Singapore - March 19, 2003

Biosensors to Sell Everolimus Eluting Stent Program to Guidant

Biosensors International today announced that the Company has entered into a definitive agreement to sell certain assets of its everolimus eluting stent program to Guidant Corporation, based in Indianapolis, Ind. Under the terms of this agreement, Biosensors retains exclusive rights to commercialize other drugs and drug eluting stent coating technologies that it has under development, including its fully biodegradable drug eluting stent program. The agreement with Guidant provides an exclusive worldwide license to Biosensors' bioabsorbable polymer formulation technology in the field of everolimus eluting stents, complementing Guidant's exclusive license for the use of everolimus in the vascular system. It also provides a non-exclusive license to utilize Biosensors' bioabsorbable polymer formulation technology with other drugs in drug eluting stents controlled by Guidant. Guidant has the option of commercializing the Biosensors everolimus eluting Challenge stent that has been used in Biosensors' clinical trials. "We are pleased to reach this agreement with Guidant Corporation," commented Mr Yoh-Chie Lu, President and CEO of Biosensors International. "We view Guidant as the logical partner to help drive our everolimus research to successful commercialization, and fully expect that this arrangement will be only the first of many licensing agreements that will bring to the clinical marketplace the broad, diverse range of exciting drug and polymer compound technologies that we are developing."

Preliminary results presented from the FUTURE I first-in-man clinical trial utilizing everolimus demonstrated no restenosis in 11 patients receiving the drug eluting stent at six-month angiographic follow-up. Additional results from the trial will be presented by Dr. Eberhard Grube of the Herzzentrum Siegburg in Germany, principal investigator of the study, at the American College of Cardiology conference taking place March 30 - April 2, 2004 in Chicago.

"The early FUTURE I clinical results were highly promising," said Dr. Grube. "The use of a bioabsorbable polymer to deliver drugs from a stent may offer unique clinical advantages. I look forward to analysing data from the larger FUTURE II trial, which we have recently completed enrollment."

Under the agreement, Biosensors will receive an initial payment of $20 million for the asset purchase and licensing fee and expects to receive additional payments based on the performance of Biosensors' everolimus stent products in clinical trials. Guidant will also make royalty payments on future sales of products that utilize Biosensors' coating technology and/or its everolimus eluting stents. Guidant and Biosensors have received clearance for the transaction from the Federal Trade Commission under the United States Hart-Scott-Rodino Antitrust Improvements Act, and the agreement will take effect immediately.

The Spartan Group LLC and US Bancorp Piper Jaffray acted as advisors to Biosensors.

About Biosensors International

Biosensors focuses its research in the fields of new drug discovery, stent design and local drug delivery coating development for interventional cardiology markets worldwide. Biosensors International is a subsidiary of Biosensors International Group, and seeks to become a leading company specializing in cardiovascular technology. Its manufacturing facilities are certified by world authorities such the FDA, TGA, ISO and CE Mark.