ConjuChem Biotechnologies completes non-dilutive capital transaction

ConjuChem Biotechnologies Inc. ("ConjuChem") (TSX:CJB) today announced the completion of the transaction providing $5 million in new, non-dilutive capital to the Company. The Superior Court of Québec has approved the previously announced plan of arrangement (the "Arrangement") under section 192 of the Canada Business Corporations Act (the "CBCA") involving ConjuChem and Colabor Income Fund ("Colabor"), among others, all as fully described in ConjuChem's management information circular dated July 17, 2009.

"This non-dilutive transaction strengthens our balance sheet and provides us with greater flexibility to execute our business plan," said Mark Perrin, President and CEO. "Our primary focus remains progressing our partnership discussions for our lead diabetes drug, PC-DAC(TM):Exendin-4 and our preclinical compound, PC-DAC(TM):Insulin."

As part of the transaction, ConjuChem will carry on its business operations as they existed immediately prior to the Arrangement in a new entity, named "ConjuChem Biotechnologies Inc.", owned by the former shareholders of ConjuChem, but with the additional cash received from Colabor. The common shares of the new entity are listed on the Toronto Stock Exchange under the same stock symbol "CJB" as of today.

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CONJUCHEM BIOTECHNOLOGIES INC

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