SAN DIEGO, Dec. 12 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI) and Spine Wave, Inc. today announced the
extension of the contractual research and development relationship between the
two companies.  PPTI estimates it will receive from Spine Wave approximately
$1.2 million in R&D payments under the revised agreement.
    Under the amended Supply and Services Agreement, PPTI, on behalf of Spine
Wave, is continuing product characterization studies, and preparations for the
supply of product to be used in human clinical trials following required
regulatory approvals.  During the subsequent periods leading to regulatory
marketing approvals, PPTI's contractual responsibilities include the supply of
clinical product and preparation for commercial manufacturing operations.
Spine Wave is responsible for clinical testing, regulatory approvals, and
commercialization.
    Spine Wave is a private company formed in 2001 by PPTI and Windamere
Venture Partners to develop and commercialize an injectable protein-based
formulation for the repair of spinal discs damaged either by injury or aging.
Based on PPTI's proprietary tissue adhesive technology, the initial product
under development has the potential to be utilized in a number of spinal and
other orthopedic procedures including discectomy and the treatment of chronic
low back pain.  In addition to receiving R&D Payments, PPTI holds an equity
position in Spine Wave, has rights to commercial manufacturing, and will
receive a royalty on product sales.
    Back pain is the leading cause for healthcare expenditures in the United
States. According to a 2000 Viscogliosi Bros., LLC, Spine Industry report,
back pain results in more than $50 billion in direct and indirect medical
expense.  Despite the invasive surgery associated with many spinal procedures,
such as spinal fusion, the worldwide spinal market represents more than
$2 billion in revenues, growing at a rate of over 25% annually. It is the
fastest growing major segment of the orthopedic industry.
    In many instances, spinal fusion is a procedure of last resort, since it
destroys the natural function and mobility of the spine by replacing the shock
absorbing intervertebral disc with metal and/or bone.  Currently, there are no
approved products to replace or restore the function of the invertebral disc
that has degenerated, nor to intervene in the degenerative process.  Using
PPTI's patented technology, Spine Wave and PPTI are developing a product (the
Injectable Disc Nucleus) designed to restore natural disc function by
replacing or augmenting the natural disc nucleus that has degenerated or that
has been surgically removed in a discectomy procedure.  The product has the
potential to be used independently in minimally invasive outpatient procedures
as well as in combination with traditional open procedures.
    Spine Wave recently completed its Series B financing providing assurance
that sufficient resources will be available to maintain a focused development
effort for the injectable spinal disc repair product and other products under
development.  Spine Wave, which holds a license to PPTI's technology for
spinal and orthopedic applications and contracts with PPTI for product
development and manufacturing services, raised $22.25 million in Series B
funding with Morgenthaler Ventures, New Enterprise Associates, Canaan
Partners, Thoma Cressey Equity Partners, Collinson Howe & Lennox, California
Technology Ventures, New Venture Partners, NeuroVentures Capital and Spring
Ridge Ventures.

    About PPTI and Protein Polymers:
    Protein polymers are synthetic proteins created "from scratch" through
chemical DNA (gene) synthesis and produced in quantity by bacteria through
large-scale fermentation.  As a result, protein polymers are capable of
uniquely combining specified biological, chemical, and physical properties of
natural proteins which make up the body's own tissues, while containing no
human or animal components that could potentially transmit or cause disease.
They can also be processed into a wide variety of different materials (such as
films, fibers, adhesives, and gels), while retaining these properties.  PPTI
pioneered the development of this technology and now holds 25 U.S. patents on
the design, composition of matter, and production of protein polymers, with
corresponding international applications in major markets.
    Protein Polymer Technologies, Inc. (PPTI), 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 polymer design and
synthesis, developing an extensive portfolio of proprietary biomaterials.  In
addition to the spinal disc repair product being developed with Spine Wave,
PPTI is conducting pilot clinical studies of both a urethral bulking agent for
the treatment of stress urinary incontinence and a dermal contouring agent for
cosmetic surgery and dermatology.  Other targeted products include tissue
adhesives and sealants for general surgical use, 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 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 on Form 10-KSB, its 2003 quarterly filings on form 10QSB 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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