Mistral Pharma Inc. Announces Licensing of a Patent Application for MIST-B02

MONTREAL, QUEBEC--(MARKET WIRE)--Aug 31, 2007 -- Mistral Pharma Inc. (CDNX:MIP.V - News) ("Mistral") announced today that it has licensed a method of use patent application from La Societe Therapprouve Inc., related to a new gastroenterology therapeutic indication for the drug included in Mistral's MIST-B02. As part of this licensing agreement, La Societe Therapprouve Inc. was granted 150,000 options to acquire common share of Mistral at a price of $0.10 per share, subject to vesting provisions. This grant was made pursuant to the stock options plan of Mistral.

"This licensing deal further increases the value of our MIST-B02 product to potential pharmaceutical partners" said Bertrand Bolduc, Mistral's President & CEO. "With a formulation and a patent application, MIST-B02 represents a very interesting product, especially for the US market where it would be a new chemical entity" he added. Mistral's second product, MIST-B02, is a controlled-delivery branded product in the gastroenterology field. MIST-B02 is targeting a brand product with more than US$ 100 M in worldwide annual sales.

About Mistral Pharma Inc.

Mistral Pharma is an innovative pharmaceutical product development and drug delivery company. Its first two branded drug delivery products, MIST-B01 & B02, showed positive results at their respective first pilot clinical trials. Mistral also has the Canadian rights to Instillagel®, a local anesthetic and antiseptic combination product used for urology procedures which is expected to be launched in Canada during Q4 2007. Mistral positions itself as a development and marketing partner for pharmaceutical companies. Additional information about Mistral Pharma can be obtained on Mistral Pharma's website at www.mistralpharma.com.

Forward-looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral Pharma. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral Pharma's products, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

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Contacts: Mistral Pharma Inc. Bertrand F. Bolduc, B.Pharm., MBA President & Chief Executive Officer 514-421-1717 # 2224 bbolduc@mistralpharma.com

Mistral Pharma Inc. Alain Provencher, CA, CF Vice-president, Finance & Chief Financial Officer 514-421-1717 # 2222 aprovencher@mistralpharma.com

Source: Mistral Pharma Inc.