Inflazyme Pharmaceuticals Announces Escrow Closing of Private Placement

Market Wire, July, 2008

Inflazyme Pharmaceuticals Ltd. (NEX: IZP.H) announced today that it has closed in escrow a $300,000 non-brokered unit private placement (the "Offering") for 15,000,000 (3,750,000 post-consolidation) Units (the "Units"). Each Unit consists of one common share and one warrant to purchase a common share (a "Warrant"). The Units were priced at $0.02 ($0.08 post consolidation) per Unit. Each Warrant entitles the holder to acquire one common share at a price of $0.025 ($0.10 post-consolidation) for a period of 12 months. The warrants will not be eligible for listing.

The Shareholders will be asked at the August 18, 2008 annual and special shareholders' meeting to vote to approve the Offering along with other matters relating to the future direction of Inflazyme. The matters to be voted on by shareholders were described in our press release dated June 12, 2008.

The Offering is also subject to other regulatory approvals. The TSX Venture Exchange (NEX) does not accept responsibility for the adequacy or accuracy of this release.

Inflazyme's AGM and Special Meeting will be held at 10.00am on August 18, 2008, at the Vancouver Marriott Pinnacle Downtown Hotel, 1128 Hastings Street, Vancouver, British Columbia, V6E 4R5, Canada.

About Inflazyme

Further information on the Company may be obtained from its website at www.inflazyme.com .

This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of our future financial position or operations. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should" and other similar expressions are forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve numerous factors, assumptions and estimates, some but not all of the factors that could cause actual results to differ materially from those projected in our forward-looking statements include among others: risks associated with the completion of clinical trials and obtaining regulatory approval to market our products, market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain and develop partnership opportunities; and other risk factors identified from time to time in the Company's regulatory filings. For a further description of the principal risks affecting the Company, see our regulatory filings. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements.

Contacts: Inflazyme Pharmaceuticals Ltd. Michael Liggett Chief Financial Officer Toll Free: 1-800-315-3660 or (604) 279-8511 (604) 279-8711 (FAX) Website: www.inflazyme.com