Medicago and Investissement Québec agree to a decrease in interest payments of Medicago's Bio-Levier loan

    QUEBEC CITY, April 29 /CNW/ - Medicago Inc. ("Medicago" or the "Company")
(TSX-V: MDG) announced today that Investissement Québec has agreed to a
moratorium on the payment of approximately $643,877 of interest payable from
January 1, 2008 to December 31, 2008 on a loan made by Investissement Québec
under the "Bio-Levier". In consideration for this, Medicago will issue to
Investissement Québec a total of 643,877 warrants to purchase an equivalent
number of common shares at a price of $0.70 per share for a period of three
years.
    "We would like to thank Investissement Québec for working alongside us to
further the development of our company," said Andy Sheldon, President and CEO
of Medicago.

    About Medicago Inc.

    Medicago is committed to provide highly effective and affordable vaccines
based on proprietary Virus-Like Particle (VLP) and manufacturing technologies.
Medicago is developing VLP vaccines to protect against H5N1 pandemic
influenza, using a transient expression system which produces recombinant
vaccine antigens in non-transgenic plants. This technology has potential to
offer advantages of speed and cost over competitive technologies. It could
deliver a vaccine for testing in about a month after the identification and
reception of genetic sequences from a pandemic strain. This production time
frame has the potential to allow vaccination of the population before the
first wave of a pandemic strikes and to supply large volumes of vaccine
antigens to the world market. Additional information about Medicago is
available at www.medicago.com

    Forward-Looking Statements

    This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00023641EF

For further information: Medicago Inc., Andy Sheldon, President and CEO,
(418) 658-9393; The Equicom Group Inc., Arianna Vanin, Investor Relations,
(514) 844-4680, avanin@equicomgroup.com