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ProMetic Gives a Business Update to the Financial Community

ProMetic Gives a Business Update to the Financial Community

MONTREAL, QUEBEC -- (MARKET WIRE) -- 07/06/06 -- ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic" or the "Company"), a leading biopharmaceutical company, today gives a business update to the financial community.

ProMetic closed on June 6, 2006, a private placement for total proceeds of C$10.8 million with JPMorgan and Third Point LLC. The funds from the financing will be used for general corporate purposes, including the development of PBI-1402, ProMetic's lead therapeutic, an orally active drug candidate for the treatment of anemia.

ProMetic BioSciences Ltd

ProMetic BioSciences Ltd ("PBL") specializes in the development and manufacture of robust bioseparation materials for use in commercial purification of biopharmaceutical products. Dr. Steven J. Burton, CEO of PBL and his team in the UK are currently preparing PBL for an IPO which should occur as soon as market conditions are favorable.

As part of the Company's announced reorganization, ProMetic has transferred to PBL its stake in Pathogen Removal and Diagnostic Technologies Inc. ("PRDT"). PRDT's resin is the first to demonstrate reduction of TSE prions from whole blood. TSEs are fatal brain diseases that include Bovine Spongiform Encephalopathy (BSE) or "mad cow disease" in cattle and Creutzfeldt-Jakob disease (vCJD) in humans. Maco Pharma SA, a European industry leader in blood collection systems and transfusion solutions, is PRDT's marketing partner in Europe. Maco Pharma incorporates PRDT's prion-capture adsorbent into its filter, P-CAPT(TM). Maco Pharma expects that the product will receive CE Mark approval and be launched during 2006.

"We believe that Maco Pharma, after receiving CE marking for P-CAPT(TM), will be the first to effectively launch a prion filter on the market," said Pierre Laurin, President and CEO of ProMetic. "This should favorably impact the value of PBL for its anticipated IPO", he added.

ProMetic BioSciences Inc. - Therapeutics

ProMetic's therapeutic group is advancing its two lead compounds:

Our scientists achieved additional milestones in the determination of PBI-1402 mechanism of action further supporting the activity of the drug on the production of red blood cells. While PBI-1402 is currently in Phase Ib/II, ProMetic is preparing for a US expansion of the clinical program.

A clinical trial in cancer patients is planned for 2006 with PBI-1393, a compound targeted for the treatment of selected cancers in combination with chemotherapy. Cytotoxic T-lympocytes (CTL) importance in their role in killing cancer cells is well established for breast, melanoma, renal cell carcinoma and pancreatic cancer. In in vitro experiments, PBI-1393 was demonstrated to enhance human CTL's activity to a biological level equivalent to Interleukin-2.

ProMetic scientists have now confirmed the molecular mechanism of action of PBI-1393. The toxicology studies for the compound are progressing well and are near completion with the drug on schedule to enter clinical trials by the end of 2006.

ProMetic BioTherapeutics, Inc.

ProMetic BioTherapeutics ("PBT") is a therapeutic plasma protein company. PBT's platform, a plasma protein purification system (PPPS), represents the next generation in plasma fractionation technology. PBT offers process solutions for plasma fractionators, optimizing protein yield and purity over current plasma protein recovery processes. While PPPS technology provides a yield advantage for classical plasma proteins, there are also untapped opportunities in the application of ProMetic's affinity ligand technology platform with established protein fractionators and companies within the blood industry for the development of more efficient processes for different plasma derived products.

PBT's development has been significantly slowed down following the demise of its licensee, Hemosol LP. A license agreement for the use of the PPPS technology in North America had been signed in 2004 with Hemosol which has since been in receivership. As previously announced, Hemosol, acting through its interim receiver PricewaterhouseCoopers Inc., has been in negotiations with a party ("the Plan Sponsor") for the potential acquisition of all of Hemosol's business and assets.

The Plan Sponsor has expressed its intent to revise the terms and conditions of the license agreement entered into between Hemosol LP and ProMetic, and in doing so, significantly alter some of the license agreement's main terms and conditions - including financial terms and intellectual property rights - which ProMetic considers unacceptable. ProMetic, in the spirit of good faith that has animated it from the beginning, has agreed to have discussions and proposed certain non-negligible modifications.

However, it is clear that ProMetic's main objective is to protect its interests and those of its shareholders. ProMetic is still willing to continue discussions with the Plan Sponsor, provided that the Plan Sponsor is willing to act fairly and reasonably going forward. Therefore, ProMetic plans to work closely with Hemosol and its stakeholders, as it explores all available options and possibilities which create value and maximize the opportunities for the PPPS technology.

About ProMetic Life Sciences

ProMetic Life Sciences Inc. is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand(TM) enabling 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 inflammation 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 and manufacturing facilities in the UK and business development activities in the US, Europe, Asia and MENA countries (Middle East and North Africa).

Additional information is available on the Company's website at www.prometic.com.

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, the Company'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 the Company 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 17 of the Company's Annual Information Form for the year ended December 31, 2005, 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.

Contacts:
Investor Relations
Lippert / Heilshorn & Associates, Inc.
Kim Golodetz
[email protected]

Lisa Lindberg
[email protected]
New York, NY, USA
+1 212 838 3777

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