For Immediate Release:

Contact: Allen & Caron Inc   CLOSURE Medical Corp
  Rob Weir (investors) Len Hall (media) Robert V Toni, CEO
  (212) 691-8087 (949) 474-4300 Benny Ward, CFO
  joe@allencaron.com len@allencaron.com (919) 876-7800

CLOSURE MEDICAL REPORTS FIRST QUARTER RESULTS

EPS Shows Significant Improvement,
Initial Shipments of New Products and Clinical Trials Move Forward on Future Product Lines

RALEIGH, NC (April 23, 2002) . . . CLOSURE Medical Corporation (Nasdaq: CLSR), a leader in medical tissue adhesives for wound closure and wound care, announced today that its earnings increased significantly to $0.06 per share, up from $0.02 in the first quarter of 2001. The increase in earnings was due primarily to an increase in revenues from $3.9 million in the first quarter of 2001 to $5.4 million this quarter, an improvement of 38 percent.

President & CEO, Robert V Toni, commented, “We are pleased to be in the black for the sixth quarter in a row. The majority of revenues in the first quarter came from DERMABOND Topical Skin Adhesive, which grew steadily on a year-to-year basis. We also made initial stocking shipments of our liquid bandage product to our partner Johnson & Johnson Consumer Products Company. Johnson & Johnson began the launch of this product under its own brand name during the quarter. The market entry of SOOTHE-N-SEAL® adhesive has been building slower than anticipated; however, gains in other product lines support the increase in revenues over the same period last year.”

Toni continued, “We made progress on two clinical trial projects during the first quarter: (1) a high viscosity version of DERMABOND adhesive for use in areas where it is more difficult to apply the product without dripping, and (2) our Liquid Occlusive Dressing for the treatment of bedsores and skin tears, a product which we are partnered with Johnson & Johnson Wound Management. We began enrolling patients for the DERMABOND adhesive trial and, as of the end of last week, were nearly 50 percent complete in that process. The Liquid Occlusive Dressing is in the pre-enrollment stages of a pilot study. We are also investigating products for other indications and may launch additional clinical studies this year.”

Toni also noted that Abbott Laboratories has begun to market, distribute and launch the Company’s veterinary product line, NEXABAND®, in the United Kingdom and should be launching in the United States during the second quarter. The Company looks forward to its veterinary products being more widely distributed under this strategic arrangement with Abbott.

CFO, Benny Ward, said that the Company’s financial position was further strengthened during the quarter. At March 31, 2002, the Company had cash and investments of $12.8 million, a current ratio of 3:1, no long-term debt and stockholders’ equity of $18.4 million. He noted that profits are advancing even faster than revenues due to the benefits of volume production and the more efficient use of internal resources over a larger revenue base. He continued, “We anticipate that our first quarter net margin of 16 percent approximates current projected net margins for the year and will be driven primarily by our investments in R&D.”

About CLOSURE Medical Corporation
CLOSURE Medical Corporation is a global leader in the development, manufacture, and commercialization of medical adhesive brands for wound closure and care based on its proprietary medical grade cyanoacrylate technology. CLOSURE’s proprietary technology has customized the physical and chemical properties of cyanoacrylates to develop medical adhesive formulations to close and seal topical skin wounds and incisions.

For additional information on CLOSURE Medical visit its website at www.closuremed.com or visit the "Clients" section of the Allen & Caron website at www.allencaron.com.

This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to the early stage of commercialization of the Company’s products; the progress of its research and development programs for future products; the need for regulatory approval and effects of governmental regulation; technological uncertainties; the satisfactory conclusion of negotiations with, and dependence on marketing partners, and dependence on patents and trade secrets, as well as those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2001, filed with the Securities and Exchange Commission. Although the Company believes that the expectations in the forward-looking statements are reasonable, the Company cannot guarantee such results. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Financial Tables Follow

CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)

 
THREE MONTHS ENDED
 
March 31,
 
2002
2001
         
Product sales
$ 5,155
$ 3,738
License and product development revenues
245
179
Total revenues
5,400
3,917
Cost of products sold
1,663
1,167
Gross profit
3,737
2,750
 
Research, development and regulatory affairs expenses
1,600
1,280
General and administrative expenses
1,373
1,330
Total operating expenses
2,973
2,610
 
Income from operations
764
140
Interest income, net
98
129