Boston Scientific Announces Definitive Agreement To Acquire Enteric Medical Technologies, Inc.

Acquisition To Expand Endosurgery Product Offerings In The GERD Market

Boston Scientific Corporation (NYSE: BSX - News) announced today that it has entered into a definitive agreement to acquire Enteric Medical Technologies, Inc. (EMT), a privately held company based in Foster City, CA. EMT designs, manufactures and markets Enteryx(TM), a liquid polymer technology for the treatment of gastroesophageal reflux disease (GERD). Closing of the transaction is subject to customary conditions, including EMT stockholder approval. Holders of more than two-thirds of each class of EMT's outstanding stock have entered into agreements to vote their shares in favor of the acquisition. Terms of the agreement were not disclosed. The acquisition is not expected to be dilutive to operations in 2002.

The Enteryx technology is a patented liquid polymer delivered by injection through an endoscope into the muscle of the lower esophageal sphincter. The polymer solidifies into a sponge-like material when it is injected into the tissue, augmenting the lower esophageal sphincter and helping to prevent or reduce reflux of gastric acid into the esophagus. The procedure takes approximately 30 minutes and is done under intravenous sedation.

With approximately 15 million chronic GERD sufferers in the U.S. alone, it is estimated that between 10 to 15 percent of these patients can be served by less-invasive therapies. In 2000, $8.3 billion was spent in the U.S. on prescription drugs that treat heartburn, the primary symptom of the disease. This represented a 26 percent increase over prescription sales in 1999. Nearly $1 billion was spent on surgical procedures in 1999, an increase of 26 percent over 1998 as a result of the rapid adoption of laparoscopic techniques.

The Enteryx technology, which has received the CE Mark and is commercially available in Europe, is the subject of a pre-market approval application currently under review by the U.S. Food and Drug Administration. Post- closing, EMT will become part of Boston Scientific's Endosurgery group, and Enteryx will be marketed through the Microvasive® Endoscopy division.

"The acquisition of Enteric Medical Technologies provides us with a significant opportunity to participate in the GERD market using an endoscopic management approach," said Michael Phalen, President, Microvasive Endoscopy. "We believe the Enteryx technology platform could become a significant non-pharmaceutical solution for physicians treating patients with this disease."

"We are extremely pleased with the acquisition of EMT by Boston Scientific," said David E. Silverman, M.D., Chief Executive Officer of EMT. "Their global leadership in the endoscopy market will enhance the success of the Enteryx technology."

EMT was founded by Alan Stein, Ph.D. and David E. Silverman, M.D. to develop minimally invasive medical devices for the treatment of chronic gastrointestinal diseases. EMT's investors include Pequot Ventures, the direct investment entity of Pequot Capital Management Inc, Nikko Synergy Ventures, Saratoga Ventures and Montreux Equity Partners.

Boston Scientific Corporation is a worldwide developer, manufacturer and marketer of medical devices. The Company's products are used in a broad range of interventional medical specialties. Its Microvasive Endoscopy division is a leading global provider of interventional gastrointestinal devices for endoscopists.

This press release contains forward-looking statements. The Company wishes to caution the reader that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, risks associated with new product development and commercialization, clinical trials, regulatory approvals, intellectual property, competitive offerings, the Company's overall business strategy, and other factors described in the Company's filings with the Securities and Exchange Commission.

SOURCE: Boston Scientific Corporation