SAN DIEGO, March 27 /PRNewswire-FirstCall/ -- Protein Polymer
Technologies, Inc. (OTC Bulletin Board: PPTI), reports today that a small
group of institutional and accredited investors committed $3,005,000 for the
purchase of an aggregate of 30,050 shares of the Company's Series I Preferred
Stock together with warrants for the purchase of an aggregate of approximately
2,185,455 shares of common stock. The Series I Preferred Stock was priced at
$100 per share.
    Each share of Series I Preferred Stock is convertible at any time at the
election of the holder into approximately 182 shares of common stock at a
conversion price of $0.55 per share, subject to certain antidilution
adjustments.  Each share of Series I Preferred Stock also received warrants to
purchase common stock. Two warrants are exercisable at any time, each for
approximately 27 shares of common stock, at exercise prices of $0.65 and
$0.88 per share, and expire approximately eighteen months after the close of
the offering; an additional warrant is exercisable at any time for
approximately 18 shares of common stock at an exercise price of $1.65 per
share, and expires approximately forty-eight months after the close of the
offering.  These securities have not been registered under the Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent such registration or any applicable exemption therefrom.
    As a condition to the closing of the private placement, the Company agreed
that at its annual meeting of stockholders to be held in April 2003, the size
of the Company's board of directors would be decreased to seven, with current
directors J. Thomas Parmeter, Ph.D., Edward J. Hartnett, Kerry L. Kuhn, M.D.,
Phillip J. Davis and George R. Walker to be renominated and Phillip Berman,
M.D. and Edward G. Cape, Ph.D., to be nominated for initial terms for election
by the Company's stockholders.

    Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing products to improve medical and surgical outcomes. From its
inception in 1988, PPTI has been a pioneer in protein design and synthesis,
creating an extensive portfolio of proprietary biomaterials for use in the
development of bioactive devices. 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 clinical 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 on Form 10-KSB, the
Company's quarterly reports on Form 10QSB for the periods ended March 31,
2002, June 30, 2002 and September 30, 2002, 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.

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