N E W S R E L E A S E For information contact: Joni Morford, Communicore 714/721-8081 jmorford@communicore.com ORQUEST NAMES NEW CEO FOR IMMEDIATE RELEASE.....December 2, 1996.....Mountain View, Calif.....S. Mitchell Seyedin, Ph.D., founder of Orquest, Inc., announced today the appointment of Michael S. Estes, Ph.D., as President and Chief Executive Officer. Seyedin, who served in the post temporarily while a search for a permanent CEO was ongoing, remains as Chairman of the Board and Chief Scientific Officer and will continue to guide the development of Orquest's core technology. "We are delighted that Mike Estes has joined us. His long and varied experience in the healthcare industry is a good match for Orquest at this stage of our development. In particular, his skills in growing advanced technology businesses from concept through commercialization will be essential to our long-term success," Seyedin said. Estes' long career with American Hospital Supply Corporation began soon after he earned his Ph.D. in Theoretical and Applied Mechanics from West Virginia University. His series of increasingly senior positions provides him with extensive experience in research and development, manufacturing, strategic business planning, sales, marketing, and corporate development. Prior to his appointment as Group Vice President of Baxter Healthcare in 1990, he served as president of American's Cardiovascular Surgery Company, which included the Edwards, Bentley, and Haemonetics division. Estes guided this $100 million unit through a series of important milestones, including patent litigation, and became known for his ability to increase profits while reducing costs. As Group Vice President for Baxter he had responsibility for Baxter's cardiovascular business and spent 18 months in Japan as President of Baxter Japan. "I am enormously excited by the prospect of working with the Orquest team in an area of medicine where new technology has such enormous potential to improve patient outcomes and reduce costs," Estes said. "I intend to bring all of my experience working within entrepreneurial divisions of large corporations to a setting where such experience can have great impact." Orquest was founded in 1994 to develop, manufacture, and commercialize bioengineered matrices for the regeneration of bone and cartilage tissue in targeted indications. The Company currently has two orthopedic products in development: Healos¨, a synthetic bone graft alternative, and Ossigelª, a matrix for accelerated fracture healing. Orquest is a privately held corporation based in Mountain View, California. End of document