SAN LUIS OBISPO, California - July 2, 2001 - FzioMed, Inc. announced today that it has been awarded the CE Mark certification for its Oxiplex™ adhesion barrier technology for use in spine, abdominal and pelvic surgery. The CE Mark allows FzioMed's Oxiplex™/SP Gel and Oxiplex™ Adhesion Barrier Film products to be marketed and sold throughout the European Community.

Oxiplex™/SP Gel and Oxiplex™ Film are bioabsorbable adhesion barriers that are applied during surgery to reduce post-operative internal scarring, also known as post-surgical adhesions. Post-surgical adhesions are a leading complication of many surgical procedures. Oxiplex™/SP Gel is only the second bioabsorbable adhesion barrier product to receive CE Mark for use in spine surgery. Oxiplex™ Adhesion Barrier Film is for use in abdominal and pelvic surgery. The company is also developing products for cardiac surgery and tendon surgery.

Ronald Haynes, President and CEO of FzioMed, Inc. said, "We are very proud to receive the CE Mark certification. This is FzioMed's first approval in the broad line of bioabsorbable medical products we are developing and it fulfills a major objective in our global commercialization strategy."

FzioMed is a privately held biomedical company engaged in the development and commercialization of advanced, bioabsorbable products based on the company's patented Oxiplex™ technology. Oxiplex™ is an innovative polymer technology that is formulated for a variety of targeted medical indications and markets. Products in development using Oxiplex™ include those for the prevention of post-surgical adhesions, hemostasis during surgery, osteoarthritis and drug delivery. FzioMed products are at various stages of clinical and pre-clinical development in the United States and are directed towards high growth markets in the rapidly growing field of biosurgery products.

Oxiplex is a registered trademark of FzioMed, Inc.

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