November 14, 2006 at 17:31 PM EST
ProMetic Reports on Business Highlights and on Financial Results for its Third Quarter 2006
- European Regulatory Approval - CE Mark for the Prion Capture Device

ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic") today announced new corporate developments from its business units and its third quarter results ended September 30, 2006.

ProMetic foresees two of its business units reaching a cash neutral position in 2007 with anticipated revenues to exceed $15 Million in 2007. The basis for this is the commercial launch of the prion capture device by MacoPharma, the series of agreements that were recently announced, as well as the forthcoming licensing agreements for the plasma proteins. "Our proprietary technology delivered 2 successful business units with near term profitability and significant revenue growth" said Pierre Laurin Chairman and CEO of ProMetic, who added: "It is understandable that investors have been disappointed with the shortfall of revenue caused by the delay in the launch of our prion capture filter, and the insolvency of Hemosol. However, our business model is finally poised to deliver to shareholders the long awaited combination of revenue growth from proven products and the value driver from our promising therapeutic products."

ProMetic BioSciences Ltd (PBL)

Pathogen Removal and Diagnostic Technologies Inc. ("PRDT"), a joint venture between ProMetic and the American Red Cross, along with their commercial and manufacturing partner, MacoPharma SA ("MacoPharma"), announced in September that their prion capture filter, P-Capt®, received European Regulatory Approval (CE mark). The commercial launch of P-Capt® will follow in coming months.

A long term manufacturing agreement was signed between PBL and MacoPharma whereby PBL will provide to MacoPharma the resin / membranes that will be incorporated by MacoPharma into the P-Capt® device. PBL will therefore receive two different revenue sources from the sales of P-Capt® by MacoPharma: one from the supply and manufacturing agreement and one from its share of the royalty paid to PRDT.

Under a collaboration agreement announced January 5th 2005, PBL will provide Octapharma AG with scale-up quantities of a Mimetic Ligand" affinity adsorbent. Having demonstrated that the new Mimetic LigandTM adsorbent achieved the purification performance requirements for Octapharma's new recombinant protein product, the project is now entering the final scale-up phase of the CAD $1.4 million programme. This will involve the production of multiple batches of adsorbent.

A collaborative agreement with Pfizer Inc. was also signed to investigate new approaches to the purification of biological products. Under the terms of the agreement, PBL will investigate the application of PBL's affinity technology to the capture and purification of biomolecules of interest to Pfizer. The work is to be conducted jointly at PBL's and Pfizer's R&D centers. This latest agreement is recognition of PBL's growing prominence in the field of downstream process development.

In addition, PBL concluded manufacturing and supply agreements for two synthetic-ligand affinity adsorbent products with Novozymes Delta Ltd for the manufacture of Recombumin®. The agreements provide commercial terms for the supply of process-scale quantities of both products for an initial 10-year term.

ProMetic BioTherapeutics, Inc. (PBT)

During the third quarter, PBT announced the signature of a license agreement and associated services and supply agreements with Nabi Biopharmaceuticals (NASDAQ: NABI) for the use of their Mimetic Ligands" technology in the manufacturing of selected plasma-derived hyperimmune products

The milestone payments could reach US $18 million if Nabi Biopharmaceuticals develops and obtains licensure of all the products that are the subject of the license agreement.

"In addition to implementing on the NABI agreement, we expect to close other strategic commercial agreements in Europe and in Asia", stated Chris Bryant, COO of PBT. "These agreements will further consolidate our revenue base and validate the value of our proprietary process to recover plasma proteins."

ProMetic BioSciences Inc. - Therapeutics

The PBI-1402 phase II clinical trial in patients with anemia induced by chemotherapy has been expanded to multiple sites in Canada and in Europe. ProMetic has received regulatory approval from Health Canada to proceed with a modified clinical trial designed to facilitate patient recruitment for the expanded Canadian trial.

Recent pre-clinical experiments have now confirmed the potential use of PBI-1402 in anemic patient with chronic kidney disease. In view of these results, a clinical trial application is in preparation for submission to Health Canada.

PROMETIC LIFE SCIENCES INC. FILES A $42 MILLION SHELF PROSPECTUS

On November 3, 2006, in order to improve its ability for growth, the Company filed and obtained receipt from the Autorite des Marche financiers (AMF), acting as principal regulator, for a CND $42 million short form base shelf prospectus or "shelf registration" with the securities regulators in each Canadian province.

