Court Sets Hearing Date on ATS Liquidating Trust Request
to Reopen Bankruptcy Case

San Diego, Calif., September 7, 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 United States Bankruptcy Court has issued an order for a hearing on the Trust’s motion seeking to reopen the bankruptcy cases originally filed by Advanced Tissue Sciences, Inc., ATS Dermagraft, Inc., ATS Orthopedics, Inc., BioNuvia, Inc., and Segenix, Inc., U.S.B.C. Case No. 02-09988-M11 (Bankr. S.D. Cal.).

The hearing will be held at 2:00 p.m. pacific time on Sept. 14, 2006 in Department 1, room 218 of the United States Bankruptcy Court, Southern District of California, 325 west F Street, San Diego, CA 92101.

The purpose of the motion filed by the Trust is to request that the Bankruptcy Court reopen the bankruptcy cases to enable the Trustee to comply with the terms of the Plan and the Trust Agreement, which require that he provide notice to the United States Trustee and obtain Bankruptcy Court approval of any proposed compromise where the amount involved exceeds $25,000. The Trustee has reached a proposed compromise of the Trust's right to receive certain future royalty payments which involves an amount substantially in excess of the $25,000 threshold requiring notice to the United States Trustee and Bankruptcy Court approval. After the bankruptcy cases are reopened, the Trustee intends to file the details of the proposed transaction with the Bankruptcy Court and post the information on the Trust’s web site.

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.

Click here to read the Court order
Entered Order Shortening Time on Motion to Reopen.pdf

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