Mistral Pharma Inc.

Mistral Pharma Inc.

May 31, 2005 14:56 ET

Mistral Pharma Acquires Commercial Tablet Press Machine From Elizabeth Hata, Oxford Finance Corporation Financed the Acquisition

MONTREAL, QUEBEC--(CCNMatthews - May 31, 2005) - Mistral Pharma Inc. (TSX VENTURE:MIP) announced today that it completed its financing to purchase a trilayer tablet press machine from Elizabeth Hata International. Oxford Finance Corporation granted a loan of a principal amount of US$930,000 to Mistral Pharma. In connection with the loan, Mistral Pharma issued 151,737 warrants to Oxford Finance Corporation, each warrant entitling Oxford Finance Corporation to purchase one common share of the capital of Mistral Pharma until May 26, 2007, for a price of $0.19.

"The acquisition of this trilayer press which is also converted for core-coating tablet production enables Mistral Pharma to propose industrial commercial production capacity for its controlled-delivery products to its actual and future partners" said Mr. Bertrand F. Bolduc, Mistral's President & CEO. "Having the press located at Confab Laboratories, a FDA-approved pharmaceutical manufacturing plant, provides clients with the opportunity to have their product manufactured for worldwide distribution" he added.

About Oxford Finance

Oxford Finance Corporation is a specialty finance firm providing senior secured loans to public and private life science companies. For nearly 20 years, Oxford's management team has delivered flexible financing solutions to its clients, enabling them to maximize their equity by leveraging their assets. Oxford is headquartered in Alexandria, Virginia, with offices in California and Massachusetts. For more information on Oxford, visit the company's website at http://www.oxfordfinance.com.

About Mistral Pharma inc.

Mistral Pharma is an emerging oral drug delivery company which develops generic and branded controlled-delivery products using its PROCISE™, SAVIT™ and CHRONOP™ geometry surface area technologies. These technologies offer many competitive advantages including flexible and fast development, competitive cost of goods and the use of "generally recognized as safe" excipients. Additional information about Mistral Pharma can be obtained from Mistral Pharma's website at http://www.mistralpharma.com.

Forward-looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral Pharma. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral Pharma's products, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

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