The shelf registration provides the Company with flexibility to issue its subordinate voting shares in one or more tranches periodically to the public in Canada, during the 25-month period in which the shelf prospectus remains valid. The securities may be issued at the Corporation's discretion, with an aggregate offering amount not to exceed CND $42 million in value. There are no immediate plans to offer securities under this prospectus and in the event that the Company offers securities under the base shelf prospectus, the Company will prepare and distribute a Prospectus Supplement that will include the specific terms of the designated securities. The terms of such future offerings, if any, would be established at the time of such offering, and unless otherwise specified in a Prospectus Supplement, the net proceeds of the offerings will be used by the Company as working capital and for general corporate purposes.

Copies of the base shelf prospectus may be obtained by accessing the Company's SEDAR file at www.sedar.com or by contacting the Company's Communications Manager at the coordinates below.

The information contained in this news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province or jurisdiction.

FINANCIAL RESULTS FOR Q3-2006

(All amounts are in Canadian dollars unless indicated otherwise.)

Revenues for the third quarter of 2006 were $0.4 million compared with $0.5 million in the same period last year.

For the first nine months of 2006, revenues were $1.5 million compared to $6.8 million for the same period last year. Lower revenues are mainly attributable to the fact that whilst in 2005, there was revenue recognition of Hemosol's milestone payment of $4.3 million, no such milestone payment was due by Hemosol in 2006. In October 2006, the Company concluded long-term manufacture and supply agreements for two synthetic-ligand affinity adsorbent products with Novozymes Delta Ltd for the manufacture of Recombumin®. The agreements provide commercial terms for the supply of process-scale quantities of two synthetic-ligand affinity adsorbent products for an initial 10-year term. Also in the third quarter, the Company signed a strategic license agreement and associated services with Nabi Biopharmaceutical Inc. Both contracts are expected to provide additional revenues in the coming quarters.

Research and development expenses were $4.5 million for the third quarter compared to $3.1 million incurred in the same period in 2005. This significant variance is caused mainly by the creation of the BioTherapeutics unit which incurred $0.9 million in the quarter. Also, during the third quarter of 2005 the Company recorded a research and development tax credit of $0.5 million compared to $0.2 million this year.

Year to date, research and development expenses for 2006 amounted to $10.8 million. Research and development expenses consisted primarily of bio-separation activities including the development of the prions capture filter, advancement of PBI-1402 and PBI-1393 clinical and pre-clinical development, and plasma fractionation activities. In September 2006, Pathogen Removal and Diagnostic Technologies Inc, a joint venture between ProMetic and the American Red Cross, and MacoPharma received the European Regulatory Approval (CE Mark) for the prion capture filter, P-Capt®. Also, the Company decided to expand sites for its PBI-1402 clinical trial Phase Ib/II and to initiate its PBI-1393 clinical trial.

Administration, marketing and other expenses, excluding amortization, were $5.6 million for the first nine months of 2006 compared to $5.0 million for the same period in 2005. For the quarter, administration, marketing and other expenses were $2.3 million compared to $1.5 million for the same period last year. A significant portion of the increase in administration expenses is attributable to legal fees related to litigation between the Company and Hemosol concerning the outlicensing of hyperimmunes products extracted from plasma, using ProMetic's technology. That litigation was resolved in favor of ProMetic, as the Court decided that the Company could license its technology for the production of hyperimmune products, without Hemosol's consent.

Operating loss for the nine months of 2006 totals $16.3 million compare to $11.0 million for the same period in 2005 and is mainly caused by lower revenues.

Net interest expenses in 2006 were significantly higher at $4.0 million with $0.3 million for the same period in 2005. The increase is mainly attributable to interest expense accruals related to the convertible term notes issued by the Company at the end of 2005 and at the beginning of 2006. During the quarter the Company incurred a first payment to the note holders resulting in a disbursement of $0.4 million including interest. For the first nine months, interest expenses were capitalized to the outstanding debt for a total of $3.4 million to adjust the carrying value to the principal amount.

Net loss for the quarter was $7.0 million, or $0.04 per share, compared with $5.6 million, or $0.04 per share, for the same period in 2005. Year to date losses has increased by $5.4 million for a total of $20.5 million compared to the same period in 2005.

Cash and cash equivalents were $6.1 million as at September 30, 2006.

Cash flows used in operating activities totaled $3.3 million for the third quarter of 2006, compared with $3.6 million for the same period in 2005. Year to date and up to September 30, 2006 operating cash outflows were $13.2 million compared with $11.6 million for the same period in 2005. The variance is mainly due to lower revenues.

Cash flows provided by financing activities totaled $10.6 million for the first nine months of 2006 as a private placement was completed in June 2006.

Cash flows used in investing activities amounted to $1.8 million for the first nine months of 2006 and mostly resulted in the acquisition of the remaining Plasma Protein Purification System (PPPS) license from the American Red Cross.

