Protein Polymer Technologies, Inc. Announces Stockholder Rights Plan

    SAN DIEGO, Aug. 27, 1997 -- Protein Polymer Technologies, Inc. (Nasdaq: PPTI), reports today its Board of Directors has adopted a Stockholder Protection Agreement ("Rights Plan") that distributes Rights to stockholders of record as of September 10, 1997.
    On behalf of the Board of Directors of Protein Polymer Technologies, Inc., J. Thomas Parmeter, President and Chief Executive Officer of the Company, states: "The Company has been concerned that we may become an attractive takeover target at prices that do not adequately reflect the intrinsic value of our technology and the market opportunities the technology makes available.
    "We have taken this step not because of any pending acquisition bids, but to provide protection of all stockholders' interests when addressing the complex issues surrounding abusive takeover tactics.  The Rights Plan is viewed as one of the few avenues available to accomplish this; it is for this reason that thousands of companies have adopted similar stockholder rights plans.  It is a well accepted approach that helps to ensure all stockholders are treated fairly and equally, and receive an appropriate price in the event a hostile acquisition is attempted."
    The Rights will trade together with the common stock, and generally become exercisable ten business days after a person or group acquires, or announces the intention to acquire 15% or more of the outstanding shares of PPTI common stock, with certain permitted exceptions.  The Rights then generally allow the holder to acquire additional shares of PPTI capital stock at a discounted price.  The issuance of the Rights is not a taxable event, will not affect the Company's reported earnings per share, and will not change the manner in which the Company's common stock is currently traded.