OP-1 Role in Neurological Development Reported in Studies Published in Cell

 Hopkinton, MA, July 28, 1997--Research published in the scientific journal Cell indicates that the morphogenic protein OP-1 plays a key role in directing steps in the early development required for the formation of brain tissue, Creative BioMolecules, Inc. (Nasdaq: CBMI) said today. The studies are part of the Company’s program to develop new, morphogenic protein based therapies for the treatment of stroke and neurological disease.

"A growing body of research suggests that understanding the processes that underlie embryonic development may lead to new approaches in treating tissue damage resulting from disease," said Dr. T. Kuber Sampath, Scientific Director at Creative BioMolecules and an author on the paper. "These studies advance our knowledge of brain tissue formation by demonstrating that OP-1 works in concert with other signaling molecules to trigger neurological development. Along with additional ongoing research, these studies are providing the scientific basis that may lead to the development of new therapeutics for neurological disorders."

In the study, researchers looked at cells in an animal embryo that proceed to form the brain and central nervous system. The research indicates that OP-1 acts directly on these neurological cells, modifying their response to local morphogenic signals. This response causes the cells to undergo differentiation, enabling them to form the structure that leads to the development of specific components of the central nervous system.

The study was led by Dr. Marysia Placzek at the National Institute for Medical Research in the United Kingdom and conducted in cooperation with researchers at Columbia University and Creative BioMolecules. The research was published in the July 25, 1997 edition of Cell.

Creative BioMolecules has established a substantial proprietary position in the field of morphogenic proteins, including OP-1. The Company’s morphogenic protein programs include a late stage development effort in orthopaedic reconstruction with Stryker Corporation as well as ongoing research to develop renal disease treatment with Biogen, Inc., and proprietary new therapies for stroke and other neurological disorders.

This news release includes 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.

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For additional information on this news release, please contact the Company.

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