SAN DIEGO, Aug. 14 /PRNewswire-FirstCall/ --
Protein Polymer Technologies, Inc. (OTC Bulletin Board: PPTI), reports today
its financial results for the second quarter and for the six months ended
June 30, 2002.  For the quarter, the Company had a net loss applicable to
common shareholders of $374,057 ($0.01 per share), and for the six month
period, a loss of $909,702 ($0.04 per share).  Net losses for the comparable
periods in 2001 were $869,885 ($0.04 per share) and $1,809,456 ($0.09 per
share), respectively.  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
$945,780 and $1,418,478, respectively, for the quarter and the six month
period ended June 30, 2002, compared to $201,785 and $293,386 for the same
periods last year.  The increase in contract and licensing revenue is due
primarily to research and development payments from Spine Wave, Inc. for the
development of a spinal disc repair product for the treatment of lower back
pain.  Following Spine Wave's completion in the first quarter of 2002 of an
$18 million equity financing, PPTI's contractual R&D services for Spine Wave
were expanded to include much of the spinal product's pre-clinical
development.  Also included is the amortized portion of an up-front license
payment associated with the formation of a partnership with Femcare Ltd., of
Nottingham, England, to commercialize PPTI's product for the treatment of
female stress urinary incontinence in Europe and Australia.  The $1 million
Femcare license fee is being recognized as income over a three-year period
ending January 2003 at a rate of approximately $83,333 per quarter.
    Operating expenses for the quarter and the six months ended June 30, 2002
were $1,250,617 and $2,190,502, respectively, as compared to $1,002,450 and
$1,965,164, respectively, for the same periods in 2001.  Increased
expenditures in the second quarter primarily represent the additional costs of
preclinical testing of the spinal disc repair product in preparation for
filing an Investigational Device Exemption (IDE) with the U.S. Food and Drug
Administration requesting permission to initiate human clinical testing of the
product.  Otherwise, operating expenses for the past two years have remained
consistently low due primarily to reductions in personnel and expenditures
implemented prior to 2001.  To the extent that capital resources become
available, expenses are expected to rise in subsequent quarters due to the
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 June 30, 2002 was $567,267, as compared to
$234,271 as of December 31, 2001.  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 August 2002.  Although the
Company's current cash burn rate is offset in part by increased R&D contract
revenue, the Company is seeking to raise additional capital to support further
product development and continued clinical testing of its products for female
incontinence and cosmetic dermal corrections.  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 tissue engineering 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, 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 for repair of spinal discs and other surgical
applications, scaffolds for wound healing and tissue engineering, and depots
for local drug delivery.

    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, and
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        Six months ended
                                    June 30,                 June 30,
                                2002        2001        2002          2001
    SUMMARY OF OPERATIONS

    Contract revenue         $943,764     $183,333  $1,413,667     $266,667
    Interest income             2,016       18,452       3,636       26,681
    Product and other
     income                         0            0       1,500           38
       Total revenues         945,780      201,785   1,418,478      293,386

    Total expenses          1,250,617    1,002,450   2,190,502    1,965,164

    Net loss                $(304,837)   $(800,665)  $(772,024) $(1,671,778)

    Undeclared and/
     or paid dividends
     on Preferred Stock        69,220       69,220     137,678      137,678

    Net loss applicable
     to common
     shareholders           $(374,057)   $(869,885)  $(909,702) $(1,809,456)

    Net loss per common
     share -
     basic and diluted         $(0.01)     $(0.04)      $(0.04)      $(0.09)

    Shares used in
     computing net
     loss per share -
     basic and diluted     27,000,455   21,571,994  25,566,557   20,250,395

                                         As of           As of
                                    June 30, 2002     Dec. 31, 2001
    BALANCE SHEET INFORMATION

    Cash and cash equivalents           $567,267       $234,271
    Working capital                     (305,773)      (584,980)
    Total assets                         774,726        526,717
    Total capital invested            43,493,959     42,492,125
    Accumulated deficit             $(43,662,425)  $(42,890,401)

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