Thallion Pharmaceuticals Inc.
TSX : TLN

Thallion Pharmaceuticals Inc.

July 11, 2007 07:30 ET

Thallion Announces Closing of Sale of Majority Stake in Caprion Proteomics to Great Point Partners

MONTREAL, QUEBEC--(Marketwire - July 11, 2007) - Thallion Pharmaceuticals Inc. (TSX:TLN) today announced that it has closed the previously announced sale of an 80 percent stake in the Company's wholly-owned proteomics business, Caprion Proteomics GP, to a company formed by Great Point Partners, LLC of Greenwich, Connecticut. Thallion will retain a 20 percent equity interest in the newly created company, to be called Caprion Proteomics Inc., with the remaining 80 percent owned by Great Point Partners. The new company will acquire substantially all of Thallion's proteomics assets including the CellCarta® discovery platform, and will assume $22,150,259 in long-term debt obligations from Thallion without recourse to Thallion. In addition, Caprion Proteomics Inc. will also issue $4,100,000 in secured subordinated notes to Thallion at an interest rate of 9.5% per annum.

About Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc. (TSX:TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. Thallion's clinical-stage programs include: Shigamabs®, a dual antibody product for the treatment of Shigatoxin-producing E. coli bacterial infections; ECO-4601, a novel anticancer therapy derived from a nonpathogenic microorganism; and CAP-232, a targeted therapy with potential efficacy in multiple oncology indications. Thallion Pharmaceuticals was formed on March 14, 2007 by the amalgamation of Ecopia BioSciences Inc. and Caprion Pharmaceuticals Inc. Additional information about the Company can be obtained at www.thallion.com.

About Caprion Proteomics GP

Caprion Proteomics GP is a leading provider of proteomics-based discovery solutions to the pharmaceutical industry. Caprion uses its proprietary proteomics technology platform - CellCarta® - to discover novel targets for therapeutics development as well as clinical biomarkers that can significantly reduce risk and enhance productivity and decision making in pharmaceutical research. Caprion has established strategic alliances in the area of novel oncology target discovery and antibody development with Abbott, Biogen-Idec, and Centocor, as well as multiple biomarker collaborations with such leading companies as Pfizer, Johnson & Johnson, Wyeth, Daiichi-Sankyo, Boehringer-Ingelheim, Berlex (now Bayer HealthCare) and Vertex. Caprion also has a major 5-year bio-defense contract in infectious disease proteomics with the NIH-NIAID.

About Great Point Partners, LLC

Great Point Partners, LLC, based in Greenwich, CT, is a leading health care investment firm with approximately $800 million of equity capital under management. Currently, the firm manages capital in both public equity and private equity funds. Both the private and public funds invest across all sectors of the health care industry including specialty pharmaceuticals, medical devices, biotechnology, and healthcare services. The firm pursues a proactive and proprietary approach to sourcing investments. For the period since the firm's founding, Great Point Partners' hedge funds have been amongst the top performing healthcare funds in the country. For more information, please visit: www.gppfunds.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.

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