Medchem (P.R.), Inc. - Page 5




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          collagen-rich lining (corium) of cowhides.  It is used during               
          surgery to control bleeding.  It was primarily manufactured by              
          Alcon P.R. during the relevant years in the forms of 35x70 mm.              
          nonwoven web and 1 gram finished flour.                                     
               MedChem U.S.A. leases office, research, and manufacturing              
          facilities in Woburn.  It leased 32,000 square feet in 1989, and            
          its 63 full-time employees on August 31, 1991, worked in that               
          space.  On August 31, 1992, MedChem U.S.A. leased approximately             
          50,000 square feet at two facilities in Woburn.  MedChem U.S.A.’s           
          144 full-time employees on August 31, 1992, worked at MedChem               
          U.S.A.’s manufacturing facilities in Woburn and San Antonio,                
          Texas.                                                                      
               The individuals who were connected with the Avitene                    
          manufacturing and sales business (Avitene business) were employed           
          by MedChem U.S.A., MedChem P.R., Alcon P.R., or Kelly Services,             
          Inc. (Kelly), a supplier of temporary labor.  Each MedChem U.S.A.           
          employee connected with Avitene was paid by MedChem U.S.A. and              
          had his or her office at MedChem U.S.A.’s facility in Woburn.               
          MedChem P.R. had no employees after June 30, 1990.  MedChem                 
          P.R.’s only employee before July 1, 1990, was Jose Perez, and               
          MedChem P.R. terminated him on June 30, 1990.  Nor did any of               
          MedChem P.R.’s officers or directors have an office in Puerto               
          Rico after June 30, 1990.  All of MedChem P.R.’s officers and               
          directors, except Mr. Perez, were officers and/or directors of              






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