ATS Liquidating Trust Announces Agreement to Compromise Collagen Royalty Rights

San Diego, Calif., September 22, 2006 – The ATS Liquidating Trust (ATISZ.PK – please read the disclaimer in the last paragraph of this release regarding trading under this symbol) today announced that the Trustee of the Trust has reached an agreement with Inamed, LLC, as successor-in-interest to Inamed Corporation, for a lump sum royalty payment in full satisfaction of Inamed’s future obligations to make collagen royalty payments to the trust. The agreement has been submitted to the U. S. Bankruptcy Court for approval. A copy of the Court filing detailing the agreement is available on the Trust’s web site at www.advancedtissue.com.

Under the agreement, Inamed will pay the Trust a lump sum of $5.5 million plus all accrued but unpaid royalty payments through the date of the agreement, August 29, 2006.

The Trust is entitled to receive royalties on Inamed’s sales of human collagen under terms of a 1999 contract between Advanced Tissues Sciences, Inc. and Inamed Corporation and the subsequent amended agreements resulting from the 2002 bankruptcy filing of Advanced Tissue Sciences. Inamed is now a wholly-owned subsidiary of Allergan, Inc.

The compromise with Inamed is part of the Trustee’s efforts to liquidate the Trust’s remaining assets.  The Trustee’s goal is to make a final liquidating distribution to Trust beneficiaries as soon as practical after receipt of the cash from Inamed and liquidation of the Trust’s other assets. The final amount of such a distribution will depend on, among other things, the final expenses necessary to conclude the Trust’s activities. An announcement of the amount and timing of the distribution will be posted on the Trust web site.

Under the provision of the Plan as approved by the Court, the Trust is not required to make a distribution to former Advanced Tissue Sciences, Inc. (“ATS”) shareholders who have not provided the Trust with a current address.  Beneficiaries who owned ATS stock in their own name and who have not received a distribution should contact the Trustee by mail, fax or e-mail with their current address.  Beneficiaries who own their stock through a broker should contact their broker.

As a result of the Chapter 11 Liquidation Plan of Reorganization which was confirmed by the Bankruptcy Court by a final order dated March 21, 2003 and which became effective on March 31, 2003, the stock of ATS was cancelled and its former stockholders now hold non-trading interests in the ATS Liquidating Trust. According to the terms of the Plan, the Interests in the ATS Liquidating Trust are not to trade and the Liquidating Trustee will only recognize as beneficiaries of the Trust those equity holders of record as of the effective date of the Plan. Any trading that may be occurring after the effective date of the Plan under the symbol “atisz.pk” or otherwise is unauthorized by the Plan and will not be recognized by the Trustee. As a result of the terms of the Plan and the order of the Bankruptcy Court confirming the Plan, the Securities and Exchange Act of 1934 as amended and the rules promulgated there under no longer apply to the Company since it has no issued stock, no shareholders, and is no longer in business. However, to the extent applicable, forward looking statements in this release regarding the sale of royalties and any future distributions are made by the Trust under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

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