AEterna Zentaris Reports First Quarter 2008 Financial and Operati...(alties andcommission expenses related to...)

Consolidated R&D costs, net of tax credits and grants were $13.7 million for the three-month period ended March 31, 2008 compared to $7.9 million for the same period in 2007. Additional R&D expenses of $5.8 million spent in the first quarter 2008 compared to the same period in 2007 are mainly related to the advancement of our lead product cetrorelix in Phase 3 for BPH, as well as further advancement of targeted, earlier-stage development programs including AEZS-108 and AEZS-112, our tubulin inhibitor, both of which are in oncology.

Consolidated net loss for the three-month period ended March 31, 2008 was $10.9 million or $0.20 per basic and diluted share, compared to $5.1 million or $0.10 per basic and diluted share for the same period in 2007. The increase in net loss is primarily attributable to the increased R&D costs related to the advancement of cetrorelix in Phase 3 for the treatment of BPH.

The consolidated cash and short-term investments were $38.7 million as of March 31, 2008.

CONFERENCE CALL

Management will be hosting a conference call for the investment community beginning at 4:00 p.m. Eastern Time today, Wednesday, May 7, to discuss first quarter 2008 results.

To participate in the live conference call by telephone, please dial 416-644-3425, 514-807-8791 or 800-796-7558. Individuals interested in listening to the conference call on the Internet may do so by visiting http://www.aezsinc.com. A replay will be available on the Company's Web site for 30 days.

About AEterna Zentaris Inc.

AEterna Zentaris Inc. is a global biopharmaceutical company focused on endocrine therapy and oncology with proven expertise in drug discovery, development and commercialization.
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