EXIBIT 99.1


                                                                COMPANY CONTACT:
                                                         BIOSPHERE MEDICAL, INC.
                                                             Robert M. Palladino
                                                        Executive Vice President
                                                     and Chief Financial Officer
                                                                    781-681-7925





           BIOSPHERE MEDICAL ANNOUNCES LAWSUIT BY EUROPEAN DISTRIBUTOR
           -----------------------------------------------------------


ROCKLAND,  Mass. - January 27, 2003 - BioSphere Medical, Inc. (Nasdaq:  BSMD), a
medical device company that is pioneering the use of bioengineered  microspheres
to treat hypervascularized  tumors and vascular malformations by occluding their
blood supply,  reported  today that its French  subsidiary,  BioSphere  Medical,
S.A.,  has received  notice from Terumo  Europe,  N.V. that Terumo has initiated
legal  proceedings in the Commercial Court of Pontoise,  France alleging that it
suffered damages from a purported  termination of the  distribution  contract by
BioSphere Medical,  S.A.

BioSphere  Medical S.A. and Terumo Europe entered into a distribution  agreement
in January 2002 pursuant to which Terumo Europe became the exclusive distributor
of  BioSphere   Medical,   S.A.   EmboSphere(R)   Microsphere  and  EmboGold(TM)
Microsphere products in certain countries of Europe.

"We strongly  believe that Terumo's  allegations are without merit and we intend
to  vigorously  defend the claims it has made against us" stated Paul A. Looney,
BioSphere  Medical's  president and chief executive officer.  "We do not believe
that a termination of our relationship with Terumo, if it occurred,  would be an
interruption  to our expected  growth in Europe.  We are committed to increasing
our  European  marketing  presence and brand name  recognition  through a strong
direct sales force and distributor network."

ABOUT  BIOSPHERE  MEDICAL,  INC.
BioSphere Medical, Inc., based in Rockland,  Massachusetts,  is a medical device
company  focused  on  embolotherapy,   the  treatment  of  tumors  and  vascular
malformations by occluding their blood supply. The Company is pioneering the use
of  patented  and  proprietary  bioengineered  microspheres  as a new  class  of
embolics.  BioSphere Medical has received approvals in the United States, Canada
and Australia which allow the Company to sell Embosphere(R) Microspheres for use
in general embolization procedures,  including uterine fibroid embolization, and
has also received CE Mark approval in the European Community.

CAUTIONARY STATEMENT REGARDING  FORWARD-LOOKING  STATEMENTS - This press release
contains forward-looking statements within the meaning of the Private Securities
Litigation  Reform  Act  of  1995,  including  statements  with  respect  to the
company's expectations that it will successfully market and sell its products in
Europe through its sales and marketing  strategies.  The Company uses words such
as "plans," "seeks," "projects," "believes," "may," "anticipates,"  "estimates,"
"should'" and similar expressions to identify these forward-looking  statements.
These statements are subject to risks and  uncertainties  and are based upon the
Company's beliefs and assumptions.  There are a number of important factors that
may affect the Company's actual  performance and results and the accuracy of its
forward-looking  statements,  many of which are beyond the Company's control and
are difficult to predict.  These important factors include,  without limitation,
risks  relating  to:  the  failure  of  the  Company  and  its  distributors  to
successfully market and sell the company's products;  the failure of the Company
to achieve or  maintain  necessary  regulatory  approvals,  either in the United
States or  internationally,  with  respect  to the  manufacture  and sale of its
products; the failure of the Company to successfully develop,  commercialize and
achieve  widespread  market  acceptance of the  Embosphere(R)  Microspheres  and
EmboGold(TM) Microsphere technologies for uterine fibroid embolization, targeted
liver  embolization  and other  applications;  risks  relating to the  Company's
ability to obtain and maintain patent and other  proprietary  protection for its
products; the absence of or delays and cancellations of, product orders; delays,
difficulties  or  unanticipated  costs  in the  introduction  of  new  products;
competitive pressures; the inability of the Company to raise additional funds to
finance  the  development,  marketing,  and sales of its  products;  and general
economic  conditions.  These risk  factors are further  described in the section
titled  "Certain  Factors That May Affect  Future  Operations"  in the Company's
Current  report on Form 10-Q for the quarter ended  September 30, 2002, as filed
by the Company with the Securities  and Exchange  Commission.  In addition,  the
forward-looking   statements  included  in  this  press  release  represent  the
Company's estimates as of the date of this release. The Company anticipates that
subsequent events and developments may cause its  forward-looking  statements to
change. The Company specifically disclaims any obligation or intention to update
or revise  these  forward-looking  statements  as a result of changed  events or
circumstances after the date of this press release.