                                                                    Exhibit 99.1

   Phase III Medical Signs Royalty Agreement with PSI to Develop New Delivery
           Platform for Therapeutic Proteins and Small Molecule Drugs

    MELVILLE, N.Y.--(BUSINESS WIRE)--Dec. 12, 2003--Phase III Medical,
Inc. (OTCBB:PHSM) today announced that it has signed a royalty
agreement with Parallel Solutions, Inc. (PSI) to develop a new
bioshielding platform technology for the delivery of therapeutic
proteins and small molecule drugs in order to extend circulating
half-life to improve bioavailability and dosing regimen, while
maintaining or improving pharmacologic activity. The market for
therapeutic proteins is a multi-billion dollar industry and rapidly
growing.
    This technology, if successfully developed, may be able to provide
new patent protection for existing pharmaceuticals coming off patent
by changing the biochemical properties and resulting in a new and
improved product. Advantages of the PSI biomedical polymer system
include structural versatility, tunable biodegradability, and
adjustable protein binding characteristics.
    The Royalty Agreement provides for PSI to pay Phase III a
percentage of the revenue received from the sale of certain specified
products or licensing activity. Phase III shall provide capital and
guidance to PSI to conduct a Proof of Concept Study to improve an
existing therapeutic protein with the goal of validating the
bioshielding technology for further commercial development and
licensing the technology.
    PSI is working with a unique class of polymers, the
Polyphosphazenes, and has made a number of important breakthroughs in
the synthesis of these macromolecules. Unlike conventional polymer
systems, PSI's technology provides significant capacity for molecular
design and rapid polymer derivatization. PSI's proprietary platform
combines high throughput synthesis and formulation with a suite of
assays for the rapid identification of pharmaceutical candidates.
    "We are delighted to have the support and commitment of Phase III
Medical to advance this important program. We believe we can make
significant advances in the development of new and improved
therapeutics in a broad range of disease areas with high unmet need.
PSI's technology is unique and we believe that it has broad potential
for developing advanced compounds with specifications to meet the
needs of a variety of drug delivery applications," said Dermot Liddy,
CEO of PSI.

    Parallel Solutions, Inc. is a Cambridge, MA based technology
company engaged in the discovery and development of breakthrough
delivery systems, macromolecular drugs and advanced materials. PSI was
founded by a group of experienced managers and scientists, including
Professors Bob Langer of MIT and Hans Wigzell of the Karolinska
Institute.

    Phase III Medical has been focusing on entering the medical sector
by acquiring or participating in one or more biotech and/or medical
companies or technologies, owning one or more drugs or medical
devices, or acquiring rights to one or more of such drugs or medical
devices or the royalties therefrom.

    This Release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, such as the Company's ability to enter the medical sector
or acquire any companies or technologies. Forward-looking statements
represent management's judgment regarding future events. Although
management believes that the expectations reflected in such statements
are reasonable, it gives no assurance that such expectations will
prove to be correct and you should be aware that actual results could
differ materially from those contained in the forward-looking
statements due to a number of factors. These factors include the risks
detailed in the Company's Annual Report on Form 10-K for the year
ended December 31, 2002 and other reports filed with the Securities
and Exchange Commission. In addition, no assurances can be given that
the Proof of Concept Program will be successful, that any viable
technology will arise from that program, that the Company or PSI will
be able to commercialize any product or technology that is
successfully developed, or that there will be market acceptance of any
such product or technology sufficient to generate any material
revenues for the Company.


    CONTACT: Phase III Medical
             Mark Weinreb, 631-574-4955


