ATS Liquidating Trust Distributes Grantor Tax Letter

San Diego, Calif., March 4, 2004 -- 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 is mailing a Grantor Letter to holders of record of interests in the Trust. The letter contains information regarding allocable portions of all items of Trust income, deductions and credits which must be reported on income tax returns. This information may be relevant to certain holders as they prepare their tax returns for 2003.

The Trustee recommends that holders consult their tax advisor concerning specific tax consequences and tax reporting relating to the tax information provided in the Grantor Letter. The Trustee can not and will not provide advice on the personal tax treatment of the tax information.

Those interest holders who held their shares of Advanced Tissue Sciences in street name will not receive such a letter directly from the Trust. However, a sample letter can be found on the Trust web site at www.advancedtissue.com under the link labeled Tax Information for 2003. It contains the necessary financial information for holders to calculate their allocable share of the Trust’s income and expenses.

Holders of record should have received previously from the Trustee a Form 1099-Div and related tax information concerning the 2003 distribution of beneficial interests in the trust based on their shares in ATS.

As a result of the Chapter 11 Liquidating Plan of Reorganization (“Plan”) 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 thereunder 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, the above cautionary statement is made by the Trust under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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