SAN DIEGO, April 18 /PRNewswire-FirstCall/ -- Protein Polymer
Technologies, Inc. (OTC Bulletin Board: PPTI), a company focused on high
performance bioactive devices designed for improved surgical outcomes,
announced today the final closing of approximately $3.6 million of a private
placement of common stock and warrants yielding total gross proceeds of
approximately $7.75 million.  Of the committed capital, approximately
$1.2 million represents the conversion of short term promissory notes
previously issued by the Company.  The net proceeds will be used to fund
Protein Polymer's research and clinical programs, and for general corporate
purposes, including potential acquisitions.  Investors in the private
placement included both institutional and individual accredited investors.
    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.
    "This cash infusion reflects the confidence of the investment community in
the development and commercialization of Protein Polymer's product candidates,
research pipeline and business strategy," commented William N. Plamondon,
Protein Polymer Technologies' Chief Executive Officer.  "We will use the
proceeds to expand our clinical trials and accelerate the development of our
manufacturing process while we continue to advance our partnering efforts and
other commercialization opportunities.  As a result, we will add more value to
our incontinence and dermal tissue augmentation products, and to our surgical
adhesives and sealants including the ongoing development of a spinal disc
repair product for Spine Wave."
    In the private placement, the company issued 23,586,528 shares of common
stock at price of $0.33 per share, together with warrants for the purchase of
an aggregate of approximately 11,793,262 shares of common stock.  The warrants
are exercisable at an exercise price of $0.50 per share, and expires
approximately 48 months after the close of the offering.  The securities were
sold to accredited investors in a private placement pursuant to exemptions
under the Securities Act of 1933, as amended.  The company has agreed to file
a registration statement with the Securities and Exchange Commission to permit
the sale of the common shares, and the underlying common shares following
conversion of the warrants, within 30 days.  Luther Capital Management, LLC
and Palladium Capital Advisors, LLC, assisted the Company with the
transaction, receiving aggregate fees of approximately $425,000 and warrants
to acquire approximately 120,000 shares of common stock exercisable at any
time and expiring approximately 5 years after issuance.

    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 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 2004 Annual Report Form 10-KSB, 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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