An anonymous director reports

SIRONA BIOCHEM ANNOUNCES DEBENTURE FINANCING

Sirona Biochem Corp. has arranged a non-brokered private placement offering of unsecured, convertible debentures. The company is offering convertible debentures units at a price of $1,000 per debenture unit for aggregate gross proceeds of up to $1.5-million.

Each debenture unit will have a face value of $1,120, consisting of $1,000 in principal and $120 in prepaid interest. The principal of the debenture units will accrue interest at a rate of 12 per cent per annum, which accrued interest will be paid semi-annually, in arrears. The company will pay the prepaid interest and accrued interest in cash or, subject to TSX Venture Exchange acceptance, may elect to satisfy payment in kind by issuing shares. In the event of payment in kind, the number of interest shares due will be calculated using a conversion price equal to, subject to acceptance by the TSX-V, the maximum discounted market price (as defined in TSX-V policies) on the applicable payment due date.

The holder may, at its option, convert in full or in part, the principal at any time prior to the maturity date, being the third anniversary of the issue date, into units of the company at 10 cents per unit. Upon conversion of the principal, the company will pay prepaid interest and unpaid accrued interest in cash or, subject to acceptance by the TSX-V, in interest shares issued at the interest conversion price.

Each unit will consist of one share and one non-transferable share purchase warrant. Each warrant will be exercisable by the holder thereof to purchase one share at an exercise price of 15 cents at any time prior to the maturity date.

The company shall have the right to redeem the convertible debentures prior to the maturity date at any time after six months from the issue date, by paying holders in cash the face value of the convertible debentures, together with all prepaid and accrued interest and a redemption penalty payment of 8 per cent of the face value. The company shall give the holders 30 business days notice to do so. On receipt of a redemption notice, a holder may elect to convert all or part of the principal of the convertible debenture into units at the conversion price. All prepaid and accrued interest in respect of the principal amount so converted shall be, at the election of the holder, either paid in cash or, subject to acceptance by the TSX-V, converted into shares at the interest conversion price, by giving the company notice within 10 business days of receipt of the redemption notice.

The closing of the offering is subject to the receipt of necessary regulatory approvals, including the approval of the TSX-V. The convertible debentures, shares, warrants and any warrant shares will be subject to a four-month hold period under applicable securities laws and TSX-V policies. The company may pay eligible finders a fee in connection with the offering.

The company plans to use approximately one-third of the net proceeds from the offering for general corporate purposes, and the remainder of the proceeds will used for research and development expenses (including, but not limited to, laboratory staff salaries, laboratory materials and intellectual property costs).

Dr. Howard Verrico, the chief executive officer, has agreed to subscribe for $500,000 of debenture units. Dr. Verrico's participation is a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of related party participation in the offering. The MI 61-101 exemptions are available as the fair market value of the debenture units, and the fair market value of the consideration for the debenture units, insofar as it involves Dr. Verrico and other interested parties, will not exceed 25 per cent of the company's market capitalization.

About Sirona Biochem Corp.

Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.

Sirona's compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and continuing royalty payments. Sirona's laboratory, TFChem, is in France and is the recipient of multiple French national scientific awards and European Union and French government grants.

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