Mr. Roberto Bellini reports

BELLUS HEALTH COMPLETES RESTRUCTURING INITIATIVES WITH REPATRIATION OF INTELLECTUAL PROPERTY TO CANADA

Bellus Health Inc. has completed its restructuring and strategic initiatives to extend the company's financial resources and reduce its fixed-cost base. The previously announced reorganization process whereby the company streamlined its international structure by liquidating its subsidiaries in Europe and the United States has been completed today. The reorganization resulted in the repatriation of Bellus Health's intellectual property to Canada and the reduction of the company's operating expenses (burn rate) by approximately $1.4-million per year.

"With the completion of the reorganization, we have now fully deployed our restructuring and strategic initiatives to extend the company's financial resources and reduce its fixed-cost base," said Roberto Bellini, president and chief executive officer of Bellus Health. "Together, the initiatives implemented are expected to decrease the company's burn rate to approximately $400,000 per month in the second quarter of 2011. With a leaner and more cost-effective organizational structure, Bellus Health is now much more solidly positioned to efficiently move its products forward, including Kiacta, which is proceeding on schedule in its confirmatory phase III clinical trial," Mr. Bellini concluded.

During 2010 and the first quarter of 2011, Bellus Health put in place a series of initiatives to reduce its burn rate. In August, 2010, the company announced it would be focusing on supporting its current and future strategic partnerships and on undertaking less expensive product development programs for NRM8499. As a result, Bellus Health significantly reduced its head count and is expected to have approximately 10 full-time employees by the end of second quarter 2011. In January, 2011, the company exercised its right to terminate the lease for its premises in Laval, Que. The company has signed a new lease that will begin on April 8 at the same premises for less space, thereby reducing its operating costs by approximately $4.5-million per year.

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