AEterna Zentaris Announces Research Project With The University Of Montreal On Its Ghrelin Antagonist Compounds For Obesity At Annual General Meeting

MONTREAL, May 3 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. today announced, at its Annual General Meeting, a partnership agreement with the University of Montreal to launch a preclinical research project on the role of ghrelin in the development of obesity. This project, led by Huy Ong, Professor at the Faculty of Pharmacy, at the University of Montreal, will be conducted during a three-year period with an initial budget of C$1.2 million.

Ghrelin is a recently-discovered natural hormone secreted by the stomach which increases appetite and also induces accumulation of fat tissue. Therefore, developing ghrelin antagonist molecules could lead to appetite suppression and to the development of novel treatment for obesity. AEterna Zentaris developed many small orally-bioavailable molecules which could have ghrelin antagonist properties, while the University of Montreal has produced a unique and innovative model which will enable to identify those AEterna Zentaris molecules which antagonize the effect of ghrelin on the accumulation of fat tissue. Such molecules could eventually become a treatment against obesity and other related metabolic disorders.

"We are very pleased to start the transfer from Europe to Canada of promising molecules against obesity. There is a great need for novel treatments in this indication which represents a large market potential. Ghrelin is an attractive new target for drugs in endocrinology and this research project represents a further step in building a portfolio of novel products in order to position AEterna Zentaris as a biopharmaceutical company with a focus on endocrinology and oncology," said Gilles Gagnon, President and Chief Executive Officer at AEterna Zentaris. "Both Canada and Quebec have excellent R&D infrastructures and world-renowned researchers, such as Professor Ong and his team, and with whom we are proud to be associated today."

"We are very excited to start this collaboration with AEterna Zentaris," mentioned Dr. Jacques Turgeon, Vice Rector of Research at the University of Montreal. "This alliance between the private industry and the University community greatly contributes to the development and prominence of scientific research in Quebec, which can lead to significant discoveries and applications in healthcare."

"The interest in ghrelin as a potential therapeutic target has increased significantly over the last two years especially in obesity which has become epidemic," said Dr. Jurgen Engel, Executive Vice President, Global Research and Development and Chief Operating Officer at AEterna Zentaris. "We have worked with growth hormone modulators since 1998 and over the last two years, we have synthetized and tested more than 250 substances for their binding affinity to a ghrelin receptor. The project with Montreal University could bring a new drug candidate to the clinical stage within the next couple of years."

Ghrelin and Ghrelin Antagonists

Ghrelin is a natural peptide hormone produced by the stomach that increases appetite and induces accumulation of fat tissue. The recent discovery of ghrelin and its receptors opens up new opportunities for the treatment of obesity and eating disorders through the use of ghrelin antagonists to suppress appetite.

AEterna Zentaris actually has other ongoing preclinical research studies for the development of ghrelin antagonists which could apply to eating disorders, in collaboration with the Laboratory of Aminoacids, Peptides and Proteins of the University of Montpellier, France, directed by Prof. Jean Martinez, and with the Department of Experimental and Environmental Medicine of the University of Milan, Italy, directed by Prof. Vittorio Locatelli.

About the Obesity Market

There is no safe and effective appetite suppressant currently on the market. It is estimated that between 34 million to 61 million Americans are obese, and the worldwide incidence of obesity is increasing by an estimated 1% per year. The global obesity market is expected to reach US$3.7 billion by 2008, with annual growth of 21.1%.

AEterna Zentaris' presentation at the Annual General Meeting will be available on the Company's website at www.aeternazentaris.com, by noon, on Wednesday, May 3, 2006.

AEterna Zentaris Inc.

AEterna Zentaris Inc. is a growing global biopharmaceutical company focused on oncology and endocrine therapy with proven expertise in drug discovery, development and commercialization.

AEterna Zentaris also owns 48.29% of the equity of Atrium Biotechnologies Inc. and 64.7% of its voting rights. Atrium is a developer, manufacturer and marketer of science-based products for the cosmetics, pharmaceutical, chemical and nutritional industries.

News releases and additional information are available at www.aeternazentaris.com.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, among others, 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. Investors should consult the Company's quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to the forward-looking statements. Investors are cautioned not to rely on these forward-looking statements. The Company does not undertake to update these forward-looking statements.

AETERNA ZENTARIS INC. (FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA

CONTACT: AEterna Zentaris Inc.: Media Relations, Paul Burroughs, (418)652-8525, ext. 406, paul.burroughs@aeternazentaris.com,jenene.thomas@aeternazentaris.com; Investor Relations, Jenene Thomas, (418)655-6420 or (908) 996-3154; University of Montreal: Guillaume Roy, (514)343-7891, guillaume.roy@umontreal.ca; To request a free copy of thisorganization's annual report, please go to http://www.newswire.ca and clickon reports@cnw.