ended December 31, 2002.
    Operating expenses for the quarter were $984,000, as compared to
$1,034,000 for the same period in 2001.  Operating expenses for the year were
$4,035,000 as compared to $3,977,000 for the same period in 2001.  In general,
operating expenses for the past two years have remained low due primarily to
reductions in personnel and expenditures implemented during 1999.  To the
extent that resources become available, expenses are expected to rise in
subsequent quarters due to increased expenditures for expanded human clinical
testing and patient follow-up of the Company's injectable urethral bulking
agent for the treatment of female stress urinary incontinence, and of the
Company's injectable hydrogel for the treatment of dermal contour defects
(scars, wrinkles, and lines).  However, there can be no assurance that
additional resources will become available.
    PPTI's cash balance as of December 31, 2002 was $734,000, as compared to
$234,000 as of December 31, 2001.  In January and August 2002, the Company
received $1,673,000 in additional capital from the exercise of outstanding
Series G common stock warrants.  In combination with anticipated additional
contract and license payments, and revenue projected for the delivery of
clinical testing materials, the Company's cash is expected to meet the
Company's anticipated capital requirements through April 2003.  If additional
capital is not obtained in the near future, the Company will be required to
reduce the use of cash through layoffs and other cost reduction steps.

    Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing bioactive products to improve medical and surgical outcomes.
From its inception in 1988, PPTI has been a pioneer in protein design and
synthesis, developing an extensive portfolio of proprietary biomaterials.
These genetically engineered biomaterials are high molecular weight proteins,
processed into products with physical and biological characteristics tailored
to specific clinical performance requirements.  Targeted products include
urethral bulking agents for the treatment of stress urinary incontinence,
dermal augmentation products for cosmetic and reconstructive surgery, surgical
adhesives and sealants, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery.  To date, PPTI has been issued twenty-four
U.S. Patents on its core technology with corresponding issued and pending
patents in key international markets.

    This press release contains forward-looking statements that are based on
management's views and expectations.  Actual results could differ materially
from those expressed here; further, the Company is not obligated to comment
specifically on those differences.  Risks associated with the Company's
activities include raising adequate capital to continue operations scientific
and product development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding, regulatory testing
and approvals, and manufacturing scale up.  The reader is encouraged to refer
to the Company's 2001 Annual Report Form 10-KSB and subsequent three 2002
Quarterly Reports Form 10QSB, and other recent filings with the Securities and
Exchange Commission, copies of which are available from the Company, to
further ascertain the risks associated with the above statements.


                        Protein Polymer Technologies, Inc.
                          Condensed Financial Statements
                                   (unaudited)


                           Three months ended        Twelve months ended
                              December 31,              December 31,
                            2002          2001         2002          2001
     SUMMARY OF OPERATIONS

     Contract revenue     $633,487      $233,334   $2,760,571      $783,334
     Interest income         2,115         1,921        6,810        40,778
     Product and other
      income               250,000         5,912      251,500         5,950
      Total revenues       885,602       241,167    3,018,881       830,062

     Total expenses        984,018     1,034,019    4,035,038     3,976,891

     Net loss             $(98,416)    $(792,852) $(1,016,157)  $(3,146,829)

     Undeclared and/or
      paid dividends on
      Preferred Stock       69,980        69,980      277,639       277,639

     Net loss applicable
      to common
      shareholders       $(168,396)    $(862,832) $(1,293,796)  $(3,424,468)

     Net loss per common
      share - basic and
      diluted               $(0.01)       $(0.04)      $(0.05)       $(0.16)

     Shares used in
      computing net loss
      per share - basic
      and diluted       29,724,110    21,740,650   27,659,838    20,964,233


                                                    As of          As of
                                                Dec. 31, 2002  Dec. 31, 2001
     BALANCE SHEET INFORMATION

     Cash and cash equivalents                      $734,000       $234,000
     Working capital                                 189,000       (585,000)
     Total assets                                    875,000        527,000
     Total capital invested                       44,182,000     42,492,000
     Accumulated deficit                        $(43,907,000)  $(42,890,000)

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