AngioChem Completes a $6 Million Financing to Advance CNS Drug Development.

LAVAL, Quebec -- AngioChem Inc., a biotechnology company focused on developing innovative drugs for the treatment of brain diseases, announced today that it has completed a private financing, raising a total of $6 million. The financing was led by BDC Venture Capital and Boston-based VIMAC Milestone Medica Fund (VMM).

"BDC was instrumental in guiding management towards the key proof of concept experiments over the past year as well as working with us to facilitate this round. We are eager to work with them and management to drive AngioChem's innovative therapies into the clinic" said Dr. Sena Biswas, Managing Director of VMM.

AngioChem expects to file an IND for the treatment of brain cancer in late 2006 and enter a Phase 1/2 clinical trial in 2007. The Company intends to further its programs in other CNS diseases as well, both internally and with its licensing partners.

AngioChem is a privately owned Quebec-based biotechnology company dedicated to the development and commercialization of innovative drugs targeting the brain. The Company was founded in 2003 and funded originally by Valeo Management LP, a general partner of the University of Quebec in Montreal (UQAM) for the valorisation of the technologies discovered by its researchers. It started as a spin-off company from the Laboratory of Molecular Medicine of UQAM, directed by Dr. Richard Beliveau.AngioChem's R&D program involves the development of novel CNS therapeutics using physiological mechanisms to cross the blood-brain barrier and to penetrate the brain. AngioChem has demonstrated that its strategy can lead to the development of innovative, efficacious drugs with a favourable side-effect profile.

"The technologies developed by AngioChem will allow the design of new therapeutics that could cross the Blood Brain Barrier and target the brain. This will allow the development of new therapeutics having a higher efficacy for the treatment of Central Nervous System disorders" stated Dr. Richard Beliveau, scientific founder of AngioChem.

"We thank our original financial partners who supported the very significant progress made by AngioChem over the last two years. The continued strong support of BDC Venture Capital and the commitment of VIMAC Milestone Medica at this stage of the company's development is recognition of the tremendous potential of AngioChem's technology" stated Dr Robert Dugre, president and CEO of AngioChem.

AngioChem's vision is to become a leader in the field of central nervous system disorders following the development and commercialisation of innovative drugs targeting the brain.

Upon the close of the financing, Dr. Sena Biswas, Managing Director of VIMAC will join the AngioChem board of directors.

VIMAC Milestone Medica

VIMAC Milestone Medica Fund is an early stage life sciences fund co-sponsored by VIMAC Ventures LLC, RBC Technology Ventures, and BTG. The Boston-based fund is focused on companies along the East Coast of the U.S. and into Ontario and Quebec. Joining the co-sponsors are a number of institutional investors including The Solidarity Fund QFL, headquartered in Montreal, with more than C$5.2 billion in assets, and other leading Montreal institutions.As a result of the strong support of these LP's, VMM has a unique focus on the Quebec life sciences community. Please visit www.vimac.com.