Angiotech files Second Amended and Restated CCAA Plan of Compromise or Arrangement

Angiotech Pharmaceuticals, Inc. ("Angiotech" or the "Company") today announced that in connection with its previously announced creditor protection proceedings under the Companies' Creditors Arrangement Act (Canada), it and certain of its subsidiaries (the "Angiotech Entities") filed with the Supreme Court of British Columbia (the "Court") the Second Amended and Restated CCAA Plan of Compromise or Arrangement concerning, affecting and involving the Angiotech Entities (the "Amended Plan").

Under the terms of the Amended Plan, the deadline (the "Election Deadline") for affected creditors of the Angiotech Entities (the "Affected Creditors") (other than the holders of the Company's 7.75% Senior Subordinated Notes due 2014 (the "Subordinated Noteholders")) with claims greater than $5,000 but less than or equal to $31,250 to elect to receive $5,000 in cash in satisfaction of their claims (each a "Cash Election") has been extended to the date that is 10 days after the sanctioning of the Plan by the Court. The extension will give Affected Creditors additional time to more fully consider their options following the previously-announced meeting of our Affected Creditors (the "Creditors' Meeting") to be held on April 4, 2011. In addition, Affected Creditors, other than Subordinated Noteholders, with claims greater than $31,250 may now elect to receive cash, at $0.16 on the dollar up to a maximum of $24,000, in satisfaction of their claims in lieu of receiving new common shares of Angiotech (the "New Common Shares") they would otherwise have been entitled to receive under the Plan (a "Liquidity Election"). Qualifying Affected Creditors may make Liquidity Elections up to the Election Deadline.

The Amended Plan also removes the additional payment of 3.5% of New Common Shares issuable on implementation of the Amended Plan to those Subordinated Noteholders who, prior to November 30, 2010, executed or consented to the Recapitalization Support Agreement dated October 29, 2010 between the Angiotech Entities and 73% of Subordinated Noteholders. The 3.5% of New Common Shares is now allocated pro rata to all Affected Creditors, including all Subordinated Noteholders, based on the amount of their Affected Claims. As a result, all Subordinated Noteholders will receive their pro rata share of up to 96% of the New Common Shares to be issued upon implementation of the Amended Plan, subject to dilution in respect of New Common Shares issued to Affected Creditors who are not Subordinated Noteholders.

As previously announced, the Creditors' Meeting will take place on April 4, 2011. If the Amended Plan is approved by the required majority of the Affected Creditors at the Creditors' Meeting, the Angiotech Entities intend to bring an application on April 6, 2011 before the Court to seek a sanctioning of the Amended Plan by the Court.