Advanced Tissue Sciences Announces FDA Approval of Human Collagen for Wrinkle Injections

San Diego, Calif., March 12, 2003 -- Advanced Tissue Sciences, Inc. (OTC BB: ATISQ) today announced that the U.S. Food and Drug Administration (FDA) has approved Inamed Corporation’s (NASDAQ: IMDC) Pre-Market Approval supplement for CosmoDerm™ and CosmoPlast™ human collagen products. These new dermal fillers contain Advanced Tissue Sciences’ human-based collagen.

As a result of the FDA approval, the company expects to receive a $2 million milestone payment from Inamed. Under the agreement between the two companies, the milestone payment is due within 30 days of the FDA approval.

On Feb. 7, 2003 the company filed a proposed Liquidating Plan of Reorganization and accompanying Disclosure Statement with the United States Bankruptcy Court for the Southern District of California. The hearing to confirm plan is scheduled for 10 a.m. pacific time on March 19, 2003.

If the plan is confirmed, the company’s shares will cease trading at the close of business on March 31, 2003. A liquidating trust will be formed to distribute cash from the liquidation of the remaining assets. Holders of the company's stock at the time of the effective date of the Plan will receive a non-trading, non-transferable interest in the liquidating trust equal to the pro rata interest they previously held in the common stock of the company. If cash is available for distribution to stockholders, the initial distribution by the trust to former stockholders will occur not later than 60 days after the effective date. Further distributions, if any, will follow as funds are collected and/or assets are sold.

Statements in this press release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. Risks and uncertainties exist in the company's decision to liquidate including, without limitation, uncertainties related to the company's ability to effect an orderly wind down of its operations, the timing of the receipt of milestone or other payments, the retention of the necessary personnel, the possible amendment or delay in implementation or termination of the company’s proposed plan of liquidation, approval by the bankruptcy court of the company's proposed plan of liquidation, the ability of the company to find a buyer or buyers for its assets, the amounts to be realized in connection with the proposed sale of the company's assets, the timing and amount of payments, if any, to security holders under the proposed plan of liquidation, the quotation of the company's shares on the OTC Bulletin Board, a history of operating losses and accumulated deficits, potential write-offs and other charges, as well as other risks detailed from time to time in publicly available filings with the Securities and Exchange Commission including, without limitation, Advanced Tissue Sciences' annual report on Form 10-K for the year ended December 31, 2001 and the company's quarterly reports on Form 10-Q for the quarters ended March 31, 2002, June 30, 2002 and September 30, 2002. The company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.