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Ortec To Trade on Bulletin Board

Business Editors & Health/Medical Writers
BIOWIRE2K

NEW YORK--(BUSINESS WIRE)--Aug. 30, 2002--Ortec International,
Inc. announced today that NASDAQ has denied Ortec's appeal for
continued inclusion on the NASDAQ Small CAP Market. Ortec was advised
last evening after the close of the Market, that effective with the
open of business on August 30, Nasdaq will delist the Company's
securities from the NASDAQ Stock Market. Accordingly, Ortec securities
will begin to trade on the OTC Bulletin Board.
Steven Katz, Ph.D., Chairman and CEO, said, "Nasdaq's denial of
our appeal necessitating our transferring to the OTC Bulletin Board
does not impact our ability to execute our business plan and near term
milestones. We will continue on the path of completing our venous
pivotal clinical trial this year and filing of our Pre-Market Approval
(PMA) application in the 1st quarter of 2003 and the consummation of a
corporate partner deal."

About Ortec International, Inc.

Ortec International, Inc. is a tissue engineering company involved
in the commercialization of a proprietary and patented technology to
stimulate the repair and regeneration of human tissue. Ortec's current
focus is the application of its OrCel(TM) (Bi-layered Cellular Matrix)
to heal chronic and acute wounds. Ortec is composed of a collagen
sponge seeded with allogeneic epidermal and dermal cells. These cells
secrete growth factors and cytokines normally found in acute human
wounds and are believed to have a beneficial role in promoting tissue
repair. In addition to having received FDA approvals during 2001 for
the treatment of Epidermolysis Bullosa and donor sites in burn
patients, a pivotal clinical trial is ongoing in venous ulcers and the
FDA has granted Ortec approval to initiate a pivotal trial in diabetic
foot ulcers. Ortec believes that its platform technology may extend to
the regeneration of other human tissue such as tendons, ligaments,
cartilage, bone, muscle and blood vessels. For more information, visit
Ortec's website http://www.ortecinternational.com

Certain statements made in this news release that express the
belief, potential anticipation or expectations, as well as other
statements which are not historical fact, and statements relating to
the clinical trials and their results, design, FDA product approvals
or other marketing approvals, features, functionality and performance
insofar as they may apply prospectively, are "forward looking"
statements within the meaning and pursuant to the Safe Harbor
provisions of the Securities Litigation Reform Act 1995 and involve
risks and uncertainties. The Company's actual results may differ
significantly from the results discussed in this news release or in
other "forward looking" statements presented by management. Factors
that might cause such a difference include, but not limited to,
development by the Company's competitors of new technologies or
products that are more effective than the Company's risks of failure
of clinical trials, dependence on and retention of key personnel,
protection of proprietary technology, compliance with U.S. Food and
Drug Administration regulations, continued availability of raw
material for the Company's products, availability of product liability
insurance in the event of commercialization of the Company's products,
ability to effect transition from pilot-scale manufacturing to
large-scale commercial production of products, uncertainty as to the
availability of additional capital on acceptable terms, if at all, and
the demand for the Company's products, if and when commercially
available.

--30--rr/cgo*

CONTACT: Ortec International, Inc.
Ron Lipstein, 212/740-6999, ext. 204

Worry is interest paid on trouble before it comes due.