PROTEIN POLYMER TECHNOLOGIES CLOSES $3.25 MILLION PRIVATE PLACEMENT

ÝÝÝÝÝÝÝÝÝ SAN DIEGO, CA – June 10, 2003 -- Protein Polymer Technologies, Inc. (OTC Bulletin Board: PPTI), a company focused on high performance bioactive devices designed for improved surgical outcomes, announced today the final closing of $250,000 of a private placement of Series I Convertible Preferred stock and warrants yielding total gross proceeds of $3.25 million. The net proceeds will be used to fund Protein Polymer’s research and clinical programs, and for general corporate purposes. Investors in the private placement included the Johnson and Johnson Development Corporation, the Taurus Advisory Group and other institutional and accredited investors.Ý

ìThis cash infusion reflects the confidence of the investment community in the development and commercialization of Protein Polymerís product candidates, research pipeline and business strategy,î commented J. Thomas Parmeter, President and Chief Executive Officer of Protein Polymer Technologies.Ý ìWe will use the proceeds to expand our clinical trials and accelerate the development of our manufacturing process while we continue to advance our partnering efforts and other commercialization opportunities. As a result, we will add more value to our incontinence and dermal tissue augmentation products, and to our surgical adhesives and sealants including the ongoing development of a Spinal disc repair product for Spinal Wave.î

In the private placement, the company issued 30,255 shares of Series I Convertible Preferred stock at price of $100 per share, together with warrants for the purchase of an aggregate of approximately 2,313,887 shares of common stock. Each share of Series I Preferred Stock is convertible at any time at the election of the holder into approximately 182 shares of common stock at a conversion price of $0.55 per share, subject to certain antidilution adjustments.Ý Each share of Series I Preferred Stock also received warrants to purchase common stock.Ý One warrants is exercisable at any time for approximately 27 shares of common stock, at an exercise $0.88 per share, and expires approximately eighteen months after the close of the offering; an additional warrant is exercisable at any time for approximately 18 shares of common stock at an exercise price of $1.65 per share, and expires approximately forty-eight months after the close of the offering. The securities were sold to accredited investors in a private placement pursuant to exemptions under the Securities Act of 1933, as amended.Ý The company recently filed a registration statement with the Securities and Exchange Commission to permit the sale of the underlying common shares following the conversion from preferred to common by the investors in the Series I Preferred. Lane Capital Markets, LLC and The Sapphire Group, LLC, assisted the Company with the transaction. Warrants to acquire 264,273 shares of common stock exercisable at any time and expiring approximately 5 years after issuance, were issued to Lane Capital Markets, LLC.

Protein Polymer Technologies, Inc., is a San Diego-based company focused on developing products to improve medical and surgical outcomes.Ý From its inception in 1988, PPTI has been a pioneer in protein design and synthesis, creating an extensive portfolio of proprietary biomaterials for use in the development of bioactive devices.Ý These genetically engineered biomaterials are high molecular weight proteins, processed into products with physical and biological characteristics tailored to specific clinical performance requirements.Ý 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, scaffolds for wound healing and tissue engineering, and depots for local drug delivery.Ý To date, PPTI has been issued twenty-four U.S. Patents on its core technology with corresponding issued and pending patents in key international markets.

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 raising adequate capital to continue operations, 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 Annual Report 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.

CONTACTS:

J. Thomas Parmeter
President

Janis Y. Neves
Director of Finance

(858) 558-6064     e-mail: info@ppti.com