SAN DIEGO, June 10 /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 $250,000 of a private placement of Series I Convertible
Preferred stock and warrants yielding total gross proceeds of $3.25 million.
The net proceeds will be used to fund Protein Polymer's research and clinical
programs, and for general corporate purposes.  Investors in the private
placement included the Johnson and Johnson Development Corporation, the Taurus
Advisory Group and other institutional and accredited investors.
    "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 J. Thomas Parmeter,
President and Chief Executive Officer of Protein Polymer Technologies.  "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 30,255 shares of Series I
Convertible Preferred stock at price of $100 per share, together with warrants
for the purchase of an aggregate of approximately 2,313,887 shares of common
stock.  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.  One warrants is exercisable at any time for
approximately 27 shares of common stock, at an exercise $0.88 per share, and
expires 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.  The
securities were sold to accredited investors in a private placement pursuant
to exemptions under the Securities Act of 1933, as amended.  The company
recently filed a registration statement with the Securities and Exchange
Commission to permit the sale of the underlying common shares following the
conversion from preferred to common by the investors in the Series I
Preferred.  Lane Capital Markets, LLC and The Sapphire Group, LLC, assisted
the Company with the transaction.  Warrants to acquire 264,273 shares of
common stock exercisable at any time and expiring approximately 5 years after
issuance, were issued to Lane Capital Markets, LLC.

    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 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 2002 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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