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ARIUS announces fourth quarter and year-end fiscal 2007 financial results
Date:1/29/2008

s non-executive Chair

of the Board of Directors.

Financial Results:

All amounts are in Canadian dollars unless otherwise indicated.

For the year ended November 30, 2007, the Company recorded a net loss of $11,057,039 compared to a net loss of $6,444,189 for the year ended November 30, 2006. The increase in net loss was the result of higher research and development, general administrative and foreign exchange expenses and lower revenues, partially offset by lower interest expense and the absence of a loss on extinguishment of debt. For the three-month period ended November 30, 2007, the Company recorded a net loss of $2,952,338 compared to a net loss of $3,623,727 for the three-month period ended November 30, 2006. This decrease in net loss for the three-month period is primarily the result of lower research and development, general and administrative and interest expenses and the 2006 one time loss on extinguishment of debt of $782,143 relating to the repayment of the convertible bridge loan, partially offset by higher foreign exchange losses and income tax expense.

Revenue decreased to $1,144,094 for the year ended November 30, 2007, compared to $2,847,761 for the year ended November 30, 2006. The decrease during the year ended November 30, 2007, was primarily the result of the recognition of licensing fee revenue from Genentech in the fiscal 2006 period and a decrease in financial contributions from the National Research Council's Industrial Research Assistance Program, partially offset by the recognition of product and research contract revenue from the Takeda collaboration and the recognition of unearned revenue for PDL BioPharma Inc. in the fiscal 2007 period. For the three-month period ended November 30, 2007, the Company's revenue increased to $298,120 compared to $179,751 for the three-month period ended November 30, 2006. The increase was primarily the result of the recognition of product and research contract revenue fr
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