Mr. Philip Theodore reports

AETERNA ZENTARIS ANNOUNCES CLOSING OF US$7,560,000 REGISTERED DIRECT OFFERING OF COMMON SHARES AND WARRANTS

Aeterna Zentaris Inc. has closed its previously announced registered direct offering to a single health-care-dedicated institutional investor in the United States of 2.1 million units, consisting of either one common share or one prefinanced warrant to acquire one common share and 0.45 of a warrant to purchase one common share, at a purchase price of $3.60 (U.S.) per unit. The purchaser acquired units with prefinanced warrants substituted for common shares, where the purchase of units with common shares would have resulted in the purchaser beneficially owning more than its beneficial ownership limitation following the consummation of the offering.

The warrants have an exercise price of $4.70 (U.S.) per share. They are exercisable six months after their date of issuance and expire three years after their initial exercise date. The warrants do not contain any price or other adjustment provision, except for customary adjustment provisions that apply in the event of certain corporate events or transactions that affect all outstanding common shares. The warrants may at any time be exercised on a net or cashless basis in accordance with a customary formula. In addition, in the event the volume-weighted average price of the company's common shares on the Nasdaq Capital Market attains or exceeds $10.00 (U.S.) during 10 consecutive trading days, the company will have the right to call for cancellation all or any portion of the warrants which are not exercised by holders within 10 trading days following receipt of a call notice from the company. The warrants will not be listed on any stock exchange.

The company intends to use the net proceeds from the offering to finance the preparation and submission of new drug applications for Macrilen and Zoptrex, if the results of its continuing clinical trials of such products warrant doing so; for general corporate and working capital purposes; and to finance negative cash flow.

Maxim Group LLC acted as exclusive placement agent for the offering. Rodman & Renshaw, a unit of H.C. Wainwright & Co. LLC, and Aegis Capital Corp. acted as financial advisers to the company in connection with the offering.

In approving the offering and listing the common shares issued and issuable thereunder, the company relied on the exemption set forth in Section 602.1 of the Toronto Stock Exchange company manual available to eligible interlisted issuers, since the company's common shares are also listed on the Nasdaq Capital Market and had less than 25 per cent of the overall trading volume of its listed securities occurring on all Canadian marketplaces in the 12 months immediately preceding the date on which application was made to TSX to approve the offering.