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AEterna Zentaris Reports Fourth Quarter and Full-Year 2008 Financial and Operating Results
Date:3/11/2009

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Moving forward, we will continue to concentrate our efforts on bringing cetrorelix closer to market in collaboration with our partner, sanofi-aventis. We believe that this compound could prove to be a novel treatment for the benefit of millions of men with BPH and also build value for our shareholders."

Dennis Turpin, Senior Vice President and Chief Financial Officer of AEterna Zentaris added, "The non-dilutive transactions and the recent partnership with sanofi-aventis have provided the Company with an overall stronger financial position and with the necessary funds to pursue our growth strategy."

CONSOLIDATED RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2008

Consolidated revenues were $7.2 million for the quarter ended December 31, 2008, compared to $10.2 million for the same quarter in 2007. The decrease in revenues is primarily due to lower quarter-over-quarter royalties related to our license agreement with Merck Serono. Subsequent to the sale of the Company's rights to royalties on future sales of Cetrotide(R), covered by the Company's license agreement with Merck Serono, to Cowen, which was effective, for royalty determination purposes, on October 1, 2008, our periodic amortization of the gross proceeds received from Cowen, while still recognized as royalty revenues, has been lower than the royalty revenues recognized in the past, as receivable directly from Merck Serono. Additionally, quarter-over-quarter sales and royalties decreased due to the absence of sales of Impavido(R) in the fourth quarter of 2008, while license revenues witnessed a decrease due to the non-recurrence in 2008 of milestone payments received from one of our partners, related to the perifosine Phase 2 trials.

Consolidated selling, general and administrative ("SG&A") expenses were $3.0 million for the quarter ended December 31, 2008, compared to $5.1 million for the same quarter in 2007. The decrease in SG&A expen
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SOURCE AETERNA ZENTARIS INC.
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