PRESS RELEASE

For immediate diffusion

Fonds Bio-Innovation and MSBi Capital invest in Milestone Pharmaceuticals

Montreal, August 7, 2007 - Fonds Bio-Innovation and MSBi Capital, two venture capital funds that specialize in the financing of biotechnology start-ups, have participated in a C$2.75M (US$2.6M) financing round that  Milestone Pharmaceuticals Inc. ("Milestone") has just closed.

Milestone develops new therapeutic products to treat inflammatory and cardiovascular conditions. Based at the Biotechnology Research Institute (BRI-NRC) in Montreal, Milestone was founded in 2003 by Philippe Douville and Philippe Lamarre, two experienced biopharmaceutical entrepreneurs, and by MSBi Capital. The company constituted at its inception a special panel of pharmacologists and medicinal chemists that proposes development programs for new chemical entities (NCEs), stemming from known molecule classes and using clinically-validated mechanisms of action. The NCEs are then tested on established models, reducing both risk and development time during the pre-clinical, regulatory and clinical phases.

Milestone's first program revolves around the development of a topical non-steroidal anti-inflammatory drug (NSAID) with disease modifying anti-rheumatic drug (DMARD) properties for conditions such as psoriasis, rheumatoid arthritis and osteoarthritis. A need for new anti-inflammatory drugs has emerged following the withdrawal of products such as Vioxx® (Merck) and Bextra® (Pfizer). Prior to withdrawal, these drugs generated several billion dollars in sales world-wide.

A second program will target the development of new inhibitors from a well-known class of cardiovascular drugs, which will allow for the treatment of angina and cardiac arrhythmias.

"Fonds Bio-Innovation is very pleased to work with Milestone as it traverses this development phase. In light of its great commercial potential, this life sciences company aligns with Fonds Bio-Innovation's investment strategy", said Mr. Jean-Maurice Plourde, CEO of Gestion Bio-Innovation inc. and of CQVB.

"Milestone offers a unique business model for investors and we are enthusiastic about providing continued financial and business support to the company, notably in light of the rapid progress demonstrated to date in its drug development programs", said Dr. Cédric Bisson, Partner in charge of Life Sciences at MSBi Capital. "Milestone is highly gratified at MSBi and Fonds Bio-Innovation's involvement, which  will allow the company to accelerate its development programs for cardiovascular and anti-inflammatory agents" concluded Dr. Philippe Douville, Chief Executive Officer of Milestone Pharmaceuticals Inc.

About Milestone Pharmaceuticals Inc.

Milestone Pharmaceuticals Inc. ("Milestone") is a specialty pharmaceuticals company pursuing reduced-risk programs aimed at developing small molecules as therapeutic agents for human diseases. Milestone's two initial products target inflammatory and cardiovascular conditions. Milestone's goal is to develop these products into early clinical trials before establishing partnerships or licensing its products to major pharmaceutical companies. (www.milestonepharma.com)

About Fonds Bio-Innovation s.e.c.

Fonds Bio-Innovation is a limited partnership whose general partner is Gestion Bio-Innovation Inc., a CQVB subsidiary. Its special partners are Solidarity Fund QFL and CQVB. Fonds Bio-Innovation s.e.c. offers financing to biotechnology start-ups in Québec for business structuring, proof of concept, prototype development, intellectual property protection, identification of competitive advantage, market niches and marketing strategy.

(www.fondsbio-innovation.com)

About MSBi Capital

MSBi Capital manages seed and early-stage venture capital funds and helps entrepreneurs and innovators build successful companies in the sectors of information technology, life sciences and cleantech. MSBi Capital's value-added approach to early-stage investing provides portfolio companies with capital, unique access to intellectual property from its partner academic institutions and an extensive network of industry partners, advisors and sector- specific co-investors. MSBi's first fund (MSBi LP), from which this investment is being made,  is a $46-million seed and early-stage venture capital fund focused on commercializing innovations,  predominantly based on innovative technologies originating from universities of McGill, Sherbrooke and Bishop's, as well as their affiliated hospitals and research institutes.

(www.msbi.ca )

- 30 -

For information:

Kate Falardeau

Director, Communications & Marketing

CQVB

418-657-3855, extension 212

kate.falardeau@cqvb.qc.ca

Editorial Contact:

Zara Myles, MSBi Capital

514-982-9044, zmyles@msbi.ca