Court Approves Segenix Sale

San Diego, Calif., January 22, 2004 – The ATS Liquidating Trust today announced that the United States Bankruptcy Court for the Southern District of California has approved the Trustee’s motion under section 363 of the U. S. Bankruptcy Code to allow the sale of the Trust’s Segenix™ intellectual property rights to RegeneMed, Inc.

RegeneMed will pay the ATS Liquidating Trust $75,000 at closing in addition to a $25,000 down payment already received by the Trust plus future milestone and royalty payments conditional on future product development.

Under the agreement, RegeneMed will acquire certain intellectual property related to engineered tissue for drug screening, drug development, and therapeutic applications in endocrine, including liver and pancreas. The intellectual property includes a sublicense of Patent 4,963,489 (the "489 Patent"). The buyer is aware that the United States Patent and Trademark Office (PTO) has granted a request for ex parte reexamination of the 489 Patent and that the PTO has received a request (which it has neither granted nor denied) for reexamination of another patent that would also be sublicensed under the agreement.

$25,000 of the purchase price will be held by the Trust pending resolution of any issues involving the two patents. Should either of the patents be found invalid, the $25,000 would be returned to the buyer.