Changes Necessary to Include Additional Non-Cash Imputed
           Dividend Expense Related to the Issuance of Convertible
                   Preferred Stock and Warrants During 2003

    SAN DIEGO, March 30 /PRNewswire-FirstCall/ -- Protein Polymer
Technologies, Inc. (OTC Bulletin Board: PPTI) announced today that as a result
of a recommendation by the Company's independent auditors, the Company will be
restating its financial statements included in its Annual Report on
Form 10-KSB for the fiscal year ended December 31, 2003 in connection with the
accounting treatment of certain transactions related to the issuance of
convertible preferred stock and warrants during 2003 to include additional
non-cash imputed dividend expense totaling $1,211,333 in the restated
financial statements for 2003.
    As a result of the restatement, the Company's balance sheet at
December 31, 2003 will reflect an increase in deficit accumulated during
development stage of $1,211,333 and an increase in additional paid in capital
of $1,211,333.  As a result of the restatement, the Company's income statement
for the year ended December 31, 2003 will reflect an increase in undeclared
and/or paid dividend on preferred stock of $1,211,333, and an increase in net
loss applicable to common shareholders of $1,211,333 and an increase in net
loss per common share -- basic and diluted -- of $0.04.

    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-six 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 2003 Annual Report on Form 10-KSB, the
Company's quarterly reports on Form 10QSB for the periods ended March 31,
2004, June 30, 2004 and September 30, 2004, 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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