Millenium Biologix Corporation
TSX : MBC

Millenium Biologix Corporation

October 31, 2006 15:22 ET

Millenium Announces Overwhelming Approval of its Proposal to Creditors

KINGSTON, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Millenium Biologix Corporation (TSX:MBC) ("Millenium" or the "Company") today announced that a proposal made to its creditors has been unanimously approved by its secured creditors, and approved by in excess of 98% of unsecured creditors who participated in the vote.

The next step is to have the proposal ratified by the court. This will allow Millenium to complete a corporate reorganization as described in our press release dated October 6, 2006. The Company would then be in a position to close the equity investment also referred to in that press release. This should generate approximately $1.4 million in new cash flow to the organization. The transaction is expected to close in November 2006 and is subject to the completion of definitive agreements and certain conditions precedent.

"It is gratifying to receive such strong support from our creditors. The proposal provides an opportunity for the Company to move forward with its partnering and M&A activities in an effort to maximize the value of Millenium's technologies." noted Brian Fielding, Millenium's CEO.

About Millenium Biologix Corporation

Millenium Biologix Corporation is focused on the development and commercialization of next generation cell culture and tissue engineering systems that will drive change from synthetic implants to more effective biologics-based solutions. For more information about Millenium, please visit www.millenium-biologix.com.

Forward-looking Statements

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Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements due to a number of material factors, including, the impact of general economic conditions on future operations and business plans, changes in product development plans and timing, delays in receipt of regulatory approvals for our products, the level of our costs and operating expenses relative to our revenues, our future capital requirements and the sufficiency of our cash, cash equivalents, investments and other sources of funds, including financing from external sources, to meet these requirements, the outcome of contingencies, such as litigation, and other factors described in the "Risk Factors" section of our most recent annual information form, particularly those under the heading "Dependence on Additional Financing/Need for Additional Financing". You should carefully consider the factors described above and in that "Risk Factors" section in evaluating our forward-looking statements. Other factors besides those described above and in the annual information form could also affect actual results.

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