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Aeterna Zentaris Reports Fourth Quarter and Full-Year 2007 Financial and Operating Results
Date:3/5/2008

TH QUARTER ENDED DECEMBER 31, 2007

Consolidated revenues were $10.2 million for the fourth quarter ended December 31, 2007 compared to $11.9 million for the same quarter in 2006. The decrease in revenues is attributable to lower sales of Impavido(R), as well as active pharmaceutical ingredients to the Company's partners, combined with lower license fees from the Company's partners.

Selling, General and Administrative (SG&A) expenses were $5.1 million for the fourth quarter ended December 31, 2007 compared to $4.2 million for the same quarter in 2006. The increase in SG&A is mainly related to the support of the continuation of a Phase 3 program with cetrorelix in benign prostatic hyperplasia (BPH) and the opening of a new operational headquarters in New Jersey.

Consolidated Research & Development (R&D) expenses were $13.6 million for the fourth quarter ended December 31, 2007 compared to $7.9 million for the same quarter in 2006. The increase in R&D expenses relates to the continuation of the Company's Phase 3 program with cetrorelix in BPH.

Consolidated net loss was $13.6 million or $0.26 per basic and diluted share for the fourth quarter ended December 31, 2007 compared to consolidated net earnings of $39.1 million or $0.74 per basic and diluted share for the same quarter in 2006. The increased net loss in the fourth quarter 2007 is related to higher loss from operations of nearly $5.2 million mainly related to increased R&D expenses, as well as to lower income tax recovery of nearly $28.4 million attributable to the recognition of future income tax assets mainly related to the sale of Atrium shares in 2006 and the special distribution of the Company's remaining interest in January 2007, combined with the decrease in net earnings from Atrium's discontinued operations of approximately $16.3 million.

The consolidated cash and short-term investments were $41.4 million as of December 31, 2007.

CONSOLIDATED RESULTS FOR THE FULL
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SOURCE AETERNA ZENTARIS INC.
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