QUEBEC CITY, QC, May 30 /CNW/ — Medicago Inc. ("Medicago") (TSX Venture: MDG), a developer and manufacturer of vaccines and therapeutic proteins using its rapid and cost effective plant-based platform, is pleased to announce that it has successfully completed a private placement of 4,000,000 units (the "Units") at a price of $0.50 per Unit for gross proceeds to Medicago of $2,000,000, each Unit consisting of one common share of Medicago and one common share purchase warrant. Each common share purchase warrant entitles the holder thereof to purchase one common share at a price of $0.75 at any time prior to 5:00 p.m. (Montreal time) on the date that is 24 months following the closing date of the private placement. The common shares, the common share purchase warrants and the common shares and common share purchase warrants underlying the agent's compensation option as well as the common shares underlying the common share purchase warrants are all subject to a four-month hold period expiring on September 30th, 2007. Dundee Securities Corporation ("Dundee") acted as agent in the private placement on a best efforts basis. As such, Dundee received a compensation of $140,000, representing 7% of the amount raised from purchasers identified by it. Furthermore, Medicago issued to Dundee, a compensation option, exercisable at the offering price for a period of 24 months following the closing date of the private placement, representing 7% of the number of Units issued pursuant to the private placement.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of Medicago in the United States. The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or unless an exemption from such registration is available.

About Medicago Inc.:

Medicago is a biotechnology company focused on the development, production and commercialization of vaccines and therapeutic protein-based biopharmaceuticals using a proprietary manufacturing system developed from its expertise in the genetic engineering of plants. Medicago's Proficia technology offers speed, flexibility and cost advantages that can greatly improve the accessibility of today's emerging vaccines and biopharmaceuticals for both partners and patients. Medicago is developing its own proprietary pipeline of vaccines and also has established collaboration agreements notably with Acambis PLC (LSE: ACM, www.acambis.com) for the development of several products.

Forward Looking Statements

This press release contains forward-looking statements which reflect the company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The company disclaims any obligation to update these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this press release.

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For further information:

Medicago Inc.,
Andrew J. Sheldon,
President and Chief Executive Officer,
(418) 658-9393,
info@medicago.com,
www.medicago.com;

The Equicom Group Inc.,
Eric Bouchard,
(514) 844-7997,
ebouchard@equicomgroup.com