Exhibit 99.1
FOR IMMEDIATE RELEASE
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Contact: Steven T. Sobieski
Chief Financial Officer
LifeCell Corporation
908/ 947-1100
LIFECELL ANNOUNCES LITIGATION
BRANCHBURG, NJ (JANUARY 5, 2001): LifeCell Corporation (Nasdaq: LIFC) announced
today that, Special Situations Fund III, L. P., Special Situations Cayman Fund,
LP and Special Situations Private Equities Fund, L.P. had filed a complaint in
United States District Court for the Southern District of New York against
LifeCell, Gruntal & Co., L.L.C. and Prudential Securities, Inc. The complaint
alleges that LifeCell, Gruntal and Prudential violated Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and were
liable under New York common law by making purportedly false and misleading
statements to the plaintiffs in connection with LifeCell's private placement of
common stock and seeks damages in an unspecified amount. Gruntal and
Prudential's Vector Healthcare Group acted as placement agents in LifeCell's
private placement which closed in October, 2000. LifeCell indicated that it
believes the lawsuit has no merit and it intends to vigorously defend the
lawsuit.
LifeCell develops and markets biologic solutions for the repair, replacement and
preservation of human tissue. Its core preservation technology removes all
cells from the tissue without damaging the essential biochemical and structural
components necessary for normal tissue regeneration. The Company currently
markets three products based on this technology: AlloDerm(R) for the plastic
reconstructive and burn markets through our direct sales force and for the
dental market through BioHorizons, Inc.; Cymetra, a version of AlloDerm for the
plastic reconstructive and dermatology markets through LifeCell's direct sales
force and a co-promotion agreement with Obagi Medical Products; and Repliform
for the urology and gynecology markets through a marketing partnership with
Boston Scientific Corporation. LifeCell's product development programs include
the use of small diameter blood vessel grafts produced by the Company as an
alternative to blood vessel grafts taken from the patient, orthopedic
applications of its technology, Thrombosol, a formulation for extended storage
of platelets and technologies to enhance the storage of red blood cells.
CERTAIN OF THE STATEMENTS CONTAINED IN THIS NEWS RELEASE ARE "FORWARD-LOOKING
STATEMENTS" (AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995). WHILE THESE STATEMENTS REFLECT THE COMPANY'S CURRENT BELIEFS AND ARE
BASED ON ASSUMPTIONS THAT THE COMPANY BELIEVES ARE REASONABLE, THEY ARE SUBJECT
TO UNCERTAINTIES AND RISKS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM ANTICIPATED RESULTS. THESE FACTORS INCLUDE THE RISKS DETAILED IN THE
COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DEC. 31, 1999 AND OTHER
REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
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