EXHIBIT 99.1

                              BIONX IMPLANTS, INC.
                 STATEMENT REGARDING FORWARD-LOOKING INFORMATION

          The  Private  Securities  Litigation  Reform  Act of 1995 (the  "Act")
provides a "safe  harbor" for  "forward-looking  statements"  (as defined in the
Act).  The Annual  Report on Form 10-K to which this  Exhibit is  attached,  the
Company's  Annual Report to  Shareholders,  any Quarterly Report on Form 10-Q or
any  Current  Report on Form 8-K of the  Company,  or any other  written or oral
statements  made by or on  behalf of the  Company  may  include  forward-looking
statements  which  reflect  the  Company's  current  view (as of the  date  such
forward-looking  statement  is made) with respect to future  events,  prospects,
projections  or financial  performance.  These  forward-looking  statements  are
subject to certain  uncertainties  and other  factors  that could  cause  actual
results to differ  materially  from those  made,  implied or  projected  in such
statements.  These uncertainties and other factors include,  but are not limited
to, the  following  matters (as well as other  factors  referenced in the Annual
Report on Form 10-K to which  this  Exhibit  is  attached  or other  filings  or
written or oral statements made by or on behalf of the Company):

         History of Operating Losses; Accumulated Deficit; Uncertainty of Future
Profitability;  Fluctuating  Results of  Operations.  The Company  has  incurred
substantial  operating losses since its inception;  at December 31, 1997, it had
an accumulated deficit of approximately $5.5 million.  Such losses have resulted
principally  from expenses  associated with the development and patenting of the
Company's   Self-Reinforcing   technologies  and  resorbable   implant  designs,
preclinical  and clinical  studies,  preparation  of  submissions to the FDA and
foreign regulatory bodies, the development of sales,  marketing and distribution
channels,  the write-off of acquired in-process research and development and the
development of manufacturing capabilities.  Although the Company's revenues grew
significantly  during 1996 and 1997 and the Company  reported a profit for 1997,
no assurance  can be given that this trend will  continue or that  revenues will
exceed expenses incurred in anticipation of future revenue growth.  Accordingly,
the Company may incur significant  operating losses in the future as the Company
continues its product  development  efforts,  expands its  marketing,  sales and
distribution activities and scales up its manufacturing capabilities.  There can
be no assurance that the Company will be able to successfully  commercialize its
products  or  that  profitability  will  continue.   The  Company's  results  of
operations  have fluctuated in the past on an annual and quarterly basis and may
fluctuate  significantly  from period to period in the future,  depending upon a
number of factors,  many of which are  outside of the  Company's  control.  Such
factors  include the timing of  government  approvals,  the medical  community's
continued  acceptance  of the  Company's  products,  the success of  competitive
products,  the ability of the  Company to enter into  strategic  alliances  with
corporate partners,  expenses associated with patent matters,  and the timing of
expenses related to product  launches.  Due to one or more of these factors,  in
one or more future  quarters the  Company's  results of operating may fall below
the expectations of securities analysts and investors. In that event, the market
price of the Company's Common Stock could be materially and adversely affected.

         Uncertainty of Market Acceptance.  The Company's success will depend in
part upon the continued acceptance of the Company's Self-Reinforced,  resorbable
implants,  particularly its Meniscus Arrow products,  by the medical  community,
including  health  care  providers,  such  as  hospitals  and  physicians,   and
third-party  payors.  Such  acceptance  may depend  upon the extent to which the
medical  community  perceives  the  Company's  products as a safe,  reliable and
cost-effective   alternative  to  non-resorbable   products,  which  are  widely
accepted, have a long history of use and are generally sold at prices lower than
the prices of the Company's  products.  Such acceptance may also depend upon the
extent  to  which   the   medical   community   believes   that  the   Company's
Self-Reinforced,  resorbable implants have overcome the strength and composition
difficulties experienced with first generation resorbable implants.  Ultimately,
for the  Company's  products  to gain wide  market  acceptance,  it will also be
necessary for the Company to convince surgeons that the benefits associated with
the Company's products justify the modification of standard surgical  techniques
in order to use the Company's  implants safely and effectively.  There can be no
assurance that the Company's products will achieve significant market acceptance
on a timely basis, or at all.  Failure of some or all of the Company's  products
to achieve significant market acceptance could have a material adverse effect on
the Company's business, financial condition and results of operations.

