Mr. Doug Janzen reports

AEQUUS ANNOUNCES NEW FINANCING

Aequus Pharmaceuticals Inc. has increased its debt by $1-million to support operating costs and the new sales of Zimed. Doug Janzen, chairman and chief executive officer of the company, has agreed to provide financing to Aequus by way of advanced funds on the same general conditions as previous advances, which is on demand with an interest rate of 5 per cent.

The loan involves a related party (as such term is defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, specifically a director and senior officer of the company, and constitutes a related party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, as the company is not listed or quoted on any of the stock exchanges or markets listed in subsection 5.5(b) of MI 61-101, and the loan represents a loan from a related party on reasonable commercial terms that are not less advantageous to the company than if the loan were obtained from a person dealing at arm's length and the loan is not convertible or repayable in securities.

About Aequus Pharmaceuticals Inc.

Aequus is a specialty pharmaceutical company focused on developing and commercializing high-quality differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or licence, remaining focused on highly specialized therapeutic areas.

We seek Safe Harbor.