Labopharm Completes Public Offering For Estimated Net Proceeds Of US$93.3 Million (CDN$104.8 Million), Including Exercise Of Over-Allotment Option

LAVAL, QC, May 3 /PRNewswire-FirstCall/ - Labopharm Inc. today announced the completion of its previously announced public offering of 12,650,000 common shares, which includes exercise in full of the underwriters' over-allotment option. The common shares were sold at a price of US$8.00 per share for total estimated net proceeds to the Company of US$93.3 million (CDN$104.8 million)(1), after deducting underwriting discounts and commissions and estimated offering expenses.

Merrill Lynch & Co. and Banc of America Securities LLC acted as joint book running managers in this offering. The syndicate also included Canaccord Capital Corporation, Leerink Swann & Company, Orion Securities Inc., Dundee Securities Corporation and Westwind Partners Inc. Copies of the final prospectus may be obtained by contacting Merrill Lynch at 4 World Financial Center, 250 Vesey Street, New York, NY 10080 (telephone: 212-449-1000) or Banc of America Securities at 100 W. 33rd Street, 3rd Floor New York, NY 10001 (telephone: 646-733-4166)

Labopharm plans to use the net proceeds from the offering to support the commercialization of its once-daily tramadol product, to advance development of existing and new product candidates within its product pipeline, and for working capital and other general corporate purposes.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

(1) conversion to Canadian dollars based on an exchange rate of 1.12375 About Labopharm Inc.

Labopharm Inc. is an international, specialty pharmaceutical company focused on the development of drugs incorporating Contramid(R), the Company's proprietary advanced controlled-release technology.

This press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward- looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the successful and timely completion of clinical studies, the uncertainties related to the regulatory process and the commercialization of the drug thereafter. Investors should consult the Corporation's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Corporation disclaims any obligation to update these forward-looking statements.

Labopharm Inc.

CONTACT: At Labopharm, James Howard-Tripp, President and Chief ExecutiveOfficer, Tel: (450) 686-1017, ir@labopharm.com; At The Equicom Group, JasonHogan - Toronto, Investor and Media Relations, Tel: (416) 815-0700,jhogan@equicomgroup.com

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