QUEBEC CITY, QUEBEC--(Marketwire - July 3, 2008) - Medicago Inc. (TSX VENTURE:MDG) today announced it has been awarded a non-refundable contribution of up to $279,700 from Canada's National Research Council Industrial Research Assistance Program ("NRC-IRAP") to support the development of the Company's seasonal influenza Virus-Like Particles (VLP) vaccine program. Medicago is developing a seasonal vaccine based on its proprietary VLP manufacturing technology, which has the potential to offer speed and cost advantages over competitive technologies.

"This contribution is a continuation of our ongoing relationship since 2001 with Canada's National Research Council" said Andy Sheldon, President and CEO of Medicago. "The development of a seasonal influenza vaccine candidate is in-line with our strategy to expand our product portfolio and continue to leverage our technology platform to deliver highly effective and affordable vaccines. We would like to thank NRC for their continued guidance and contributions