LAB Research receives revised demand letter from Akela Pharma



    LAVAL, QC, June 11 /CNW Telbec/ - LAB Research Inc. ("LRI" or "LAB
Research") (TSX: LRI), a Canadian-based global non-clinical contract research
organization, announces that Akela Pharma Inc. (the "Client"), the parent of
LRI prior to its 2006 Initial Public Offering ("IPO"), a revised demand letter
reaffirming the intention of the client to initiate legal recourses against
LAB Research's Hungarian subsidiary in relation to the studies completed in
Hungary and rejected by the FDA earlier this year. In addition to the Client
requesting the reimbursement of the costs of the studies which totalled
2.74 million Euros, the Client is also seeking payment of the costs to repeat
the studies evaluated at US$5 million as well as damages in the amount of
US$20 million representing the licensing fees the Client claims it would have
received from a potential partner. Finally, the Client reaffirmed its
intention to seek from LRI damages associated with the reduced market
capitalization and loss of rights under the Client's existing licensee which
they admittedly could not calculate.
    The Client's studies had been rejected by the FDA in January 2008 on the
basis of GLP deviations known by the Client at the time of filing. Over the
last year, LRI has proposed a series of initiatives aimed at addressing the
highlighted deviations, which have to date all been rejected by the Client.
    "Our decision to communicate this event is strictly to provide full
disclosure about this potential litigation. LRI and its insurer take no
responsibility for any claims or damages associated with or resulting from the
decision by the FDA to reject the Client's studies and intend to vigorously
contest such claims should they materialize." mentioned Mr. Mainville,
President and CEO of LAB Research. "Furthermore, under the contract signed
concurrently with the IPO, LRI cannot be held liable for any incidental,
indirect or consequential damages of the Client and LRI's liability is limited
to the amount received for such study work and, even in the case of gross
negligence, cannot exceed two (2) times the amount received for the study."
added Mr. Mainville.

    ABOUT LAB RESEARCH INC.

    LAB Research is a Canadian global non-clinical contract research
organization that provides contract research services to the pharmaceutical,
biotechnology, agro-chemical, petro-chemical and industrial markets. LAB
Research supports the development of its customers' products from three
state-of-the-art facilities located in Canada, Denmark and Hungary. LAB
Research's shares trade on the TSX under the symbol "LRI", with 18.1 million
shares outstanding.
    %SEDAR: 00023798EF




For further information:

For further information: LAB Research Inc.: Luc Mainville, Chief
Executive Officer, (450) 973-2240, Ext.: 1206, mainvillel@labresearch.com;
Media and Investor: Echoes Financial Network Inc.: Dominic Sicotte,
1-866-633-9551, (514) 842-9551, dsicotte@echoesfinancial.com

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LAB RESEARCH INC.

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