Medicago announces closing of its previously announced equity offering for
gross proceeds of CAN$7.5 million

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

QUEBEC CITY, Aug. 19 /CNW/ - Medicago Inc. ("Medicago" or the "Company") (TSX: MDG), announces that it has closed its previously announced offering of 18,518,520 units at a price of $0.405 per unit for gross proceeds of $7.5 million. Each unit is comprised of one common share and three-quarter of one common share purchase warrant. Each full warrant is exercisable at a price of $0.50 for a period of 5 years. The offering was managed by Dundee Securities Corporation with Paradigm Capital Inc. as agent, and Bloom Burton & Co. as member of the selling group. Roth Capital Partners, LLC was the lead selling group member. The offering has been effected in each of the provinces of British Columbia, Alberta, Ontario and Quebec by way of a prospectus supplement to Medicago's base shelf prospectus dated July 7, 2010.

Medicago intends to use the net proceeds from the offering to fund its participation under the cost-sharing program pursuant to the previously announced Technology Investment Agreement following the award of a US$21 million funding award from the Defense Advanced Research Projects Agency ("DARPA") and for other general corporate and working capital purposes.

About Medicago

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 news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with Medicago's business and the environment in which the Company operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to Medicago or its management. The forward-looking statements are not historical facts, but reflect Medicago's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors and Uncertainties" in Medicago's Annual Information Form filed on March 24, 2010 with the regulatory authorities. Medicago assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

SOURCE Medicago Inc.

For further information: For further information:

Medicago Inc.
Andy Sheldon
President and CEO   
(418) 658-9393
Medicago Inc.
Christina Cameron
Investor Relations Manager
(418) 658-9393 x156

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Medicago Inc.

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