QUEBEC CITY, QUEBEC--(Marketwire - June 25, 2008) - Medicago Inc. (TSX VENTURE:MDG) today announced additional positive results for the Company's H5N1 Avian Influenza VLP vaccine from a preclinical immunogenicity study performed in ferrets, the most predictive animal model for evaluating the effectiveness of influenza vaccines in humans. The Company's H5N1 VLP vaccine induced high levels of antibodies that neutralized strains of H5N1 circulating virus beyond the strain used to develop the original vaccine. Cross-reactivity was demonstrated against three of the deadliest strains of H5N1: the Turkey strain (clade 2.2), the Anhui strain (clade 2.3) and the Vietnam strain (clade 1).

"These data further highlight the competitive advantages of our proprietary avian flu vaccine. Not only have we been able to demonstrate the efficacy of our vaccine at very low doses, we have now demonstrated that our vaccine offers broad protection against a variety of strains of this deadly virus," said Andy Sheldon, President and CEO of Medicago. "These unique properties, combined with the speed of our vaccine production platform, should prove highly attractive to governments and institutions seeking to develop vaccine stockpiles and pandemic planning in the most efficient and effective manner possible."

The objective of Medicago's study was to determine the optimal dosage for its H5N1 VLP vaccine in ferrets. At the start of the study, ferrets were vaccinated with a range of doses of the Company's VLP vaccine made from an Indonesian strain of H5N1 Avian Influenza. A booster immunization was administered after three weeks. The results demonstrated that ferrets vaccinated with the 5 micrograms dose met all CHMP (European Union Committee for Medicinal Products for Human Use) criteria for other H5N1 strains after the second dose with 100% of the ferrets having an hemagglutination inhibition (HAI) titer greater than 1:40 for the Turkey strain, and 80%, for the Anhui and Vietnam strains. These criteria set by the CHMP for the approval of seasonal flu vaccines in the European Union are widely used to assess immune responses of new pandemic influenza vaccines in humans. In the case of ferrets, these criteria are useful to predict effective doses that should be tested in humans.