Mistral Pharma Inc.

Mistral Pharma Inc.

June 13, 2008 16:30 ET

Mistral Pharma Files a Notice of Intention Under Bankruptcy and Insolvency Act

MONTREAL, QUEBEC--(Marketwire - June 13, 2008) - Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation"), announces that earlier today, it filed a notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act. The Corporation filed the notice in order to facilitate ongoing negotiations concerning the terms and conditions of purchase offers for its business and assets it has received from potential acquirors.

If agreed upon, it is intended that the purchase offers will be part of the Corporation's proposal and will be subject to a vote at a meeting of its creditors to be held at a date to be determined. The Corporation has retained the firm of Demers Beaulne to act as trustee in bankruptcy.

In the meantime, the Corporation will benefit from a complete stay with regards to debt payments and to any possible creditor's proceedings.

In order to be accepted, the Corporation's proposal will need to be approved by creditors representing the majority in number and at least 66.66% in value of the Corporation's debt.

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 assumptions 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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