Bioject Exercises Series A Preferred Redemption Right

Company Brings Suit to Enforce Right to Redeem 24% of Series A Preferred Stock  
  PORTLAND, Ore., Oct. 1 /PRNewswire/ -- 
Bioject Medical Technologies Inc. (Nasdaq: BJCT), a leading developer of 
needle-free drug delivery systems, today announced that it provided notice to 
redeem 164,950 shares of its Series A Convertible Preferred Stock held by 
Elan Pharmaceutical Investments, Ltd. for approximately $3.45 million. All 
shares of the Series A Preferred Stock currently outstanding are held by Elan 
and the shares to be redeemed represent approximately 24% of the outstanding 
The Series A Preferred Stock accrues dividends at an annual rate of 
9 percent and the preferred stock and all accrued dividends automatically 
convert to Bioject common stock in 2004 at a conversion price of $7.50 a 
share. Accordingly, the practical effect of this redemption is the repurchase 
by Bioject of 460,000 common equivalent shares for $7.50 a share.  
"This opportunity to redeem a portion of the Series A Convertible 
Preferred shares comes at a good time for the company," said Jim O'Shea, 
chairman, president and chief executive officer of Bioject. "We currently have 
the cash resources to fund this redemption; however, to conserve cash, our 
plan is to issue an equivalent number of common shares in the open market at a 
premium to the effective $7.50 redemption price."  
Elan responded to Bioject's notice by disputing Bioject's right to redeem 
this stock at this time and on these terms. To enforce its redemption rights, 
Bioject has filed a lawsuit in U.S. District Court in Oregon seeking an 
injunction and declaratory judgment to compel Elan to abide by the redemption 
provisions in Bioject's articles of incorporation.  
Regarding the dispute with Elan, O'Shea added:  "Our right to redeem these 
shares was specifically negotiated with Elan. The redemption provides 
substantial value to our shareholders including an increase in liquidity, a 
decrease in the concentration of shares held by Elan, and a reduction in the 
annual dividend charge, which, last year was approximately $1.2 million. 
Accordingly, we intend to prosecute this lawsuit vigorously to enforce our 
Bioject Medical Technologies Inc., based in Portland, Oregon, is an 
innovative developer and manufacturer of needle-free drug delivery systems. 
Needle-free injection works by forcing medication at high speed through a tiny 
orifice held against the skin. This creates a fine stream of high-pressure 
fluid penetrating the skin and depositing medication in the tissue beneath. 
The company is focused on developing mutually beneficial agreements with 
leading pharmaceutical and biotechnology companies. Bioject's partners now 
include Amgen and Serono.  
This press release contains forward-looking statements within the meaning 
of the Private Securities Litigation Reform Act of 1995, including statements 
concerning products being developed by the Company, progress in clinical 
evaluations of the Company's products, possible enabling characteristics of 
the Company's products, collaborations with major pharmaceutical and 
biotechnology companies, current research and product development 
collaborations with Amgen and Serono, and clinical research collaborators. 
Such forward-looking statements involve known and unknown risks, uncertainties 
and other factors which may cause the actual results, performance or 
achievements of the company, or industry results, to be materially different 
from any future results, performance, or achievements expressed or implied by 
such forward-looking statements. Readers of this press release are referred to 
the company's filings with the Securities and Exchange Commission, including 
the company's Annual Report on Form 10-K and Form 10-Q for further discussions 
of factors which could affect future results. Forward-looking statements are 
based on the estimates and opinions of management on the date the statements 
are made. The company assumes no obligation to update forward-looking 
statements if conditions or management's estimates or opinions should change.  
More information can be found at Bioject's home page at: .  
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SOURCE  Bioject Medical Technologies Inc.  
-0-                             10/01/2001  
/CONTACT:  Jim O'Shea, Chairman, President & CEO of Bioject Medical 
Technologies Inc., +1-503-639-7221, ext. 565; or Jim Flanagan of IR Strategic 
Advisors, +1-781-863-1333, or, for Bioject Medical 
Technologies Inc./  
/Company News On-Call:  
/Web site:  
CO:  Bioject Medical Technologies Inc.; Elan Pharmaceutical Investments, Ltd. 
ST:  Oregon 
SU:  LAW  
-0- Oct/01/2001 20:47 GMT
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