Mistral Pharma Inc.

Mistral Pharma Inc.

September 17, 2008 18:09 ET

Mistral Pharma Inc.: The Court Approves the Proposal Filed Under the Bankruptcy and Insolvency Act

MONTREAL, QUEBEC--(Marketwire - Sept. 17, 2008) - Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation") announced that on September 15, 2008, the Quebec Superior Court approved the proposal filed by the Corporation under the Bankruptcy and Insolvency Act (Canada). The proposal shall effect a compromise of the Corporation's debts existing at June 13, 2008, and effect a reorganization under Section 191 of the Canada Business Corporations Act.

The judgment rendered by the Court approves the Proposal of the Corporation and declares valid and sufficient the notice of hearing of the motion given to the holders of securities of the Corporation. In addition, the Court authorizes the reorganization of the Corporation in accordance with the terms of the proposal and in accordance with section 191 of the Canada Business Corporations Act and the investment of fresh funds by a third-party in the Corporation in exchange for the cancellation of all of the Corporation's issued and outstanding shares, options and warrants, and the issuance of new shares in favor of the purchaser. The reorganization shall become effective on the date shown on the certificate to be issued by the Director under section 262 of the Canada Business Corporations Act.

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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