         Uncertainties  Relating  to  Licenses,   Trade  Secrets,   Patents  and
Proprietary  Rights.  For  information  pertaining to risks  associated with the
Company's  licenses,  trade secrets,  patents and proprietary rights, see Item 1
("Business -- Licenses,  Trade Secrets,  Patents and Proprietary Rights") of the
Company's Annual Report on Form 10-K for the year ended December 31, 1997.

         Regulatory  Submission  Dates  Subject to Change.  The 1998  target for
filing a PMA  application  for the  Company's PGA urology stent depends upon the
FDA's  willingness  to accept the data that the  Company  has  collected  from a
European study. This study was not conducted  pursuant to a protocol  precleared
by the FDA.  The FDA may raise  questions  as to the design,  endpoints,  sample
size,  and/or  inclusion/exclusion  criteria  in  connection  with  studies  not
precleared  by it. The  Company  intends  to  request a meeting  with the FDA to
determine  whether  its data will be  sufficient  to support  approval  of a PMA
application.  No assurance can be given that the FDA will find the existing data
sufficient  to  support  approval.  If the  FDA  concludes  that  the  data  are
insufficient  to support  approval,  the Company will consider  conducting a new
clinical  trial in the U.S.,  which could extend the time required to obtain PMA
approval by at least two years.

         From time to time the Company  publicizes  estimates  regarding  future
regulatory submission dates.  Regulatory submissions can be delayed, or plans to
submit proposed products can be canceled, for a number of reasons, including the
receipt of unanticipated  preclinical or clinical study reports, a determination
by the FDA that PMA  approval  rather than  510(k)  clearance  is required  with
respect to a particular submission, changes in regulations,  adoption of new, or
unanticipated enforcement of existing,  regulations,  technological developments
and competitive developments.  Accordingly,  no assurances can be given that the
Company's anticipated submissions will be made on their target dates, or at all.
Delays in such submissions could have a material adverse effect on the Company's
business, financial condition and results of operations.

         Dependence  on  Key  Personnel  and  Relationship  with  the  Technical
University at Tampere.  The Company's ability to operate successfully depends in
part upon the continued service of certain key scientific, technical, managerial
and finance personnel.  Competition for such personnel is intense, and there can
be no assurance that the Company will be able to retain  existing  personnel and
attract or retain  additional  highly  qualified  employees  in the  future.  At
present,  the Company  does not  maintain  key man life  insurance on any of its
employees  and only  has  individual  employment  agreements  with  three of its
employees.  The loss of key  personnel  and the  inability  to hire  and  retain
qualified personnel in key positions could have a material adverse effect on the
Company's business, financial condition and results of operations.

         The Company's  product  development  efforts are dependent  upon Pertti
Tormala, Ph.D. and the Technical University in Tampere,  Finland. Dr. Tormala, a
founder,  director and executive officer of the Company, is currently an Academy
Professor at the Technical  University  and has been permitted by the University
to devote his efforts to developing  new products for the Company.  Dr.  Tormala
utilizes a group of senior  researchers,  graduate  students  and faculty at the
Technical  University to perform  research and  development  projects  involving
resorbable polymers ands other topics relating to the Company's technologies and
manufacturing  processes.  This arrangement,  permitted in Finland as a means of
encouraging the commercialization of technological development,  has resulted in
substantial  cost savings to the Company  while  greatly  expanding  its product
development  efforts.  There can be no assurance that the University  will allow
Dr.  Tormala to continue to devote his efforts and  University  resources to the
Company's product development  efforts. Any failure by the Company to obtain the
continued  services of Dr.  Tormala,  or any  requirement  that the Company fund
research at the Technical  University at a substantially  increased level, could
have a material adverse effect on the Company's  business,  financial  condition
and results of operations.

