Press Release: Mistral Pharma Acquires CuraMedica

Mistral Pharma Acquires CuraMedica MONTREAL, QUEBEC -- May 7, 2007 -- Mistral Pharma announces today the acquisition of CuraMedica "Mistral is now an integrated pharmaceutical company" said Mr. Bertrand Bolduc, Mistral's President & CEO. "We now combine an exciting pipeline of branded controlled-release products and a soon to be approved product for the Canadian Market. We intend to use our pipeline of products for quid pro quo licensing deals in order to add new products to those coming from the CuraMedica acquisition" explained Mr. Bolduc. CuraMedica will be integrated into Mistral Pharma and its President, Mrs. Dalal Manoli, has become Mistral's Vice-President Sales & Marketing. CuraMedica is a privately-held Montreal company that owns the Canadian rights for pharmaceutical products in different therapeutic areas. CuraMedica's first product, Instillagel®, is an innovative product licensed from Farco Pharma of Germany. It is a sterile gel combining lidocaine and chlorhexidine, a local anesthetic and antiseptic for urology procedures. Instillagel® provides a safe and effective solution for patients to ease discomfort in urology procedures. It is expected to be approved by Health Canada in 2007. Details of the Transaction Mistral issued 9,950,750 common shares, at a price of $0.06 per share, i.e. 5.65 % of the common shares outstanding giving effect to the transaction. These shares are subject to a 4-month hold period from the date of their issuance. Of the aggregate of 9,950,750 common shares, 7,334,083 were issued at closing while 2,616,667 will be held in escrow until Instillagel® is approved by Health Canada. About Mistral Pharma Inc. Mistral Pharma is an innovative pharmaceutical product development and drug delivery company and its first two branded products, MIST-B01 & B02, showed positive results at their respective first pilot clinical trials. Mistral is also working on other control-delivery branded products. Mistral positions itself as a development partner for pharmaceutical companies. Additional information about Mistral Pharma can be obtained on Mistral Pharma's website at The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release. Contacts: Mistral Pharma Inc. Bertrand F. Bolduc, B.Pharm., MBA President & Chief Executive Officer 514-421-1717 x 2224 [email protected] Mistral Pharma Inc. Alain Provencher, CA, CF Vice-president, Finance & Chief Financial Officer 514-421-1717 x 2222 [email protected]