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Advanced Tissue Sciences Awarded $2 Million Grant for Tissue Engineered Vascular Grafts

    LA JOLLA, Calif., Oct. 13 /PRNewswire/ -- Advanced Tissue Sciences, Inc.
(Nasdaq: ATIS) has been awarded a $2 million Advanced Technology Program (ATP)
grant from the National Institute of Standards and Technology (NIST).  In
collaboration with the Department of Bioengineering at the University of
California San Diego (UCSD), the Company will lead a multi-disciplinary effort
to design, construct and evaluate tissue engineered vascular grafts produced
from cells grown on a biocompatible scaffold.  The grant is structured to
support this development program over a three-year period.
    The project will integrate current advances in cell culture, bioreactor
technology, biomaterials, and in vivo blood vessel mechanics to create a
unique living tissue replacement for blood vessels.  The successful
integration of these technologies through collaboration between the Company
and UCSD could lead to the development of grafts to treat coronary artery and
other vascular diseases.  Approximately 14 million Americans have some form of
coronary artery disease and over 430,000 coronary artery bypass surgeries are
performed annually in the United States.  The application of tissue engineered
vascular grafts could provide patients with a viable alternative treatment.
    Advanced Tissue Sciences is a tissue engineering company utilizing its
proprietary core technology to develop and manufacture human tissue products
for tissue repair and transplantation.  The Company is currently marketing
Dermagraft-TC(TM), a temporary covering for severe burns, with market
approval from the U.S. Food and Drug Administration (FDA).  In addition,
Advanced Tissue Sciences has filed a premarket approval application for
Dermagraft(R) for the treatment of diabetic foot ulcers under the FDA's
expedited review process.  The Company is also developing products for
cartilage applications.
    The discussion contained in this press release relating to approval and
commercialization of the Company's products involves risks and uncertainties.
The ATP grant requires the Company to meet certain minimum levels of program
funding to receive the grant funding.  In addition, the second and third years
of funding are contingent on the availability of funds from Congress, subject
to satisfactory performance by the Company and will be at the sole discretion
of NIST.  Further, no assurance can be given that the Company will
successfully obtain Food and Drug Administration or other regulatory approvals
of Dermagraft (or that any such approvals will be obtained on a timely basis),
scale up manufacturing processes or successfully commercialize any other
products in development.  These and other risks are detailed in publicly
available filings with the Securities and Exchange Commission such as the
Company's Annual Report on Form 10-K and in a Registration Statement on Form
S-3 (File No. 333-01185).  Actual results may differ materially from those
currently anticipated as a result of such risks.


SOURCE Advanced Tissue Sciences, Inc.




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CONTACT:
Beth Kriegel, Director, Investor Relations of
Advanced Tissue Sciences, Inc., 619-450-5802