         Government  Regulation.  For information regarding the risks associated
with U.S. and  international  government  regulation,  see Item 1 ("Business  --
Government  Regulations")  of the  Company's  Annual Report on Form 10-K for the
year ended December 31, 1997.

         Competition.  Many  of the  Company's  competitors  have  substantially
greater financial,  marketing,  sales,  distribution and technological resources
than the Company.  Such existing and potential competitors may be in the process
of seeking FDA approval for their respective products or may possess substantial
advantages in the process of seeking FDA approval for their respective  products
or may possess substantial  advantages over the Company in terms of research and
development expertise,  experience in conducting clinical trials,  experience in
regulatory  matters,  manufacturing  efficiency,  name  recognition,  sales  and
marketing expertise or distribution channels. There can be no assurance that the
Company  will  be  able  to  compete  successfully  against  current  or  future
competitors or that  competition  will not have a material adverse effect on the
Company's business,  financial  condition and results of operations.  See Item 1
("Business -- Competition" and Item 7 ("Management's  Discussion and Analysis of
Financial  Condition and Results of  Operations - Results of Operations  for the
years ended December 31, 1995,  1996 and 1997 - Product Sales") of the Company's
Annual Report on Form 10-K for the year ended December 31, 1997.

         Dependence Upon Independent Sales Agents, Distributors and Dealers. The
Company markets and sells its products  through managed  networks of independent
sales agents in the U.S.  and  independent  distributors  and dealers in foreign
countries.  As a result,  a substantial  portion of the  Company's  revenues are
dependent upon the sales efforts of such sales agents, distributors and dealers.
The  Company  may  also  rely on its  distributors  to  assist  it in  obtaining
reimbursement and regulatory approvals in certain international  markets.  There
can be no assurance that the Company's sales agents,  distributors  and dealers,
certain  of which  operate  relatively  small  businesses,  have  the  financial
stability to assure their continuing presence in their markets. The inability of
a sales  agent,  distributor  or  dealer  to  perform  its  obligations,  or the
cessation of business by a sales agent,  distributor or dealer, could materially
and adversely affect the Company's business,  financial condition and results of
operations. There can be no assurance that the Company will be able to engage or
retain  qualified  sales  agents,  distributors  or  dealers  in each  territory
targeted by the Company. The failure to engage such entities in such territories
would  have a  material  adverse  effect on the  Company's  business,  financial
condition and results of operations.  See Item 1 ("Business -- Sales,  Marketing
and  Distribution")  of the  Company's  Annual  Report on Form 10-K for the year
ended December 31, 1997.

         Risks Relating to International  Operations.  Approximately  32% of the
Company's  product sales during 1996 and  approximately 15% of sales during 1997
were  generated  in  international  markets.  A number of risks are  inherent in
international  operations.  International sales and operations may be limited or
disrupted by the imposition of government controls, export license requirements,
political instability,  trade restrictions,  changes in tariffs, difficulties in
managing  international  operations,  import  restrictions  and  fluctuations in
foreign  currency  exchange  rates.  The  international  nature of the Company's
business  subjects it and its  representatives,  agents and  distributors to the
laws and regulations of the foreign  jurisdictions in which they operate, and in
which the Company's  products are sold. The  regulation of medical  devices in a
number of such jurisdictions,  particularly in the European Union,  continues to
develop and there can be no assurance that new laws or regulations will not have
a material  adverse effect on the Company's  business,  financial  condition and
results of operations.

         Product Liability Risks;  Limited Insurance  Coverage.  For information
regarding rights  associated with the Company's  exposure to products  liability
claims,  see Item 1  ("Business  -- Product  Liability  and  Insurance")  of the
Company's Annual Report on Form 10-K for the year ended December 31, 1997.

         No  Assurance  of Ability to Manage  Growth.  The  Company  experienced
substantial  growth in product  sales  during the second half of 1996 and during
1997.  Although  there can be no  assurance  that such growth can be  sustained,
products in development may potentially lead to further growth.  There can be no
assurance   that  the  Company  will  be  able  to  (i)  develop  the  necessary
manufacturing capabilities, (ii) manage an expanded sales and marketing network,
(iii)  attract,  retain  and  integrate  the  required  key  personnel,  or (iv)
implement  the  financial,  accounting  and  management  systems to meet growing
demand for its products should it occur.  Failure of the Company to successfully
manage  its  growth  could  have a  material  adverse  effect  on the  Company's
business, financial condition and results of operations.

