Angiotech Enters Fast Growing Orthopedic and Spinal Surgery Arena Through Acquisition of NeuColl VANCOUVER, June 24 /PRNewswire-FirstCall/ -- Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI; TSX: ANP) today announced that it has entered into an agreement to acquire NeuColl, Inc., a company engaged in the development and commercialization of collagen-based products for orthopedic and spinal applications. NeuColl is a privately-held orthobiologics company based in Los Gatos, California. Previously, Angiotech had obtained an equity interest in NeuColl through the acquisition of Cohesion Technologies, Inc. on January 31, 2003. Under the terms of the agreement, Angiotech will acquire the remainder of NeuColl's equity for approximately US$13 million in cash. Angiotech expects to complete the acquisition in the third quarter of 2004. NeuColl will form one of the cornerstones for Angiotech's emerging orthopedics franchise. Its initial product platform is a synthetic bone graft substitute comprised of collagen, a composite material of hydroxyapatite and tricalcium phosphate. Zimmer, Inc. has distribution rights for the two lead products, COLLAGRAFT(R) and NEUGRAFT(R) Bone Graft Matrixes in the United States, Japan and other countries. COLLAGRAFT is sold through independent distributors in Europe. These synthetic biomaterials eliminate the trauma created when a second operative site is required to harvest the patient's own bone (known as "autograft" material) to complete a bone graft procedure. NeuColl's materials exhibit excellent biocompatibility and closely mimic the composition of natural bone. Typical medical applications include total joint replacement surgery, spinal fusion procedures, fracture repair, use as an autograft extender and to fill the defect left when bone is harvested. "With NeuColl we are acquiring a robust product line, a strong distribution partner, and intellectual property that will allow us to immediately develop novel therapies in orthopedics and spine," said Jeanne M. Bertonis, Chief Business Officer of Angiotech. Upon closing of the transaction, NeuColl will be a wholly-owned subsidiary of Cohesion Technologies, Inc., a wholly-owned subsidiary of Angiotech Pharmaceuticals, Inc. Vancouver-based Angiotech Pharmaceuticals, Inc., a specialty pharmaceutical company focusing on drug-coated medical devices and biomaterials, is dedicated to enhancing the performance of medical devices and biomaterials through the innovative uses of pharma-therapeutics. To find out more about Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI; TSX: ANP), please visit our website at http://www.angiotech.com/. Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continue," "estimate," "expects," "may" and "will" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, for example, statements about completion of the NeuColl transaction, product performance and applications and the Company's ability to successfully distribute and sell products. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; technology changes; competition; changes in business strategy or development plans; the ability to attract and retain qualified personnel; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Company; and other factors referenced in the Company's filings with the United States Securities and Exchange Commission or the Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not assume the obligation to update any forward-looking statements. COLLAGRAFT(R) is a registered trademark of Zimmer, Inc. NEUGRAFT(R) is a registered trademark of NeuColl, Inc. FOR ADDITIONAL INFORMATION: --------------------------- Analysts: Rui Avelar, Angiotech Pharmaceuticals, Inc. (604) 221-7676 ext 6996 Investors: Ian Harper, Angiotech Pharmaceuticals, Inc. (604) 221-7676 ext 6933 Media: Eric Starkman, Starkman & Associates (212) 252-8545 ext 12 DATASOURCE: Angiotech Pharmaceuticals, Inc. CONTACT: Analysts: Rui Avelar, Angiotech Pharmaceuticals, Inc., (604) 221-7676 ext 6996; Investors: Ian Harper, Angiotech Pharmaceuticals, Inc., (604) 221-7676 ext 6933; Media: Eric Starkman, Starkman & Associates, (212) 252-8545 ext 12

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