BioSyntech completes $11 million bought deal



    /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
    INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
    DISSEMINATION IN THE UNITED STATES/

    LAVAL, QC, July 15 /CNW/ - BioSyntech, Inc. (the "Corporation") (TSX:BSY)
is pleased to announce that it has closed its previously announced bought
deal. The syndicate, led by Dundee Securities Corporation, and including
Macquarie Capital Markets Canada Ltd., Versant Partners Inc. and Laurentian
Bank Securities Inc. has purchased an aggregate of 11,000 Units, each
comprised of $1,000 principal amount of subordinated secured convertible
debentures and 2,500 common share purchase warrants (the "Warrants"),
representing aggregate gross proceeds of $11,000,000 to the Corporation. The
Corporation has also granted to the underwriters an over-allotment option,
exercisable from time to time in the 60 days following closing of the
offering, to purchase up to an additional 1,650 Units to cover
over-allotments, for additional gross proceeds of up to $1,650,000.
    The 12% subordinated secured convertible debentures (the "Debentures")
mature on December 31, 2009 and are convertible into common shares at any time
prior to maturity at a conversion price of $0.20 per share (the "Conversion
Price"). Each whole Warrant is exercisable for a period of 5 years from the
closing of the offering at a purchase price of $0.22 per share.

    THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY THE SECURITIES, NOR SHALL THERE BE ANY SALE OF
THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements and information
which are subject to material risks and uncertainties. Such statements are not
historical facts and are based on the current expectations of management. You
are cautioned that such statements are subject to a multitude of risks and
uncertainties that could cause actual results, future circumstances, or events
to differ materially from those projected in the forward-looking information.
These risks include, but are not limited to, those associated with our
capacity to finance our activities, the dilution for existing shareholders
resulting from such financings, the adequacy, timing, and results of our
clinical trials, the regulatory approval process, competition, securing and
maintaining corporate alliances, market acceptance of the Corporation's
products, the availability of government and insurance reimbursements for the
Corporation's products, the strength of intellectual property, the success of
research and development programs, reliance on subcontractors and key
personnel, and other risks and uncertainties detailed from time-to-time in our
filings with the Canadian securities commissions.
    Readers should not place undue reliance on the forward-looking
information, given that (i) our actual results could differ materially from a
conclusion, forecast or projection in the forward-looking information, and
(ii) certain material factors or assumptions which were applied in drawing a
conclusion or making a forecast or projection as reflected in the
forward-looking information, could prove to be inaccurate. Additional
information is contained in the Corporation's annual report and other
documents filed from time to time with the Canadian securities commissions
which are available at www.sedar.com. These statements speak only as of the
date they are made, and we assume no obligation to revise such statements as a
result of any event, circumstance or otherwise, except in accordance with law.

    %SEDAR: 00020217EF




For further information:

For further information: Claude LeDuc, President and CEO, BioSyntech
Inc., (450) 686-2437; François Michaud, CFO, BioSyntech Inc., (450) 686-2437

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BIOSYNTECH, INC.

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