An Exceptional Year for BioCapital.

MONTREAL--(BUSINESS WIRE)--June 19, 1998--"The completion of an initial public offering of $39.1 million; portfolio investments under management that have grown from $21.8 million to more than $70 million presently: these are the revealing numbers of BioCapital's dynamic strategy", stated Mr. Balthazard, President and CEO of BioCapital Investments Limited Partnership (ME:BCK.IR.A.) (TSE:BCK.IR.A.) at the annual meeting of shareholders.

On total investments during the period ended December 31, 1997, the Partnership reinvested $7.3 million in its portfolio companies, namely, Quantum, Biovet and Cryocath. Moreover, new investments of $7.2 million were directed to Neokimia, AFCAN, Oxford BioScience Partners II, RedCell, Intellivax and RTP Pharma. Finally, to take advantage of the excellent stock market performance in the Biotechnology sector, BioCapital has committed $7.3 million to Canadian and American public companies.

On July 17th, 1997, the assets of BioCapital I, BioCapital II and BioCapital III, equal to $32.6 million, were transferred to BioCapital Investments a new Limited Liability Partnership listed on the Montreal Exchange on July 18th, 1997. The year's results were a net loss of $603,082 or $0.11 on a per share basis.

The BioCapital portfolio investments had a market value of $45.4 million on December 31, 1997, representing an appreciation of $7.8 million over the acquisition cost of $37.6 million.

Even before the end of the first quarter in 1998, BioCapital will have invested $21.9 million, $12.5 million in new investments, and $6.2 million reinvested in private companies. Moreover, $2.1 million was invested in public companies for the first time and $3 million in public companies already in BioCapital's portfolio. In the same quarter BioCapital realized $1.9 million on the sale of public company shares.

Furthermore, the Fonds de solidarite des travailleurs du Quebec (FTQ) acquired 1,055,777 additional shares for $10 911 585 (unit cost of $10,341) which brings its holding in the Partnership to about 61.8 percent. The main partners of BioCapital are (other than the Fonds de solidarite des travailleurs du Quebec (FTQ) : Societe Innovatech du Grand Montreal, BioChem Pharma Inc., the Royal Bank Financial Group, the National Bank of Canada, the Banque de Vizille and BioCapital Management Inc.

BioCapital is a public investment company which offers investors a diversified portfolio of healthcare and biotechnology sector companies.

These companies offer a range of products (from therapeutic and diagnostic, to medical equipment and services) which are anywhere from the research and development stage, to clinical trial up to commercialization. BioCapital distinguishes itself by the scientific expertise of its management team and it rigorous investment decision making.

    CONTACT:  BioCapital Investments Limited Partnership
               Normand Balthazard, 514/687-2028