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AEterna Zentaris and Paladin Labs Complete Sale and Purchase of Miltefosine Rights
Date:4/1/2008

QUEBEC CITY and MONTREAL, April 1 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ), a global biopharmaceutical company focused on endocrine therapy and oncology, and Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, announced today that, on March 31, 2008, they completed the transactions under their previously announced purchase and sale agreement with respect to all rights related to the manufacture, production, distribution, marketing, sale and/or use of miltefosine. The aggregate purchase price for the transaction was Cdn$9.125 million payable in cash, subject to certain post-closing purchase price adjustments.

About miltefosine

Miltefosine is a phosphocholine analogue currently marketed under the brand name Impavido(R), the first oral drug for the treatment of visceral and cutaneous leishmaniasis. Impavido(R) has been proven to be highly effective and less toxic than currently available treatments. Other currently available treatments are liposomal amphotericin (Ambisome(R)) and Paromomycin.

About leishmaniasis

Leishmaniasis is an infectious disease transmitted by the bite of the phlebotomine sandfly. The cutaneous form of the disease normally produces skin ulcers on the exposed parts of the body such as the face, arms and legs. The visceral form - also known as kala azar - is characterized by irregular bouts of fever, substantial weight loss, swelling of the spleen and liver, and anemia (occasionally serious).

According to the World Health Organization, the disease is endemic in 88 countries with nearly 350 million people at risk. If untreated, visceral leishmaniasis can result in death within 6 months to 2 years. There are more than one millio
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SOURCE AETERNA ZENTARIS INC.
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