Bioniche Allows Conversion of Portion of Revolving Credit Facility



    - results in US$1.85 million of new available funds -

    BELLEVILLE, ON, Sept. 9 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a
research-based, technology-driven Canadian biopharmaceutical company, today
announced that the Company has allowed the conversion of a portion of its
revolving credit facility with the Laurus/Valens family of funds into common
shares.
    The Company is converting US$1.85 million of the revolving facility into
equity, at the previously negotiated 15% discount to the ten-day volume
weighted average price on September 5, 2008. This results in the issuance of
4,565,049 shares. The conversion is in accordance with the formula set out in
the original agreement signed in 2005. In addition, the Company will issue
211,429 five-year warrants at market price ($0.49 per share) in exchange for
Laurus/Valens waiving certain volume restrictions relating to the conversion
under the agreement. There is no penalty attached to this repayment. The
transaction is subject to regulatory approval.
    "We realize that this transaction represents some dilution to existing
shareholders," said Graeme McRae, Chairman, President & CEO of Bioniche Life
Sciences Inc. "However, it should be considered as a component of a larger
financial package that is under discussion. This package will be announced at
such time as its details are agreed and found to be in the best interest of
shareholders. This being said, Bioniche cannot guarantee its successful
conclusion."
    The Company continues to focus on its strategic priorities: full
registrations of the E. coli O157:H7 cattle vaccine in Canada and the U.S. and
the successful completion of the Phase III clinical program with Urocidin in
the treatment of non-muscle-invasive bladder cancer. As a part of these works,
the Company has ongoing discussions with potential marketing partners related
to Urocidin and continues to pursue an optimal partnership agreement. The
Company is also making progress on the $25 million scale-up of its vaccine
manufacturing facility in Belleville, Ontario, funded primarily through
Canadian and Ontario government programs.

    About Bioniche Life Sciences Inc.

    Bioniche Life Sciences Inc. is a research-based, technology-driven
Canadian biopharmaceutical company focused on the discovery, development,
manufacturing, and marketing of proprietary products for human and animal
health markets worldwide. The fully-integrated company employs approximately
200 skilled personnel and has three operating divisions: Human Health, Animal
Health, and Food Safety. The Company's primary goal is to develop proprietary
cancer therapies supported by revenues from marketed products in human and
animal health. Bioniche has been named one of Canada's Top Ten Life Sciences
Companies for 2008. For more information, please visit www.Bioniche.com.

    Except for historical information, this news release may contain
forward-looking statements that reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause, but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process, and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.

    %SEDAR: 00013159EF




For further information:

For further information: Jennifer Shea, Vice-President, Communications,
Investor & Government Relations, Bioniche Life Sciences Inc., Telephone: (613)
966-8058, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com

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