Protein Polymer Technologies Reports First Quarter 1997 Financial Results

    SAN DIEGO, April 25, 1997 -- Protein Polymer Technologies, Inc. (Nasdaq: PPTI), reports today its financial results for the first quarter ended March 31, 1997.  For the quarter, the Company had a net loss applicable to common shareholders of $999,000 ($.11 a share), as compared to a net loss of $866,000 ($.15 a share) for the comparable period a year ago.  The net loss and loss per share figures include accumulated dividends related to the Company's preferred stock.  The Company ended the first quarter with $5,534,000 in total assets, compared with $1,747,000 as of December 31, 1996.     Total revenues were $218,000 for the first quarter ended March 31, 1997, compared to $36,000 for the same period last year.  Operating expenses for the quarter were $1,096,000, as compared to $780,000 for the same period in 1996, a 41% increase.  During this period, the Company expanded its research and development activities in its surgical adhesives and sealants program with Ethicon, and in its internally funded tissue augmentation program.  Also, expenses increased related to the filing of a number of domestic and international patents, and to expanded business development efforts.
    "Early this quarter we completed a privately placed financing with several first-rate institutional investors, which included the Johnson & Johnson Development Corporation.  This provides us with the resources to advance several valuable product opportunities.  As a result, partnership interest is increasing in all of our application areas," said J. Thomas Parmeter, PPTI's President and Chief Executive Officer.  "We continue to make progress on our tissue adhesives program, and our relationship with the Ethicon subsidiary of Johnson & Johnson remains strong."
    Protein Polymer Technologies, Inc. is a development stage biomaterials company focused on surgical repair and drug delivery.  In addition to tissue adhesives and sealants, other products being developed include materials for wound healing and tissue augmentation, surgical adhesion barriers, and drug delivery devices.  PPTI also markets a line of protein polymer-activated cell culture products under the trade names of ProNectin(R) and SmartPlastic(R).
    This press release may contain forward-looking statements that are based on management's 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 approvals, manufacturing scale-up and market acceptance.  The reader is encouraged to refer to the Company's 1996 10-KSB and other 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.