Mr. Francois Roberge reports

LSL PHARMA GROUP COMPLETES THE ACQUISITION OF VIRAGE SANTE

LSL Pharma Group Inc. has completed its acquisition of Virage Sante, a company specializing in the manufacturing and marketing of natural health products (NHPs), based in Levis, Que. This acquisition increases LSL Pharma's contract development and manufacturing activities, while creating synergies with its subsidiary, LSL Laboratory Inc.

The purchase price of $2.5-million was paid in cash for the acquisition of Virage. The transaction includes an 8,000-square-foot manufacturing plant. The acquisition of Virage will boost LSL Pharma's revenues by 15 per cent to 20 per cent annually, as well as broaden its client base which will benefit from the LSL Group's expanded service offering.

In operation since 1994, Virage enjoys a great reputation for quality and services. It manufactures a range of NHPs in liquid, powder and capsule form, sold under its own brand or under private labels. Virage`s manufacturing activities, including blistering, encapsulation, and sachet and jar filling, will help expand LSL's service portfolio.

"We are very pleased with this acquisition, which is in line with LSL Pharma's growth strategy of diversifying our service offering and increasing our contract manufacturing operations to better serve the pharmaceutical sector," said Francois Roberge, president and chief executive officer. "The company will continue to operate from its current plant and will be supported by LSL Pharma's head office."

About LSL Pharma Group Inc.

LSL Pharma Group is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceuticals, as well as natural health products in solid-dosage forms.

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