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Haemacure Confirms Operation Qualification of Production Equipment and Pursues Milestone Payment from CSL
Date:12/4/2008

HAE:TSX

MONTREAL, Dec. 4 /PRNewswire-FirstCall/ - Haemacure Corporation (TSX:HAE), a Montreal-based specialty bio-therapeutics company developing high-value, human plasma-derived protein products for commercialization, announces that is has confirmed the successful operation qualification of the fibrin sealant production equipment at its new state-of-the-art plasma fractionation facility in Sarasota, Florida.

"I am very excited that we have achieved the important milestone of operation qualification, thus showing clear progress in our transition from a development to a manufacturing company. This allows us to take steps towards the next milestone of producing clinical lots of our lead product candidate, human fibrin sealant, and advancing it to market", said Joseph Galli, Chairman and CEO of Haemacure. "Achieving this milestone also triggers the contractual obligation of CSL Behring AG to pay Haemacure US$1.5 million", concluded Mr. Galli.

The successful operation qualification of the production equipment is one of three milestones the achievement of which obligates CSL Behring AG ("CSL") to pay to Haemacure US$4.5 million in total, pursuant to a settlement agreement entered into in 2002 in relation to its Hemaseel project. The achievement of each milestone obligates CSL to pay Haemacure US$1.5 million. As previously announced, CSL has advised Haemacure that, in its view, it is no longer obligated to make the milestone payments. Haemacure strongly disputes the position of CSL and has, as a result, filed a request for arbitration with the International Court of Arbitration of the International Chamber of Commerce to assert its right to collect the contractual milestone payments and, in particular, the payment due upon the operation qualification of production equipment. Haemacure plans on achieving the second milestone during the first half of 2009 and the third milestone during the following 12 months.

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SOURCE Haemacure Corporation
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