         Uncertainties   Regarding   Manufacturing.    The   Company   currently
manufactures  its implant  products  solely in Finland.  The Company  intends to
develop  a  manufacturing  capability  in the  U.S.  in order  to  increase  its
manufacturing   capacity  for  its  existing  and  new  implant  products.   For
information  regarding risks  associated with the Company's plans to establish a
U.S. manufacturing  capability,  see Item 1 ("Business -- Manufacturing") of the
Company's Annual Report on Form 10-K for the year ended December 31, 1997.

         Limited Sources of Supply;  Lack of Contractual  Arrangements.  The raw
materials for the Company's PLLA products are currently available to the Company
from  three  qualified  sources,  while  the  Company's  PGA raw  materials  are
available  from two qualified  sources.  The  Company's raw materials  have been
utilized in products  cleared by the FDA and the  Company's  suppliers  maintain
Device Master Files at the FDA that contain basic  toxicology and  manufacturing
information.  The Company does not have long-term  supply  contracts with any of
its suppliers,  although it is currently negotiating a supply agreement with its
principal  PLLA  supplier.  In the event  that the  Company  is unable to obtain
sufficient quantities of raw materials on commercially reasonable terms, or in a
timely manner,  the Company would not be able to  manufacture  its products on a
timely and cost-competitive  basis which, in turn, would have a material adverse
effect on the Company's business, financial condition and results of operations.
In addition, if any of the raw materials for the Company's PGA and PLLA products
are no longer  available  in the  marketplace,  the  Company  would be forced to
further  modify its  Self-Reinforcing  processes to  incorporate  alternate  raw
materials.  The  incorporation of new raw materials into the Company's  existing
products would likely require the Company to seek clearance or approval from the
FDA.  There can be no assurance  that such  development  would be  successful or
that,  if  developed  by the Company or licensed  from third  parties,  products
containing such alternative  materials would receive  regulatory  approvals on a
timely basis, or at all.

         Uncertainties  Relating to Strategic Partners.  The Company anticipates
that it may be necessary to enter into  arrangements  with  corporate  partners,
licensees or others, in order to efficiently market, sell and distribute certain
of its products.  Such  strategic  partners may also be called upon to assist in
the support of such products,  including support of certain product  development
functions.  As a result,  the success of such  products may be dependent in part
upon the efforts of such third  parties.  The Company  has  negotiated  one such
agreement  with Ethicon  GmbH, a  subsidiary  of Johnson & Johnson,  pursuant to
which Ethicon GmbH has the right to market and sell in Europe certain  products,
based upon the Company's  membrane patent,  in dentistry and two other unrelated
fields  of use.  There  can be no  assurance  that the  Company  will be able to
negotiate additional acceptable arrangements with strategic partners or that the
Company will realize any meaningful revenues pursuant to such arrangements.

         Possible  Volatility of Stock Price. The stock markets have experienced
price and volume fluctuations that have particularly affected medical technology
companies,  resulting  in  changes  in the  market  prices of the stocks of many
companies that may not have been directly  related to the operating  performance
of those companies.  Such broad market fluctuations may materially and adversely
affect  the  market  price  of the  Company's  Common  Stock.  Factors  such  as
variations  in the  Company's  results of  operations,  comments  by  securities
analysts,   under-performance  against  analysts'  estimates,  announcements  of
technological innovations,  new products or new pricing practices by the Company
or its  competitors,  changing  government  regulations  and  developments  with
respect to FDA or foreign  regulatory  submissions,  the  results of  regulatory
inspections,  patents,  proprietary  rights or  litigation  may have a  material
adverse effect on the market price of the Company's Common Stock.

         The words  "believe",  "expect",  "anticipate",  "project"  and similar
expressions identify  "forward-looking  statements",  which speak only as of the
date that any such statement was made.  The Company  undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.