LAB INTERNATIONAL ENTERS INTO SALE AND LEASEBACK TRANSACTION -- TOTAL PROCEEDS OF $7.8 MILLION

LAB International Inc. (TSX: LAB, Frankfurt: LD9.F, XETRA: LD9.DE) ("LAB"), an integrated drug development company with subsidiaries focused on developing therapies for the inhalation market and on providing contract research services, today announced that it has entered into a sale and leaseback transaction with Woodcliffe Corporation. The transaction involved the Canadian LAB Research facility located in Laval, Quebec for total proceeds of $7.8 million. The closing is scheduled to take place at the end of October 2005.

PR Newswire (http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-13-2005/0004167467&EDATE=)