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 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.

                      Protein Polymer Technologies, Inc.
                        Condensed Financial Statements
                                 (unaudited)

                                                  Three months ended
                                                       March 31,
                                                1997               1996
     SUMMARY OF OPERATIONS
     Contract revenue                        $137,250               $--
     Interest income                           62,445            20,955
     Product and other income                  18,604            15,514
       Total revenues                         218,299            36,469

     Total expenses                         1,095,655           779,975

     Net loss                              $(877,356)        $(743,506)

     Undeclared accumulated dividends
       on Preferred Stock                     121,282           122,295
     Net loss applicable to common
       shareholders                        $(998,638)        $(865,801)

     Loss per share                           $(0.11)           $(0.15)

     Weighted average shares used
     in computing loss per share            9,035,106         5,866,898


                                                As of            As of
                                             Mar. 31, 1997    Dec. 31, 1996
                                                               (audited)
     BALANCE SHEET INFORMATION

     Cash, cash equivalents and
      short-term investments               $4,991,052        $1,260,399
     Working capital                        4,612,480           840,196
     Total assets                           5,534,109         1,746,581
     Total capital invested                25,077,962        20,456,360
     Accumulated deficit                 (20,084,593)      (19,207,237)