Microbix Biosystems Inc. Provides Update on Urokinase Project Financing

TORONTO, March 28 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. announced today that several parties have expressed strong interest in financing the continuing development of the Company’s Urokinase product for use in dissolving blood clots and cancer therapies.

Microbix expects financing to be in place in 2007. The funds will be used to conduct clinical trials and proceed to commercialization.

“This interest in Urokinase reflects its value as a platform for a number of indications we are pursuing,” said Company Chairman and CEO William J. Gastle.

As a thrombolytic, or ‘clot-busting’ drug, Urokinase has benefited more than five million patients and has had an excellent safety and patient-tolerance record. Today, Microbix is the only commercial-scale manufacturer of this drug.

“The market potential for a new specific Urokinase-based thrombolytic drug is in excess of $100 million annually. At the same time, the development risk is relatively low as other similar products have been on the market for many years,” said Mr. Gastle.

Microbix is collaborating with Angiogen LLC in the development of the oncology therapy that combines Urokinase with a second small molecule drug. Angiogen holds U.S. patents for the use of Urokinase in oncology.

This combination drug therapy works by cutting off the blood supply to solid tumours and thereby destroying them. The therapy has already shown positive results in patients, including some clinical efficacy data. Because both drugs in the anti-cancer combination are well known and have been FDA-approved for other indications, and therefore are known to be safe, the partners expect that this program will be able to move relatively quickly to market.

The potential market for Urokinase as an oncology drug is over $1 billion annually. The therapy shows promise for treating colon, prostate and other solid human cancers.

Microbix’ business strategy has been to develop its large-market products, such as Urokinase, through profits generated in its platform virology business until external funds are available. “This strategy has played a large part in positioning Microbix in the Urokinase business,” said Mr. Gastle. “Once financing is completed, we will return to positive cash flow as the platform business continues to be profitable.”

Completion of the financing would be a major accomplishment for Microbix. Urokinase is the lead product in the Company’s pipeline and financing for clinical trials would be a significant market validation.

“We are making this announcement today to keep the market up to date on this important program,” Mr. Gastle stated.

Microbix specializes in developing proprietary biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto.

This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with failure to complete agreements to finance, develop and commercialize Urokinase on a timely basis, non-adoption of the drug combination, resistance to business model for commercialization and implementation; risks associated with commercializing the technologies; and risks associated with the efficacy of the drug combination in cancer treatment and the thrombolytic indication. These forward-looking statements represent the Company’s judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

Microbix Biosystems Inc.

CONTACT: visit www.microbix.com or contact William J. Gastle, Chairman andCEO, (416) 234-1624 x 230