Hemosol to Produce Iron-Binding Drugs for Use in U.S. Clinical Studies

April 5, 2005

Hemosol has negotiated an agreement with Biomedical Frontiers (BMF), a private biopharmaceutical company located in Minneapolis, under which Hemosol will produce two separate iron-binding drugs (40SD02 and 25SD04).

These injectable drug formulations will be used for preclinical and clinical studies for treatment of iron poisoning, iron overload and diabetic complications. Production is scheduled to begin in the second quarter of 2005. Revenue from the agreement governing the BMF relationship is expected to contribute to modestly reducing Hemosol's burn rate in 2005.