SAN DIEGO, CA, Feb. 24 /PRNewswire-FirstCall/ -- Stressgen Biotechnologies (TSX:SSB) announced today that the corporation has filed a Canadian amended and restated preliminary prospectus pursuant to which it intends to raise up to US$50 million. Stressgen has entered into an agreement with two broker- dealers (the "Agents"), under which the Agents have agreed on a best efforts basis to place common shares of the corporation. The offering price per share and the number of shares to be placed will be determined prior to the filing of the final prospectus. Stressgen plans to use the proceeds of the offering to fund development and commercialization of HspE7, its lead product candidate.

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United Sates absent registration or an applicable exemption from registration requirements. Stressgen Contacts: ------------------- Donna Slade Director, Investor Relations 6055 Lusk Boulevard San Diego, CA USA 92121 Tel: 858/202-4900 Dir: 858/202-4945 Fax: 858/450-6849 dslade@stressgen.com Jennifer Matterson Communications Coordinator 350-4243 Glanford Avenue Victoria, BC CANADA V8Z 4B9 Tel: 250/744-2811 Fax: 250/744-3331 jmatterson@stressgen.com

CONTACT: Stressgen Contacts: Donna Slade, Director, Investor Relations,6055 Lusk Boulevard, San Diego, CA, USA, 92121, Tel: (858) 202-4900, Dir:(858) 202-4945, Fax: (858) 450-6849, dslade@stressgen.com; JenniferMatterson, Communications Coordinator, 350-4243 Glanford Avenue, Victoria, BC,CANADA, V8Z 4B9, Tel: (250) 744-2811, Fax: (250) 744-3331,jmatterson@stressgen.com