Orquest Announces European Approval for Unique Bone Substitute Product

MOUNTAIN VIEW, CALIF. (March 30) BW HEALTHWIRE -March 30, 1999--Orquest today announced that it been awarded the CE Mark certification for its Healos(TM) Bone Graft Substitute product. The CE Mark allows Orquest's Healos product to be marketed and sold throughout the European Community.

Healos is the only synthetic material that has shown comparable results to autograft in a controlled clinical study for spinal fusion. Healos is a mineralized collagen material that is designed to replace autograft, the patient's own bone used in spinal fusion and other bone grafting procedures. Healos supports bone regeneration and is remodeled into new bone as part of the natural healing process.

Michael Estes, President and Chief Executive Officer of Orquest stated, "We are very proud of receiving the CE Mark as it represents Orquest's first product approval in a broad portfolio of products being developed for the field of orthobiologics. Orquest looks forward to commercializing Healos in Europe with its distribution partner."

Roughly 200,000 spinal fusion procedures are performed in Europe each year to relieve chronic back pain. The estimated European market for bone grafting products used in spinal fusion procedures is $240 million. In addition to Healos, Orquest has also developed a unique bone grafting material that combines Healos with a bone inductive protein. Finally, Ossigel(R), an injectable product designed to accelerate the healing of bone fractures, is currently in clinical trials in the U.S. and Europe.

Orquest is an innovative medical technology company dedicated to setting new standards of care in orthopedics through biological solutions. These solutions come from the fast growing field of orthobiologics, a technology revolution that is shifting the focus of orthopedics from traditional metal implants to biologically-based products. With two platform technologies and several novel products in the clinic, Orquest is the clear leader in orthobiologics. The Company's products encompass the growth market segments in orthopedics: spine, fracture management, and cartilage repair.

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CONTACT: Orquest, Inc.

          Peter A. Weissman, 650/237-4843 

pweissma@orquest.com

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