On November 3, 2006, in order to improve its ability for growth, the Company filed and obtained receipt from the Autorite des Marche financiers (AMF), acting as principal regulator, for a CND $42 million short form base shelf prospectus or "shelf registration" with the securities regulators in each Canadian province. Pursuant to the shelf registration the Company may issue its subordinate voting shares in one or more tranches periodically to the public in Canada, during the 25-month period in which the shelf prospectus remains valid. The securities may be issued at the Corporation's discretion, with an aggregate offering amount not to exceed CND $42 million in value.

As at September 30, 2006, the Company had 159,874,539 subordinate voting shares outstanding (116,501,784 at December 31, 2005) and 3,526,450 options granted under the employee stock option plan (2,997,375 at December 31, 2005). A total of 23,583,486 warrants were outstanding (22,294,092 as at December 31, 2005).


PROMETIC LIFE SCIENCES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
(Unaudited)
                                              September 30  December 31
                                                      2006         2005
------------------------------------------------------------------------
------------------------------------------------------------------------
ASSETS
Current assets
 Cash and cash equivalents                          $6,082      $10,525
 Accounts receivable                                 1,503        2,914
 Inventories                                         2,345        1,935
 Prepaid expenses                                      498          518
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                    10,428       15,892

Investments                                          2,615        2,876
Capital assets                                       4,727        5,324
Licenses and patents                                 5,892        5,098
Deferred financing expenses                            343          563
Deferred development costs                               -           43
------------------------------------------------------------------------
                                                   $24,006      $29,796
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES
Current liabilities
 Bank loan                                               -       $1,029
 Accounts payable and accrued liabilities            4,966        5,319
 Provision related to a lawsuit                      3,041            -
 Current portion of long-term debt                      91          366
 Current portion of liability component of
  the convertible term notes                         4,193          524
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                    12,291        7,238

Liability component of the convertible term
 notes                                               3,377        3,490
Long-term debt                                          17           46
Provision related to a lawsuit                           -        2,921
Preferred shares, retractable at the holder's
 option                                              3,257        2,248
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                    18,942       15,943

SHAREHOLDERS' EQUITY
Share capital                                      161,664      150,697
Contributed surplus                                  6,861        5,929
Deficit                                           (163,461)    (142,773)
------------------------------------------------------------------------
                                                     5,064       13,853
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                   $24,006      $29,796
------------------------------------------------------------------------
------------------------------------------------------------------------



PROMETIC LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of Canadian
 dollars except for per share amounts)
(Unaudited)
----------------------------------------------------------------------
                                    Quarter ended    Nine month ended
                                     September 30        September 30
                                    2006     2005      2006      2005
----------------------------------------------------------------------
Revenues
Sales and contract                  $421     $487    $1,501    $2,836
Licensing                              -        -        41     3,999
----------------------------------------------------------------------
                                     421      487     1,542     6,835

Charges
Research and development
 expenses                          4,538    3,097    10,757    10,819
Administration, marketing and
 other expenses                    2,320    1,526     5,576     4,987
Amortization of capital assets       259      278       773       822
Amortization of license and
 patents and deferred
 development costs                   277      392       778     1,177
----------------------------------------------------------------------
                                   7,394    5,293    17,884    17,805

Loss before the following items   (6,973)  (4,806)  (16,342)  (10,970)
Provision related to a lawsuit       (41)       -      (119)        -
Write-down of short-term investment    -     (568)        -    (3,810)
Net interest expenses                (33)    (253)   (4,049)     (318)
----------------------------------------------------------------------
Net loss                         ($7,047) ($5,627) ($20,511) ($15,098)
----------------------------------------------------------------------
----------------------------------------------------------------------
Net loss per share (basic and
 diluted)                          (0.04)   (0.04)    (0.14)    (0.14)
----------------------------------------------------------------------
----------------------------------------------------------------------
Weighted average number of
 outstanding shares (in
 thousands)                      159,817  129,528   142,462   111,063
----------------------------------------------------------------------
----------------------------------------------------------------------

About ProMetic Life Sciences

ProMetic Life Sciences Inc. is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic LigandTM enabling technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of inflammation and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D and manufacturing facilities in the UK and business development activities in the US, Europe, Asia and MENA countries (Middle East and North Africa).

Additional information is available on the Company's website at www.prometic.com.

Forward Looking Statements

This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, the Company's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of the Company to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 17 of the Company's Annual Information Form for the year ended December 31, 2005, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.


Contacts:
ProMetic Life Sciences Inc.
Pierre Laurin
President and Chief Executive Officer
514-341-2115
p.laurin@prometic.com

ProMetic Life Sciences Inc.
Anne Hodgkinson
Communications Manager
514-341-2115 ext.2234
a.hodgkinson@prometic.com

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