Mr. Andy Sheldon reports

MEDICAGO ANNOUNCES STOCK OPTIONS GRANT TO DIRECTORS AND EMPLOYEES

Medicago Inc., pursuant to terms and conditions of its stock option plan, has granted 180,000 stock options to employees and directors. Employees were granted a total of 30,000 options and directors were granted a total of 150,000 options. The stock options were issued at an exercise price of 66 cents and expire in five years.