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Labopharm Reaquires UK Sales And Marketing Rights to Its Once-Daily Tramadol Product
Date:7/7/2008

- Company to Engage Contract Sales Organization And Seek New Marketing

Partner to Promote Product in UK -

LAVAL, QC, July 7 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced that it has reacquired the sales and marketing rights to its once-daily tramadol product (Tradorec XL(R)) for the United Kingdom from Recordati Ireland Ltd. (Recordati). To promote its product in the UK, the Company will engage a contract sales organization and pursue a new licensing and distribution agreement with an appropriate marketing partner.

"Our once-daily tramadol product is achieving strong market penetration, particularly in Spain, Italy and Canada, and we believe that this success can be replicated in the UK with the appropriate sales and marketing effort behind Tradorec XL(R)," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "The market for tramadol products in the UK continues to exhibit strong growth and we are confident in both our product and its prospects in this market."

Under its agreement with Recordati to reacquire the UK rights to its once-daily tramadol product, Labopharm will continue to use the brand name Tradorec XL(R) in marketing its product. Labopharm will also receive a (euro)700,000 milestone from Recordati upon termination of Recordati's rights.

Labopharm is in discussions to finalize an agreement with a contract sales organization to promote Tradorec XL(R) in the UK. The Company is also in discussions to establish a licensing and distribution agreement with a new marketing partner.

The UK is the second largest European market for tramadol products (on a standard units basis) and one of the fastest growing of the five largest European markets for tramadol products (on a standard units basis). The UK tramadol market has experienced compound annual growth of 18% over the last five 12-month periods ended March 30.

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