FOR IMMEDIATE RELEASE

CONTACTS:

Protein Polymer Technologies, Inc. J. Thomas Parmeter President (858) 558-6064

Spine Wave, Inc. Mark LoGuidice President (203) 259-2232

PROTEIN POLYMER AND SPINE WAVE EXTEND R&D TIES FOR DEVELOPMENT OF SPINAL DISC REPAIR PRODUCT

SAN DIEGO, December 12, 2003 -- Protein Polymer Technologies, Inc. (OTC BB: 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.