Press Releases

BioMS Medical Announces Third Quarter 2004 Financial Results

Edmonton, Alberta, November 12, 2004 - BioMS Medical Corp (TSX: MS), a leading developer in the treatment of multiple sclerosis (MS), today announced financial and operational results for the third quarter, ended September 30, 2004.

“We continue to build towards the initiation of our pivotal trial of MBP8298 for Secondary Progressive MS,” said Kevin Giese, President and CEO of BioMS Medical. “Our lead investigator has been selected and we have strengthened our clinical team considerably in preparation for this important trial.”

In July, BioMS appointed Leopold Arfors, M.D., Ph.D., to the new position of Medical Director. Dr. Arfors has designed and completed numerous clinical trials, in particular for multiple sclerosis products. Subsequent to the end of the quarter, the Company announced the appointment of Dr. Tony Verco to the new position of Vice President of Clinical and Medical Affairs. Dr. Verco has extensive experience in all phases of clinical trials.

The Company's consolidated net loss for the three months ended September 30, 2004 was $2.4 million or ($0.05) per share compared to a consolidated net loss of $1.6 million or ($0.03) per share for the three months ended September 30, 2003. The increase resulted from: lower interest income of $74,000; higher general and administrative expenses of $420,000 and higher research and development expenses of $265,000. For the nine months ended September 30, 2004, the consolidated net loss was $9.0 million or ($0.18) per share compared to $4.9 million or ($0.10) per share for the corresponding period in 2003.

Total consolidated expenses for the three months ended September 30, 2004 were $2.5 million compared to $1.8 million for the same period in 2003. For the nine months ended September 30, 2004, consolidated expenses were $9.3 million compared to $5.5 million for the same period in 2003.

Research and development expenditures for the three months ended September 30, 2004 totaled $1.1 million compared with $0.8 million for the same period in 2003. Research and development expenditures for the nine months ended September 30, 2004 totaled $5.4 million compared to $2.3 million in 2003.

General and administration expenditures increased to $1.1 million for the three months ended September 30, 2004 compared to $0.6 million for the three months ended September 30, 2003. The increases were the result of a general increase in business activity by the Company.

As at September 30, 2004 cash and short-term investments totaled $17 million as compared to $19 million at December 31, 2003. At September 30, 2004, the Company had working capital of $17 million, unchanged from $17 million at December 31, 2003. The current working capital is sufficient for the Company to meet its on going obligations.

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.