Ecopia BioSciences Inc.

Ecopia BioSciences Inc.

February 25, 2005 09:14 ET

Ecopia Enters Into a Bought Deal Private Placement to Raise $9 Million to Advance Drug Development


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ECOPIA BIOSCIENCES INC.

TSX SYMBOL: EIA

FEBRUARY 25, 2005 - 09:14 ET

Ecopia Enters Into a Bought Deal Private Placement to
Raise $9 Million to Advance Drug Development

MONTREAL, QUEBEC--(CCNMatthews - Feb. 25, 2005) - THIS NEWS RELEASE IS
INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES.

Ecopia BioSciences Inc. (TSX:EIA) announces that it has entered into a
bought deal agreement with a syndicate of underwriters led by Desjardins
Securities Inc. and including First Associates Investments Inc. and
Orion Securities Inc. Under the agreement, the syndicate has agreed to
purchase 10,000,000 Units at a price of $0.90 per Unit, resulting in
gross proceeds to Ecopia of $9 million. Each Unit shall consist of one
common share and one third of one common share of purchase warrant.

Each share purchase warrant will allow the holder to purchase one common
share of Ecopia at an exercise price of $1.03 any time up to the second
anniversary of the closing. Closing is expected to occur on or about
March 8, 2005.

In addition, Ecopia has granted to the Underwriters an option to
purchase an additional 1,000,000 Units at a price of $0.90 per Unit
prior to 5:00 p.m., Monday, February 28, 2005.

The net proceeds of this private placement will be used by Ecopia for
working capital, product development and general corporate purposes.

The offering of the Units is subject to receipt of all regulatory
approvals and other customary closing conditions.

THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN
THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY THE SECURITIES,
NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH
OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

About Ecopia

Ecopia is advancing its most promising compound ECO-4601, a potential
new drug to treat brain cancer, through preclinical trials and expects
to file an IND in 2005. Using its innovative DECIPHER® technology,
the Company employs a radically different approach to discover new
drugs, with anticancer, antibacterial or antifungal activity, from
bacteria called actinomycetes. The most promising anticancer
discoveries are added to Ecopia's rapidly growing pipeline for further
development while other compounds will be leveraged to generate revenue
through licensing and partnerships. Ecopia's shares are listed on the
Toronto Stock Exchange (ticker symbol: EIA).

Additional information about the Company can be obtained from Ecopia's
website at www.ecopiabio.com.

This press release may contain forward-looking statements that reflect
the Company's current expectations regarding future events. The
forward-looking statements, including expectations as to the
pharmaceutical potential of compounds discovered by the Company's
platform, the timeframe for preclinical and clinical development of the
compounds into new medications, and expansion of the Company's product
pipeline involve risk and uncertainties. Actual events could differ
materially from those projected here and depend on a number of factors,
including scientific uncertainties relating to scientific hypotheses and
experimental approaches in regard to the drug discovery platform,
uncertainties related to the regulatory process for drug development and
the success and timely completion of clinical studies and trials, and
the impact of general economic conditions. Investors are cautioned
against placing undue reliance on forward-looking statements. A more
complete discussion of the risks and uncertainties facing the Company
appears in Ecopia's 2003 Annual Report.

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