Redmond, Wash.—January 6, 2004—ProCyte Corporation (OTCBB: PRCY.OB), a dermatology and cosmetic surgery products company, today announced it completed the acquisition of the spa products distribution business from Annette Hanson December 30, 2003. Ms. Hanson’s business, Annette Hanson, Inc., is focused on the spa and salon markets and includes products sold under the Simple Solutions^® and AquaSanté^® brands.  The Simple Solutions^® line of products offers elegant and effective skin care and is sold at leading spas including Turnberry Isle in Florida and the MGM Grand in Las Vegas.  Several of these products contain ProCyte’s Copper Peptide compounds manufactured by ProCyte under a previous supply agreement.

Assets acquired include the brand names, trademarks, inventory, and receivables.  The current sales and warehouse personnel have joined ProCyte providing operational continuity.  Ms. Hanson, an internationally known speaker and educator in the spa industry has signed a multi-year consulting agreement with ProCyte to promote her Simple Solutions^®, AquaSanté^® and ProCyte products in the spa market.  Ms. Hanson has been a long-time advocate of ProCyte’s patented Copper Peptide technology and has lectured on its effectiveness at national and international tradeshows and seminars.

Plans are underway to expand the media and tradeshow coverage of the Simple Solutions^® and AquaSanté^® products.  A small specialty sales force will focus specifically on high volume spas and destination spas while the existing ProCyte sales representatives will continue to sell to dermatologists and cosmetic surgeons in addition to select spa and medispa accounts.

“Annual revenue of the existing business was approximately $1 million, which Annette was able to achieve with very limited resources and no dedicated sales force,” commented Jack Clifford, President & CEO.  “This acquisition provides ProCyte the ability to expand into targeted retail distribution and to leverage its Copper Peptide technology.  Sales of skin care products at spas have shown recent growth rates of approximately ten percent.  This acquisition provides ProCyte with the opportunity to actively participate in this growth by leveraging our sales and marketing expertise and to participate more broadly in the overall economic recovery.”

"I am delighted that my product lines are now part of the ProCyte family of comprehensive skin care offerings,” said Annette Hanson, “and very excited to have ProCyte‘s additional resources and marketing capabilities to expand the Simple Solutions^® and AquaSanté^® brands.”

ProCyte Corporation develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. The Company sells directly to dermatologists, plastic and cosmetic surgeons and through licenses with strategic partners into the consumer market, including its long-term worldwide license agreement with Neutrogena^®, a Johnson & Johnson company. ProCyte’s products include VitalCopper™ and Neova^® Anti-Aging Skin Care agents, Complex Cu₃^® Post-Procedure Skin Care, GraftCyte^® Hair Transplant Care and Tricomin^® Advanced Care for Thinning Hair. The Company also has the exclusive distribution rights for Cutanix Corporation’s Quadrinone^® technology for medical and spa markets in the U.S., Canada and Puerto Rico. Additional information is available by visiting the Company’s website at www.procyte.com.

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This release may contain forward-looking statements relating to the research, development, commercialization, production, marketing and distribution of the Company's products and future operating results, which are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “believe,” “expect,” “intend,” “anticipate,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include its ability to develop, commercialize and produce new products; the market acceptance of existing and potential future products; the availability, cost and timely delivery of materials and services from and performance of third-party suppliers, manufacturers, distributors, licensees and other collaborative partners; the satisfaction of regulatory requirements, and the receipt, timing, terms and conditions of required regulatory approvals.  Reference is made to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002 and its latest Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission for a more detailed description of such factors.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statement to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.