Ambrilia Biopharma Inc.
TSX : AMB

Ambrilia Biopharma Inc.

October 18, 2006 08:00 ET

Ambrilia Announces Share Consolidation

MONTREAL, QUEBEC--(CCNMatthews - Oct. 18, 2006) - Ambrilia Biopharma Inc.(TSX:AMB), a biopharmaceutical company developing innovative therapeutics in the fields of oncology and infectious diseases, announced today a one-for-ten (1:10) consolidation of its common shares. The consolidation is effective on October 13, 2006 and the Company's common shares will begin trading on the Toronto Stock Exchange (TSX) on a consolidated basis at market opening on October 19, 2006.

"This is a positive step forward for Ambrilia as it will allow the Company to attract a broader base of institutional investors who are willing to both trade in the stock and hold the shares long term," said Hans J. Mader, President and Chief Executive Officer of Ambrilia. "The share consolidation is part of our longer term capital markets strategy with the aim of achieving a U.S. listing for Ambrilia's common shares eventually," he concluded.

The consolidation affects all of the Company's outstanding common shares and convertible securities, such as options, warrants, preferred shares and convertible debentures. Prior to the consolidation, Ambrilia had approximately 280 million common shares outstanding. The 1:10 consolidation will reduce the number of shares outstanding to approximately 28 million. No fractional shares will be issued, and any fractions resulting from the consolidation to a holder of common shares will be rounded down to the nearest whole number of common shares.

Non-registered shareholders who hold their Ambrilia shares through brokerage accounts will not be required to take any action since their Ambrilia shares will automatically be adjusted to reflect the 1:10 consolidation. Registered shareholders who hold Ambrilia share certificates will receive a letter from the Company's Transfer Agent, Computershare Trust Company of Canada, with instructions to return their share certificates in order to receive new share certificates reflecting the 1:10 consolidation.

At the special meeting of shareholders held on February 24, 2006, the shareholders of Ambrilia had given authority to its board of directors to effect a consolidation of all its common shares within a range of one new share for every five outstanding shares and one new share for every ten outstanding shares, if and when deemed appropriate, but in any event no later than February 28, 2007.

To get additional information or for any questions about the share consolidation, please dial: (514) 751-2003 and press "0".

A Q&A about the share consolidation is available at www.ambrilia.com.

ABOUT AMBRILIA BIOPHARMA

Ambrilia Biopharma Inc. (TSX:AMB) is a biopharmaceutical company developing innovative and proprietary early- to mid-stage therapeutics in the fields of oncology and infectious diseases. Ambrilia's product portfolio includes an anti-cancer therapeutic peptide (PCK3145), a novel anti-cancer therapy (TVT-Dox), two oncology specialty generics (Octreotide, Goserelin), the first of which is late-stage and value-added, and promising anti-HIV treatments (PPL-100, Anti-HIV Peptides, Integrase Inhibitor Program). Exclusive worldwide rights to PPL-100 and its related compounds have been granted to Merck & Co., Inc. in return for milestone payments that could total up to $US 232 million. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal with a regional office in France. For more information, please visit the Company's web site: www.ambrilia.com

Ambrilia's forward-looking statements

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. Such statements are also based on various assumptions, including the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward-looking statements.

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