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Cytopia Merger with Toronto-based YM BioSciences Inc.
Date:10/5/2009

YM, leading to clinical data from both programs as early as 2010.

A Board meeting of Cytopia unanimously recommended that the acquisition of Cytopia's shares and options is in the best interests of Cytopia shareholders and Cytopia optionholders, and as such those holders should vote in favour of all resolutions to be proposed at the Scheme meetings, subject to there being no Superior Proposal and to the Independent Expert confirming that the Scheme(s) are in the best interests of Cytopia shareholders and Cytopia optionholders as the case may be.

"With their broad international reach and strong cancer focused clinical development expertise, we believe YM is an excellent partner for Cytopia," said Mr. Andrew Macdonald, Chief Executive Officer of Cytopia. "This merger provides the best opportunity available for the continued development and expansion of our lead programs and also provides our shareholders with exposure to a broader portfolio of potential cancer therapies and geographic diversification. We welcome the opportunity to establish a direct YM presence in the Australasian region and contribute to the ongoing success of the merged entity."

"This transaction should deliver an excellent outcome for both groups of shareholders. It is a significant step in developing a wide portfolio of cancer related products to maximise success and to better manage risk," said Mr. David Allan, Chairman and Chief Executive Officer of YM. "We recognise the potential and quality of the Cytopia programs and believe that this combination enhances the opportunity to bring new cancer drugs to international markets."

The Australian operations will be operated under the YM name following completion of the transaction. Pursuant to the provisions of the Agreement, Mr. Bob Watson, Chair of Cytopia will be appointed to the board of YM.

Conference Call

YM BioSciences will host a conference call for analysts and po
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