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AEterna Zentaris Reports Second Quarter 2009 Financial and Operating Results
Date:8/11/2009

ll the necessary efforts to bring cetrorelix to market."

Dennis Turpin, the Company's Senior Vice President and Chief Financial Officer, added, "We were pleased to complete a $10 million registered direct offering during the quarter. This vote of confidence from institutional investors provides us with additional funds that will be used mainly to further strengthen our promising oncology pipeline."

    CONSOLIDATED RESULTS AS AT AND FOR THE THREE-MONTH PERIODS ENDED
    JUNE 30, 2009

Consolidated revenues were $8.4 million for the three-month period ended June 30, 2009, compared to $10.5 million for the same period in 2008. This decrease is related to lower royalty revenues having been recognized in the second quarter of 2009 in connection with the Company's agreement with Merck Serono, where amortization of the proceeds received from Cowen for the three-month period ended June 30, 2009 was lower than the royalty revenues generated and payable directly by Merck Serono during the second quarter of 2008. The comparative decrease in sales and royalties is also attributable to euro to US dollar exchange rate fluctuations, given the comparative strengthening of the US dollar in the second quarter of 2009 vis-a-vis the euro, and despite the increase in licence fee and other comparative revenues.

Consolidated R D costs, net of tax credits and grants, were $12.1 for the three-month period ended June 30, 2009 compared to $17.3 million for the same period in 2008. The comparative decrease in net R D costs is largely attributable to a lower volume of expenses incurred in connection with the continued advancement of the Company's Phase 3 program for its lead compound, cetrorelix, in BPH, as well as to euro to US dollar exchange rate fluctuations, as discussed above.

Consolidated selling, general and administrative ("SG A") expenses were $3.1 million for the three-month period ended June 30, 200
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SOURCE AETERNA ZENTARIS INC.
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