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AEterna Zentaris Announces Outcome of Management's Strategic Review
Date:10/2/2007

he Company provided clarity regarding its partnered development

programs. The Company will minimize internal spend on partnered

programs while continuing to respect its contractual obligations to

support its partners for the development of ozarelix, perifosine,

AEZS-127 and AEZS-130. AEterna Zentaris will employ a "piggy back"

registration strategy to bring these products to market in the

territories where is retains rights as commercial opportunity size

dictates.

- The Company prioritized the advancement of preclinical and very

early-stage development programs based on risk-adjusted maximum market

potential.

- The Company established a clear global partnering strategy moving

forward:

- All commercially viable projects will be ideally developed internally

through proof-of-concept in man

- Asia (especially Japan) remains a market of interest for AEZS

- The Company also identified non-core assets and will actively seek to

monetize/divest these assets as a potential source of non-dilutive

funding.

- The Company provided updated guidance for the 2007 total expected burn

in a range of $25-$27 million. Additionally, in an effort to ensure

financial flexibility, the Company recently filed a shelf prospectus.

"It has been our guiding principle to communicate the complete picture of AEterna Zentaris as it is and as it is planned to be with updated timelines, priorities, key issues and expectations. After a rigorous review of the projects, risks, plans and commercial opportunities, we are more bullish than ever about the unrealized intrinsic value of AEZS and our ability to unlock it to the benefit of patients and shareholders," concluded Dr. Mazzo.

Conference call and Webcast

Participants may access the live webcast via the Company's website at

SOURCE AETERNA ZENTARIS INC.
Copyright©2007 PR Newswire.
All rights reserved

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