LA JOLLA, Calif., June 30 /PRNewswire/ -- Advanced Tissue Sciences, Inc. (Nasdaq: ATIS) today announced that Smith & Nephew plc, the Company's partner in its Dermagraft and cartilage joint ventures, has increased its equity ownership position. This more than doubles Smith & Nephew's ownership position. A $10 million loan from Smith & Nephew related to the Dermagraft Joint Venture was converted into approximately 2.8 million shares of the Company's common stock as allowed under the terms of the loan agreement. The loan was due and payable in less than a year. The conversion increases Smith & Nephew's interest in the Company to approximately 8%.

Advanced Tissue Sciences is a tissue engineering company utilizing its proprietary core technology to develop and manufacture human-based tissue products for tissue repair and transplantation. The Company has two joint ventures with Smith & Nephew. The first covers the application of Advanced Tissue Sciences' tissue engineering technology for skin wounds and includes Dermagraft(R) for the treatment of diabetic foot ulcers, TransCyte(TM) for the temporary covering of second and third-degree burns and future developments for venous ulcers, pressure ulcers, burns and other non-aesthetic wound care treatments. The second joint venture is developing tissue-engineered orthopedic cartilage, initially focusing on the repair of cartilage in knee joints. The Company also has a strategic alliance with INAMED Corporation for the development and marketing of several of Advanced Tissue Sciences' human-based, tissue-engineered products for aesthetic and certain reconstructive applications.

SOURCE Advanced Tissue Sciences, Inc.