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AEterna Zentaris Receives US$5.5 Million from Institutional Investors
Date:10/24/2009

QUEBEC CITY, Oct. 23 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ), (the "Company") a global biopharmaceutical company focused on endocrine therapy and oncology, announced today that it has completed its previously announced registered direct offering of US$5.5 million of units comprised of common shares and common share purchase warrants to certain institutional investors. AEterna Zentaris received net proceeds of approximately US$5.1 million after deducting placement agent fees and other offering expenses. All of the common shares and warrants were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including clinical development of the Company's leading compounds.

Juergen Engel, Ph. D., President and CEO of AEterna Zentaris stated, "We are very pleased with this vote of confidence from targeted specialized institutional investors. In addition, completing this financing provides us with additional funds that will help us to continue to further strengthen and advance our promising pipeline."

As of October 23, 2009 and after issuing 4,583,335 common shares at the closing of the offering, the Company had 63,089,954 common shares issued and outstanding without giving effect to or assuming the exercise of any outstanding warrants.

A shelf registration statement relating to the common shares and warrants issued in the offering (and the common shares issuable upon exercise of the warrants) has been filed with the Securities and Exchange Commission (the "SEC") and has been declared effective. A prospectus supplement relating to the offering was filed with the SEC. Copies of the prospectus supplement and accompanying prospectus may be obtained directly from AEterna Zentaris Inc., 1405 du Parc-Technologique Bouleva
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SOURCE AETERNA ZENTARIS INC.
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