Press Releases

BioMS Medical Announces First Quarter 2006 Results

Edmonton, Alberta, May 15, 2006 – BioMS Medical Corp (TSX: MS), a leading developer of a treatment for multiple sclerosis (MS), today announced results for the first quarter ended March 31, 2006.

The consolidated net loss for the first quarter ended March 31, 2006 was $8.6 million or ($0.14) per share compared to a consolidated net loss of $2.4 million or ($0.05) per share for the first quarter of the previous year.

“The increased net loss for the period reflects the planned expansion of our clinical trial program for MBP8298, our lead drug for MS” said Kevin Giese , President of BioMS Medical. “During the first quarter, we incurred upfront costs as we prepared for the expansion of our existing pivotal secondary progressive MS (SPMS) trial into continental Europe and for the anticipated launch of a pivotal SPMS trial in the U.S. We have also incurred upfront costs for the planned launch of a relapsing-remitting MS (RRMS) trial later this year. After adjusting for these costs and for non-cash expenses related to the granting of stock options, the net loss for the quarter was less than $6.0 million.”

Total consolidated expenses for the first quarter of 2006 were $9.0 million compared to $2.5 million for the first quarter of 2005. Research and development expenses totaled $6.5 million for the first quarter of 2006 compared to $1.1 million for the first quarter of 2005. Research and development expenses increased as a result of the increased number of clinical trial sites participating in the pivotal phase II/III clinical trial for MBP8298, the increased number of patients entering the trial and added costs associated with the change in the contract research organization managing the pivotal trial. The Company also incurred expenses of $2.4 million in preparing for the anticipated start of the SPMS trial in the U.S. and a RRMS trial later this year, including the expenditure of approximately $1.9 million towards the purchase of MBP8298 product for use in clinical trials over the course of the next few years.

General and administration expenses totalled $1.1 million for the first quarter of 2006 compared to $1.0 million for the first quarter of 2005. During the first quarter of 2006, the Company granted and vested 1,050,000 stock options and, as a result, recorded $1.0 million in non-cash stock-based compensation expense compared to $0.1 million in the first quarter of 2005.

As at March 31, 2006, cash and short-term investments totaled $32.0 million as compared to $38.0 million at December 31, 2005. At March 31, 2006, the Company had working capital of $29.8 million as compared to $37.2 million at December 31, 2005. Management estimates that the current working capital is sufficient for the Corporation to meet its on-going obligations in respect of the existing clinical trial through to the second half of 2007.

This press release may contain forward-looking statements, which reflect the Corporation’s current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Corporation’s ongoing quarterly and annual reporting. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that dirucotide (MBP8298) will continue to demonstrate a satisfactory safety profile in ongoing and future clinical trials; and that BioMS Medical Corp. will complete the respective clinical trials within the timelines communicated in this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.