Medicago's Avian flu pandemic vaccine achieves 100% protection in a lethal challenge study in ferrets

    - Company successfully completes final preclinical studies with pandemic
    flu vaccine -

    QUEBEC CITY, July 16 /CNW/ - Medicago Inc. (TSX-V: MDG) a biotechnology
company focused on developing highly effective and affordable vaccines based
on proprietary manufacturing technologies and Virus-Like Particles (VLPs),
today announced that it has reached an important milestone in the development
of its pandemic influenza vaccines with the successful completion of
preclinical studies for its H5N1 Avian Influenza VLP vaccine. In the final
preclinical study performed in ferrets, the Company demonstrated that at very
low doses, its pandemic vaccine formulated for the H5N1 Indonesia strain of
Avian flu provided 100% protection against a lethal challenge with the highly
virulent Vietnam Influenza virus. Current approved pandemic flu vaccines only
provide protection against the viral strain they were formulated for. The
Company also completed a safety study in rats which showed the vaccine was
well-tolerated and did not produce significant side effects. These findings
will enable Medicago to complete its planned Clinical Trial Application
("CTA") to support initiation of a Phase I clinical trial targeted to begin
this quarter.
    The objective of Medicago's ferret study was to determine the protective
efficacy and optimal dosage of its H5N1 VLP vaccine. The ferret is the most
relevant and recognized animal model for evaluating the effectiveness of
influenza vaccines in humans because ferrets exhibit similar clinical symptoms
as humans. At the start of the study, ferrets were vaccinated with a range of
doses of the Company's clinical grade VLP vaccine made for the Indonesian
strain of H5N1 Avian Influenza. Animals were then challenged with a lethal
dose of the Vietnam influenza virus (A/Vietnam/1194/04). The results
demonstrated that ferrets vaccinated with doses of 1.8 and 3.7 micrograms were
fully protected when exposed to this lethal virus, while non-vaccinated
animals did not survive.
    "We are extremely proud of these results as it is a solid demonstration
of the capacity of our vaccine to protect against different strains of avian
flu and potentially against new emerging strains of H5N1," said Andy Sheldon,
President and CEO of Medicago. "A low dose cross-protective vaccine is highly
desirable in face of pandemic as strains may mutate rendering current
stockpiled vaccines ineffective. With these robust ferret challenge results
and the recently completed safety work in rats, we are now able to advance our
product into clinical trials this quarter."

    About Medicago

    Medicago is committed to provide highly effective and affordable vaccines
based on proprietary Virus-Like Particle (VLP) and manufacturing technologies.
Medicago is developing VLP vaccines to protect against H5N1 pandemic
influenza, using a transient expression system which produces recombinant
vaccine antigens in non-transgenic plants. This technology has potential to
offer advantages of speed and cost over competitive technologies. It could
deliver a vaccine for testing in about a month after the identification and
reception of genetic sequences from a pandemic strain. This production time
frame has the potential to allow vaccination of the population before the
first wave of a pandemic strikes and to supply large volumes of vaccine
antigens to the world market. Additional information about Medicago is
available at www.medicago.com.

    Forward Looking Statements

    This press release contains forward-looking statements which reflect
Medicago's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. Medicago disclaims any obligation to
update these forward-looking statements.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release

    %SEDAR: 00023641EF

For further information: Medicago, Inc., Andy Sheldon, President and
CEO,  (418) 658-9393; Medicago Inc., Arianna Vanin, Director, Investor
Relations, (514) 796-3993