Press Release - Exhibit 99.1 BioSyntech Receives Funding from Business Development Bank of Canada LAVAL, Quebec--(BUSINESS WIRE)--June 28, 2002--BioSyntech Inc. (OTCBB: BYSI - News), a developer of tissue repair therapies and innovative drug delivery vehicles, today announced the receipt of the funds associated with the debt/equity financing announced April 3, 2002. The Company has received the $2.5 million (Canadian) as per the agreement with BDC Venture Capital, a division of the Business Development Bank of Canada (BDC). The $2.5 million financing, along with the $1.2 million (Canadian) credit facility being negotiated with a major chartered bank in Canada, and the $1 million (Canadian) in the Company's reserves, is expected to provide sufficient financing to allow operations well past the end of calendar 2003. Dr. Amine Selmani, BioSyntech's chief executive officer, commented. "Our capital structure has been dramatically improved in the last 90 days, and BioSyntech now stands well-positioned to bring its products to market, first in Europe and subsequently in North America. I am confident that in 2003 we can bring to market our more advanced products, such as BST-InPod(TM) early 2003 with an estimated market size of well over 130 million patients and BST-Fill(TM) mid 2003 with a projected market size in excess of 12 Million patients. We will simultaneously accelerate the clinical development of other BST-Gel(TM) promising formulations such as BST-CarGel(TM) and the drug delivery therapies in various cancer treatment, both in Canada and in Europe. This financing will provide the necessary funds to operate through that timeframe and to begin the marketing of our products at that time." About Business Development Bank of Canada (BDC) "BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company's development cycle, from start-up through expansion, with a focus on technology-based businesses that have high growth potential and that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has to date invested in more than 400 different companies. It currently manages over $350 million in venture capital assets and more than 80% of its portfolio is invested in the areas of biotechnology, medical and health related technology, telecommunications, information technology and electronics." About BioSyntech BioSyntech Inc. is an ISO 9001:2000 certified, advanced biomaterials company specializing in tissue repair and in the delivery of therapeutic products. BioSyntech is composed of two operating divisions: tissue repair and therapeutic delivery. The Company's patented platform technology BST-Gel(TM), is a multifunctional injectable thermo-sensitive and self-forming hydrogel that can be used for tissue repair or for targeted delivery of therapeutic agents. Thesebiomaterials are biocompatible, biodegradable, muco adhesive and provide significant advantages in specialized medical fields including, Oncology, Orthopedics, Rheumatology, Reconstructive Surgery, Tissue Engineering, Vaccines and many other therapeutic areas. For additional information, visit www.biosyntech.com. This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Potential risks and uncertainties include timeframes and expectations for completing clinical trial research, receiving positive results from the various clinical trials, submitting results to various regulatory authorities, receiving approval for products and successfully marketing products to potential customers. These risks and factors are detailed from time to time in the company's SEC filings. Contact: BioSyntech Inc. Alain Geahchan, 503/968-1600 or Cell: 514/232-2213 geahchan@biosyntech.com or RCG Capital Markets Group, Inc. Retail: Michael Bailey and Frank Perri, 480/675-0400 or Media: Jeff Stanlis, 480/675-0400
