Research Shows That OP-1 May Play an Important Role in the Treatment of Stroke

Hopkinton, MA, July 16, 1997--Creative BioMolecules, Inc. (Nasdaq: CBMI) announced today the results of preclinical studies with a potential new stroke therapy. These preclinical studies have indicated the ability of this therapy to enhance recovery of motor function after stroke in an animal model. Motor function recovery is one of the important predictors of outcome in stroke rehabilitation. The findings, reported by Dr. Seth Finklestein of Massachusetts General Hospital and Harvard Medical School, may lead to the development of an important therapy for stroke patients.

In the study, Dr. Finklestein measured the neurological recovery of rodents following a stroke. Animals treated with OP-1 twenty-four hours after the stroke recovered approximately 80 percent of motor function within the first week. This was contrasted by the control group, which experienced a recovery of approximately 50 percent of motor function within one month. OP-1 is one of a family of morphogenic proteins in which Creative BioMolecules has established a substantial proprietary position.

Dr. Finklestein commented regarding these findings, "While still in the early stages of development, an OP-1 therapy may in the future provide physicians with a way of enhancing a patient’s recovery from stroke. If similarly successful in human clinical trials, this would be a new tool in the treatment of stroke and represents an exciting new clinical avenue of research."

Scientists at Creative BioMolecules and Harvard Medical School are working closely with research teams at academic institutions around the country to evaluate the potential applications of this new therapy. The preclinical data reported represents preliminary findings and will be confirmed in collaboration with other research teams. Creative BioMolecules is actively researching this product for the treatment of stroke as well as other neurological diseases.

The statements in this news release are not historical facts and include forward-looking statements that involve risks and uncertainties. Factors which could cause actual results to differ from the Company’s expectations include, without limitation, the course of the research and development programs, including the achievement of development milestones by the Company and completion of clinical testing, the impact of competitive products, the timely receipt of regulatory clearances required for clinical testing, manufacturing and marketing of products and the other risks and uncertainties detailed from time to time in the Company’s periodic reports.

Creative BioMolecules, Inc. is a discovery and development company focused on proprietary therapeutics for human tissue regeneration and restoration. The Company’s therapeutics are based on proteins that act as signals in initiating and regulating the cellular events involved in tissue and organ formation.

NOTE: Creative BioMolecules, Inc. makes available its latest news releases on the Internet at http://www.prnewswire.com or by facsimile by calling Fax On Demand at 1-800-758-5804, extension 212213.

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