LIBRACOL AVAILABLE AT SOME 500 ADDITIONAL OUTLETS.

Magistral Biotech Inc. (TSX Venture: MBS) Montreal, has announced that Libracol(R) will be available at approximately 500 new sales outlets, including some 400 additional Loblaws stores, located mainly in Ontario, Quebec and the eastern provinces (Libracol is already sold at Loblaws stores in western Canada), approximately 65 drugstores belonging to the London chain, principally in British Columbia, and in about 19 SuperDrug chain outlets, located mainly in the Calgary area. This means that Libracol(R) will soon be sold in over 4,000 retail outlets coast to coast.

Magistral confirms that the clinical study on the effectiveness of Libracol(R) announced earlier, designed to validate the efficacy of Libracol(R) with a view to obtaining marketing approval from the regulatory authorities in Canada and in the USA, and to improve product advertising, has begun and will be carried out in collaboration with JSS Medical Research, a well-known firm with an established nation-wide clinical research site network, and the required capability to provide Magistral with all necessary help in achieving the objectives of this clinical study.

Magistral will also shortly be initiating a pre-clinical study with a view to optimizing the protocol for a second clinical study, which should be starting in January 2005. This second clinical study will be looking to demonstrate the efficacy of concomitant administration of Libracol(R) and Lipitor(R) ((x)), the top selling statin drug in Canada. The addition of Libracol(R) to this statin treatment should enhance the efficacy of the treatment without increasing the risk of side effects.

Magistral also wishes to announce that its board of directors has issued to Pierre-Andre Ouimet, the chair of its board of directors, 200,000 options, entitling him to acquire 200,000 common shares at a price of $0.35 per share, within the framework of an overall compensation package in appreciation of his direct involvement in the management of the company in his capacity as executive chairman of the board of directors. One half of these options may be exercised immediately and the other half may be exercised as of December 31, 2005, subject to certain conditions, for a period of five (5) years from the time of issuance, and subject to the provisions of Magistral's stock option plan and the policies of the TSX Venture Exchange.

Finally, Magistral wishes to announce that Jean-Jacques Caron, vice president, Investments with Societe Innovatech du Sud du Quebec, has replaced Claude Michaud as the representative of Societe Innovatech du Sud du Quebec on the Magistral Board of Directors.

Magistral Biotech profile

Magistral Biotech Inc., a Canadian company, develops and markets scientifically designed natural health products that address significant medical conditions such as high blood cholesterol, hair loss and prostate problems. Magistral Biotech Inc. works in partnership with researchers at the Universite de Sherbrooke to provide consumers with natural products that are safe and effective. Magistral Biotech Inc. shares trade on the TSX Venture Exchange under the symbol MBS.

For more information, call 450/979-7878 or visit http://www.magistralbiotech.com.