ProMetic to Obtain Controlling Stake in Pathogen Removal and Diagnostic Technologies Inc.

ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic") announces that ProMetic has signed a Letter of Intent ("LOI") to acquire the American Red Cross' ("ARC") common stock holding in Pathogen Removal and Diagnostic Technologies Inc. ("PRDT"), the joint venture established by ProMetic and ARC in 2002 to develop and commercialize products to diagnose and reduce pathogens in blood, blood derivatives, biopharmaceuticals and other biological products.

The transaction contemplated by the LOI is a natural progression following commercialization of the P-Capt® filter and the prion reduction resin that was fully licenced to ProMetic.

The terms of the LOI provide for an ongoing royalty stream to ARC based on income derived from PRDT technology. In exchange, ProMetic will raise its ownership position in PRDT to 77% by acquiring ARC's 51% stake in PRDT. The remaining 23% will continue to be held by the academic co-founders. ARC will continue to hold its preferred stock and maintain representation on the Board of Directors.

"With the commercialization of the PRDT technology well underway and the projected strong market demand for this technology, ProMetic's increased stake in PRDT to 77% will allow for the revenues derived from the technology to be fully consolidated into ProMetic's financial results," stated Mr. Bruce Pritchard, ProMetic's Vice President of Corporate Development. Mr. Pritchard added: "The structure of this deal is beneficial to both parties, allowing ARC to share in the ongoing success of the jointly developed technology, whilst not requiring a cash payment by ProMetic".

"ARC has played a pivotal role within PRDT in advancing the technology to a point of commercialization," commented Dr. Peter Edwardson, Vice President of Medical Technologies at ProMetic's UK division. "The P-Capt® prion reduction filter, in addition to the use of the prion capture affinity resin for biopharmaceutical use, has moved from an R&D focus to a commercial focus."

According to Dr. Steve Burton, Chief Executive Officer of ProMetic's UK division, "PRDT is uniquely positioned to capitalize on the growing market for prion removal. Corporate control moving from ARC to ProMetic will allow the business to be driven forward in a highly commercial fashion, allowing the full potential to be earned from the technology."

About Variant Creutzfeldt-Jakob Disease

Variant Creutzfeldt-Jakob disease ("vCJD") is a fatal central nervous system disorder which incubates without symptoms for ten years or more before beginning an inexorable clinical progression to death over a 6 to 24 months period. vCJD first appeared in 1996 following a massive exposure of the UK population to BSE contaminated meat and other bovine products during the previous decade. So far, most of the infections have occurred in children and young adults who accumulate characteristic depositions of misfolded prion proteins in their brains and other nervous tissues. The death of neurons gives a sponge-like appearance to the brain. Even though the first wave of vCJD cases has peaked, scientists remain concerned that other peaks will follow. This is because the first cases were from a single genetic subgroup of the prion protein that appears to have a shorter incubation time than other prion genotypes. Infections in these other genotypes may still be incubating. A survey of surgically removed tissues analyzed for abnormal prion protein estimated a minimum of 3,800 asymptomatic vCJD carriers in the UK. The number could be much larger. vCJD carriers appear normal and donate blood with the same frequency as the general population. So far there have been four recognized cases of transmission of vCJD by transfusion of blood donated by persons incubating the disease. Transfusion transmission appears to be highly efficient in humans and animals. The 2006 National CJD Surveillance Unit report concluded that "the incidence of vCJD may increase again, particularly if different genetic subgroups are found but with longer incubation periods". Abnormal prion proteins are an essential component of vCJD infectivity and may be the only component. The adsorption of prion proteins by PRDT ligands removes vCJD infectivity.

For additional information please refer to the following articles:

Gregori L, Lambert BC, Gurgel P et al. Reduction of transmissible spongiform encephalopathy infectivity from human red blood cells with prion protein affinity ligand. Transfusion 2006; 46:1152-1161

Wroe SJ, Pal S, Siddique D, et al. Clinical presentation and pre-mortem diagnosis of variant Creutzfeldt-Jakob disease associated with blood transfusion : a case report. Lancet 2006; 368:2061-67

About ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc. ("ProMetic") ( www.prometic.com ) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand(TM) technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.