ProMetic Life Sciences Inc.
TSX : PLI

ProMetic Life Sciences Inc.

October 16, 2008 15:15 ET

ProMetic Provides Business Update

MONTREAL, QUEBEC, CANADA--(Marketwire - Oct. 16, 2008) - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") today provided a business update on its activities.

"ProMetic's Protein Technologies business has progressed to the commercial phase, contributing both short-term cash inflow and significant value," stated Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic. "This is the cornerstone of our corporate strategy where revenue growth from the Protein Technologies business unit, combined with cost reductions are systematically cutting ProMetic's net burn. Management reiterates that the recent equity investment from Abraxis and the developing revenue streams will fund the day-to-day operations of the Company. This allows us to focus on achieving strategic milestones rather than being distracted by current market conditions," added Mr. Laurin.

Protein Technologies

- P-Capt® prion filter

At the Annual Meeting of ProMetic's Shareholders held in May of this year, MacoPharma stated that they were expecting the adoption of the P-Capt® prion filter by the Irish Blood Transfusion Services in the fall of 2008. We are still on course with this schedule and manufacturing activities are coordinated accordingly.

Moreover, a link is provided hereunder to a document that has recently been made public by the UK NHS Blood and Transplant ("NHSBT"), to the effect that a contract was awarded to MacoPharma (UK) Ltd - http://www.dgmarket.com/eproc/np-notice.do-3104903. The contract pertains to the supply to the NHSBT of P-Capt® filters by MacoPharma, in part for NHSBT's continuing pre-adoption phase. The estimated total value of this contract is 20,000,000 GBP.

- Abraxis BioScience, Inc.



- Work has commenced on the development activities for two of the four
biopharmaceutical products, which will allow recognition of development
service fee income this year;

- Abraxis has appointed Mr. Bruce Wendel, Executive Vice President,
Corporate Development, to join ProMetic's Board of Directors in the
fourth quarter of 2008.


- Sartorius Stedim BioTech

ProMetic's collaboration with Sartorius Stedim BioTech ("Sartorius") has resulted in revenue from the successful technology transfer phase for the Blue-Blood Biotech Corporation project in Taiwan.

Sartorius is a world-leading provider of cutting-edge equipment and services for the development, quality assurance and manufacturing processes of biopharmaceutical products. The ProMetic / Sartorius alliance is anticipated to generate annual revenues in excess of $60 M with the joint projects in Asia.

- FAbsorbent™

Following the recent termination of the agreement entered into with Millipore during the first quarter of 2008 regarding MAbsorbent®, the Company proceeded to launch its new FAbsorbent™ F1P at the BioProcess International™ Conference & Exhibition in Anaheim, CA. ProMetic has already received orders for this unique product. FAbsorbent™ F1P has been developed to better accommodate the needs of companies that have, in the past, relied on Protein L or traditional multi-step methods for the capture and purification of antibody fragments. FAbsorbent™ F1P is a unique product with broad applicability that addresses the manufacturing needs of a new generation of monoclonal antibody fragments.

This market opportunity presents ProMetic with additional revenue prospects. The market for FAbsorbent™ applications is highly concentrated, with a small number of target customers making up the overall market. This narrow distribution allows ProMetic to service the customers with its own sales team. ProMetic has already developed direct relationships with the manufacturers of antibody fragment products and is to handle its own marketing, thus retaining 100% of the revenues arising from product sales.

"Having reconsidered the strategic positioning of FAbsorbent™, we believe that marketing the product directly, rather than through a partner, will deliver best value for shareholders," commented Dr. Steve Burton, Chief Executive Officer of ProMetic's UK division responsible for the development and manufacture of the Company's bioseparation products.

- Kedrion S.p.A.

The technology transfer portion of the hyperimmune project with Kedrion was successful. The two companies are collaborating on the development of the hepatitis B hyperimmune product, which in turn translates to development service revenue for ProMetic this year and spanning to 2009/2010.

- Wuhan Institute for Biological Products

The Wuhan Institute for Biological Products ("WIBP") project is progressing in accordance with the original work plan. WIBP employee training at ProMetic's Rockville facilities is scheduled for the fourth quarter of 2008.

- Instituto de Tecnologia do Parana

The Instituto de Tecnologia do Parana of Brazil ("Tecpar") project has incurred some delays due to international tax issues totally outside ProMetic's control. This matter is currently being resolved. ProMetic expects continued revenue in the fourth quarter of 2008 onwards.

"The underlying growth in demand for ProMetic's bioseparation products witnessed in 2007 is continuing in 2008," said Dr. Burton. "We expect this growth trend to continue with the advent of new product sales and the commencement of bulk resin supplies in relation to prion-reduction and protein production licencing deals," added Dr. Burton.

Therapeutics

- An update on the activities surrounding PBI-1402 will be provided later this quarter;

- In line with the natural evolution incurred by its sister divisions of moving from research phases into development or commercialization phases, ProMetic's Therapeutics division, ProMetic BioSciences Inc., has recently undertaken changes to align resources on development activities leading to partnering. This division has undergone a restructuring consisting of a temporary personnel reduction of six employees and a realignment designed to assist with activities for the protection of intellectual property and support due diligence and partnering discussions. This effort is largely focused on PBI-1402 and the hematology program, but also sustains ProMetic's other valuable drug candidates presently involved in co-development / partnering discussions.

"By temporarily reducing fundamental research activities the associated costs savings contribute to the reduction of our burn rate without affecting the value of our compounds," indicated Mr. Laurin. "The important work performed by our scientists has opened up several avenues for ProMetic to leverage significant value of its therapeutics."

Corporate

- The Company has discharged its obligation to the Bank of Montreal by repaying in full its debt obligation. This repayment not only removes a significant liability from the Company's balance sheet, but also releases the business from a hypothec held by the bank over the assets of the business;

- The Company shall appoint a new member to its Board of Directors in the fourth quarter 2008;

- Having made a lifestyle decision to relocate to Atlantic Canada, Ms. Lucie Morin has resigned from her position as ProMetic's Vice-President, Human Resources.

About ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc. ("ProMetic") (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.

Forward Looking Statements

This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 21 of ProMetic's Annual Information Form for the year ended December 31, 2007, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations.

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