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

YEAR ENDED DECEMBER 31, 2007

Consolidated revenues for the year ended December 31, 2007 were $42.1 million compared to $38.8 million for the same period in 2006. The increase in revenues for 2007 is mainly related to increased sales of Cetrotide(R) and Impavido(R), partly compensated by lower license fees revenues from the Company's partners.

Consolidated R&D costs were $39.2 million for the year ended December 31, 2007 compared to $27.4 million for the same period in 2006. The increase in R&D expenses of $11.8 million in 2007 is mainly related to the advancement of the Company's lead product cetrorelix in Phase 3 for BPH; as well as to further advancement of targeted, earlier-stage development programs including AEZS-108, a cytotoxic conjugate and AEZS-112, a tubulin inhibitor.

Consolidated loss from operations increased to $34.8 million for the year ended December 31, 2007 compared to $23.8 million for the same period in 2006. The increase in loss from operations in 2007 is attributable to a combination of lower license revenues, increase in non-recurring G&A corporate expenses and additional R&D expenses mainly related to the advancement of the Company's Phase 3 program with cetrorelix in BPH. This increase in loss from operations in 2007 was partly offset by increased sales and royalties, as well as lower D&A expenses.

Consolidated net loss was $32.3 million or $0.61 per basic and diluted share for the year ended December 31, 2007 compared to consolidated net earnings of $33.4 million or $0.64 per basic share and $0.62 per diluted share for the same period in 2006. The increased net loss in 2007 is related to a higher loss from operations of nearly $10 million, lower income tax recovery of nearly $27 million related to the recognition of future income tax assets, mainly attributable to the sale of Atrium shares in 2006, and the special distribution of AEterna Zentaris' remaining interest in January 2007, as well as lower net earnings
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SOURCE AETERNA ZENTARIS INC.
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