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Proxy Organizer Responds to Most Recent Improper Actions by Artes Medical

^{Published on 2008-11-25 07:40:56 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Dr. H. Michael Shack ("Dr. Shack" or "Proxy Organizer") released a necessary response to most recent events announced by Artes Medical Inc., (Nasdaq: ARTE) specifically about the dismissal of most of the Company's staff and the mention of possible liquidation.

Dr. Shack commented, "We continue to forge forward and attempt to meet with the Board of Directors of Artes Medical to resurrect shareholder value. Our game plan remains the same: protect and preserve the status quo, reorganize, and become profitable. We believe that our financing strategy is a solution to keeping the Company alive and that liquidation is not a viable option. We have worked diligently in the last few months to prepare Artes for a successful turnaround, by having a committed roster of new directors along with a new and highly qualified management team that is prepared to grow Artes into a profitable medical device company."

Dr. Shack continued, "We will take all necessary measures to make sure our financing strategy and proposed path-to-profitability are heard so a restructured board can revive Artes and undo the errors of the current board and management. We are tired of the board's failure to act swiftly and boldly and believe that due to their own interests nothing has been done to protect the shareholders. In contrast to current management, the proxy group believes failure is not an option and most actions and statements of the current management team has caused undue pressure on Artes' share price. We do not believe now is the time for shareholders to throw in the towel, but rather back our team and proposals so we can restart Artes Medical into a profit generating entity. Considering the terrible loss in recent shareholder value, time is of the essence and it is of utmost importance for shareholders to remain steadfast and join our group to support the only plan that places shareholders' interests first. We'll ensure your voice is heard and that building shareholder value is our top priority."

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that are based on the Proxy Organizer's current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. These forward-looking statements represent beliefs and assumptions only as of the date of this document, and the Proxy Organizer assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.

IMPORTANT ADDITIONAL INFORMATION

On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the SEC in connection with the solicitation of proxies for the Artes Medical, Inc. 2008 Annual Stockholders' Meeting (the "Proxy Statement"). The Proxy Organizer has mailed the Proxy Statement to all stockholders. The Proxy Statement contains important information about Artes Medical, Inc. All stockholders are urged to read the Proxy Statement carefully. Stockholders can obtain copies of the Proxy Statement and other documents filed by the Company and Proxy Organizer with the SEC for free at the SEC's website at [ www.sec.gov ]. All proxy documents are also available in German language upon request from Mackenzie Partners at (212) 929-5500 or via e-mail at [ proxy@mackenziepartners.com ]. The Proxy Statement is also available in German language on the internet at [ www.artesproxy.com ].

The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer's Proxy Statement.