Press Releases

BioMS MEDICAL ANNOUNCES SECOND QUARTER 2005 RESULTS

Edmonton, Alberta, Aug 12, 2005 – BioMS Medical Corp (TSX: MS), a leading developer in the treatment of multiple sclerosis (MS), today announced results for the second quarter ended June 30, 2005.

“Patient enrollment continues as planned for our pivotal Phase II/III clinical trial evaluating MBP8298 for the treatment of secondary progressive multiple sclerosis,” said Mr. Kevin Giese, President of BioMS Medical. “During the quarter, we successfully expanded our trial into Europe, appointing Dr. Carolyn Young as lead investigator in the U.K. and enrolling the first U.K. patient subsequent to the end of the quarter. Our primary objectives for the coming months are to ensure enrolment momentum is maintained and to further expand our trial into additional jurisdictions in Europe.”

The consolidated net loss for the second quarter ended June 30, 2005 was $2.9 million or ($0.05) per share compared with a consolidated net loss of $2.1 million or ($0.04) per share for the second quarter of the previous year. For the first six months of 2005, the consolidated net loss was $5.3 million or ($0.09) per share compared with a consolidated net loss of $6.6 million or ($0.13) per share for the corresponding period in 2004.

Total consolidated expenses for the second quarter of 2005 were $3.3 million compared to $2.3 million for the second quarter of 2004. Total consolidated expenses for the first six months of 2005 were $5.8 million compared with $6.8 million for the same period in 2004.

Research and development expenditures totaled $1.8 million for the second quarter of 2005 compared to $1.0 million for the second quarter of 2004 and totaled $2.8 million for the first six months of 2005 compared to $4.4 million for the same period in 2004. General and administration expenditures totaled $1.1 million for the second quarter of 2005 compared to $0.9 million for the second quarter of 2004 and totaled $2.2 million for the first six months of 2005 compared to $1.7 million for the same period in 2004. The six month research and development expenses decreased due to completion of preparation work for the Company’s pivotal trial for MBP8298, offset by the subsequent initiation of this trial. General and administration costs increased as a result of a general increase in the overall activity of the Company.

Revenue consisted entirely of interest earned on funds invested and was $0.4 million for the second quarter of 2005 compared to $0.1 million for the second quarter of 2004. Revenue from interest totaled $0.5 million for the first six months of 2005 compared to $0.2 million for the same period in 2004.

As at June 30, 2005 the Company had cash and short-term investments totaling approximately $45.9 million as compared to $14.4 million at December 31, 2004. At June 30, 2005 the Company had working capital of $47 million as compared to $14 million at December 31, 2004. The current working capital is sufficient for the Corporation to meet its on going obligations.

Renewal of normal course issuer bid
BioMS Medical also announced it is renewing its normal course issuer bid. Under the bid, which will be conducted pursuant to the rules of the Toronto Stock Exchange ("TSX"), the Company may purchase up to 1,000,000 of its Class A common shares (the "Common Shares") representing approximately 1.6% of the Company's issued and outstanding Common Shares.

The bid will commence August 15, 2005 and will expire August 14, 2006 or such earlier date as the Company may complete its purchases. The price at which the Company will purchase its shares will be the market price thereof at the time of acquisition. Purchases of Common Shares will be made in the open market through the facilities of the TSX. Any Common Shares acquired by the Company will be cancelled. The Company has 63,124,866 Common Shares issued and outstanding as of August 12, 2005. During the previous 12 months, the Company acquired 369,100 of its Common Shares at an average price of $2.75 per share by way of a normal course issuer bid.

The Board of Directors of the Company believes that the market price of the Common Shares may not fully reflect the value of the Company's business and its future business prospects. As a result, the Board has concluded that the purchase and cancellation of the Common Shares may represent an appropriate and desirable use of the Company's funds and provide market stability.

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.