AEterna Zentaris Sells Echelon Biosciences to Frontier Scientific

QUEBEC CITY, Dec. 3 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ;), a global biopharmaceutical company focused on endocrine therapy and oncology, today announced it has completed the sale of all issued and outstanding shares of its wholly-owned Salt Lake City, Utah-based subsidiary, Echelon Biosciences Inc., to Frontier Scientific Inc. The transaction represents $3.2 million, including $2.6 million upfront and payable immediately with a $0.6 million in contingent consideration.

David J. Mazzo, Ph.D., President and CEO of AEterna Zentaris Inc. stated, "We are very pleased to have finalized the transaction with Frontier Scientific for the sale of Echelon. It is our intention to divest our remaining non-core assets as they provide additional non-dilutive sources of funds that we will dedicate to advance our lead development programs, specifically our ongoing Phase 3 program with cetrorelix for the treatment of BPH."

Dr. Jerry Bommer, President of Frontier Scientific commented, "Frontier Scientific and Echelon Biosciences both have outstanding personnel and complementary markets, technologies, facilities, and operations. The acquisition will lead to new technology development and growth opportunities."

On October 2, 2007, the Company announced its intention to divest its non-core assets, including Echelon Biosciences.

About Echelon Biosciences Inc.

Echelon Biosciences Inc., a Salt Lake City based biotechnology company with 20 employees, is engaged in furthering the science of lipid cell signalling and critical metabolic enzymes, which provide new and viable targets for the development of potential drugs and diagnostics for cancer, diabetes, inflammation, infections, and cardiovascular disease. The focus is also on small molecule agonists and antagonists to lipid-protein signalling interactions which are new and important therapeutic targets. Furthermore, Echelon markets chemical reagents.

About Frontier Scientific, Inc.

Frontier Scientific Inc. (FSI) is a chemical developer, manufacturer and custom research services provider to the pharmaceutical, biotechnology, industrial chemical, government, and academic sectors. FSI specializes in the development of chemical compounds and processes related to porphyrins, phthalocyanines and boronic acids. FSI is a privately-held corporation established in 1975 and headquartered in Logan, Utah.

About AEterna Zentaris Inc.

AEterna Zentaris Inc. is global biopharmaceutical company focused on endocrine therapy and oncology, with proven expertise in drug discovery, development and commercialization. News releases and additional information are available at

Forward-Looking Statements

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