ART Advanced Research Technologies Inc.
TSX : ARA

ART Advanced Research Technologies Inc.

November 20, 2009 19:56 ET

ART Advanced Research Technologies Inc. Announces Restructuring Agreement and Proposal to Creditors

MONTREAL, CANADA--(Marketwire - Nov. 20, 2009) - ART Advanced Research Technologies Inc. (ART) (TSX:ARA), a Canadian medical device company and a leader in optical molecular imaging products for the healthcare and pharmaceutical industries, announces that its strategic review process has culminated in ART entering into an agreement today with Dorsky Worldwide Corp. ("Dorsky") to restructure ART's balance sheet and share capital and position it to continue in business.

The agreement contemplates that ART will file a proposal (the "Proposal") to its unsecured creditors (the "Unsecured Creditors") under the Bankruptcy and Insolvency Act ("BIA") through KPMG Inc. (the "Trustee"). The meeting at which the Unsecured Creditors will vote on the Proposal is expected to be held on December 7, 2009 (the "Meeting"). The Proposal will provide, among other things, for the distribution of $375,000 to ART's Unsecured Creditors.

The Proposal will also provide for the repayment of certain claims of secured creditors of ART, for the cancellation of all existing issued and outstanding equity in the capital of ART, including any and all issued and outstanding common or preferred shares of ART of every classes and series, and any and all warrants, options and any agreement to purchase any of the foregoing, and for the issuance of a new class of voting common shares of ART, representing 100% of the new voting common shares of ART, in favour of Dorsky. Holders of the existing equity of ART will not receive any payment or other compensation with respect to such equity.

These announcements follow the announcement made on November 2, 2009 that ART filed on that day a notice of intention to make a proposal under the BIA. As authorized pursuant to an order of the Quebec Superior Court, ART also entered into a loan agreement with Dorsky for an interim financing of up to $1,200,000. The interim financing was put in place to support ART's ongoing operations by providing additional short-term liquidity to the company while allowing KPMG LLP and ART to pursue the strategic review process and continue soliciting purchase offers for the business and assets of ART.

Moreover, ART was also informed today that the Autorite des marches financiers issued a cease trade order (the "Cease Trade Order") against ART on November 19, 2009 since ART has not filed interim financial statements and interim management's discussion and analysis as prescribed by National Instrument 51-102 - Continuous Disclosure Obligations for the period ending September 30, 2009 within the time required. The Cease Trade Order requires ART, its securityholders and any other person to cease any activity in respect of a transaction in securities of ART.

About ART

ART Advanced Research Technologies Inc. is a leader in molecular imaging products for the healthcare and pharmaceutical industries. ART has developed products in medical imaging, medical diagnostics, disease research, and drug discovery with the goal of bringing new and better treatments to patients faster. The Optix® optical molecular imaging system, designed for monitoring physiological changes in living systems at the preclinical study phases of new drugs, is used by industry and academic leaders worldwide. The SoftScan® optical medical imaging device is designed to improve the diagnosis and treatment of breast cancer. Finally, the Fenestra® line of molecular imaging contrast products provides image enhancement for a wide range of preclinical Micro CT applications allowing scientists to see greater detail in their imaging studies, with potential extension into other major imaging modalities. ART is commercializing some of these products in a global strategic alliance with GE Healthcare, a world leader in mammography and imaging. ART's shares are listed on the TSX under the ticker symbol ARA. For more information on ART, visit our website at www.art.ca

This press release may contain forward-looking statements subject to risks and uncertainties that would cause actual events to differ materially from expectations. These risks and uncertainties are described in the most recent Annual Information Form and the financial statements for the year ended December 31, 2008, available on SEDAR (www.sedar.com).

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