EXHIBIT 99.1

FROM:                                      FOR:
Swenson NHB Investor Relations             Bio-Vascular, Inc.
1300 Fifth Street Towers, 150 S. 5th St.   2575 University Ave.
Minneapolis, Minn.  55402                  St. Paul, Minn. 55114
Contact-Curt Swenson 612/371-0000          Connie L. Magnuson, CFO  612/603-3700



FOR IMMEDIATE RELEASE

BIO-VASCULAR SIGNS LETTER OF INTENT
TO ACQUIRE JER-NEEN MANUFACTURING CO.

         St. Paul, Minn., June 2 - Bio-Vascular, Inc. (Nasdaq:BVAS) announced
today that it has entered into a letter of intent to purchase all of the
outstanding shares of Jer-Neen Manufacturing Company, Inc. Terms were not
disclosed. Completion of the transaction is contingent upon execution of a
definitive acquisition agreement.
         Jer-Neen is a privately held company located in Lino Lakes, Minn. It is
a value-added manufacturer of precision micro-coils, precision wire forms and
spring components for the medical device industry.
         Bio-Vascular, based in St. Paul, develops, manufactures and markets
proprietary specialty medical products for use in thoracic, cardiac, neuro,
ophthalmic and vascular surgery.

                                     # # # #

06/02/98