Quebec, Canada, March 3rd 2004 - Dr Richard Lacombe President and Chief Executive Officer is pleased to announce that Virocell has successfully concluded an asset transfer agreement of its lead product BG-777, an immunomodulator that activates the antimicrobial host defense, with LTB4 AB a Stockholm-based Swedish company.

Virocell was founded in 1995 by two researchers Dr Jean Gosselin and Pierre Borgeat from the CHUL (Centre Hospitalier de l’Université Laval) Research Center. LTB4 AB is a newly formed company financed by HealthCap one of the largest Venture capitalist fund in Europe.

The terms and conditions were not disclosed, but the deal is worth several millions. The agreement includes the development of BG-777 in Phase II for different indications with pre-clinical research activities remaining in Quebec. Dr Pierre Borgeat will assume important scientific responsibilities in the new company. “ The scientists at LTB4 AB have previously been involved in research product closely related to BG-777, resulting in the best chance of success in the clinical development of BG-777 Dr Lacombe said”.

“In this very difficult time for private financing in Quebec, we are happy with this transaction” said André Lamothe Chairman of the Board of Virocell.

Mr. Carl-Johan Dalsgaard, partner of HealthCap and CEO of LTB4 AB, mentioned that “the BG-777 is a very interesting compound with unique properties.”

Contacts:
Dr. Richard Lacombe, Ph.D., MBA
President and CEO
(418) 780-8149
richard.lacombe@virocell.com

Carl-Johan Dalsgaard
HealthCap AB and LTB4 AB
Tel. : 0-11-46-84-42-58-63
carl-johan.dalsgaard@ofco.se