Court Approves Extension of Trust Termination Date for One Year

San Diego, Calif., Feb. 18, 2008 – The ATS Liquidating Trust announced today that the United States Bankruptcy Court for the Southern District of California has approved a motion to extend the automatic termination date of the Trust for one year.

Under the terms of Liquidating Plan of Reorganization and the Trust Agreement, the Trust was set to automatically terminate on March 31, 2008. Pursuant to the express terms of the Plan, however, the Court may extend the deadline for an additional year “upon a showing of necessity to complete the purpose of the ATS Liquidating Trust.”

The Trust filed a motion with the Court asking for the extension on the grounds that the Trustee is currently involved in pending legal proceedings arising out of the sale of the Trust’s rights to all future collagen royalty payments that the Trust would have received from Inamed, LLC for $5.6 million in cash. The purchaser of the royalty rights was BHGV, LLC, a Delaware Limited Liability Company formed by certain Trust beneficiaries. The sale was part of the Trustee’s efforts to liquidate the Trust’s remaining assets.

Please see the Trust’s announcement dated December 26, 2006 and headlined “Trust Announces Sale of Collagen Royalty Rights” which can be found on the Trust website for details of the collagen royalty rights sale.

That sale agreement resulted in legal actions by Inamed against the Trust and the Trustee. The Court agreed that extending the deadline for termination of the Trust to allow for the completion of these legal proceedings before the Trust is terminated is just and reasonable.  The Court entered the Order extending the automatic termination date of the Trust on February 13, 2008. 

As required by the Liquidating Plan of Reorganization, the Trustee has been liquidating the Trust's assets for the benefit of the Trust beneficiaries.

The Trustee’s goal is to make a final liquidating distribution to Trust beneficiaries as soon as practical. The timing and final amount of such a distribution will depend on, among other things, the outcome of the litigation initiated by Inamed and final expenses necessary to conclude the Trust’s activities. An announcement of the amount and timing of cash distributions will be posted on the Trust web site.

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