Nuvo announces proposed amendments to outstanding convertible debentures



    MISSISSAUGA, ON, Aug. 1 /CNW/ - Nuvo Research Inc. (TSX: NRI), a Canadian
drug development company focused on the research and development of drug
products delivered to and through the skin using its topical and transdermal
drug delivery technologies, today announced that it is proposing to amend the
terms of its convertible, unsecured debentures (the "Debentures"), of which
$4.136 million principal amount are outstanding. The Debentures were issued in
November, 2004, pay interest at a rate of 5.0% per annum, currently mature in
November, 2009 and are currently convertible into common shares of Nuvo at a
price of $0.30 per share (except for certain Debentures held by directors and
officers of Nuvo, which are currently convertible at a price of $0.39 per
share).
    The board of directors of Nuvo has determined that it would be prudent,
and in the best interests of Nuvo, to extend the maturity date of the
Debentures. As such, Nuvo is seeking the approval of the holders of the
Debentures to extend the maturity date for one year to November 16, 2010. In
consideration for the holders of the Debentures agreeing to such extension,
Nuvo will reduce the conversion price of the Debentures to the current
five-day volume weighted average trading price of the common shares, being
$0.138. Nuvo intends to seek the approval of the holders of the Debentures
over the next few weeks by way of a written resolution, which, to be
effective, must be signed by holders of two-thirds of the outstanding
principal amount of the Debentures.
    "These debentures are potentially problematic in that they mature and
would have to be repaid, if not converted, soon after the date by which we
expect to receive the U.S. FDA's response to our application for Pennsaid
approval, which we expect to submit to the FDA in early 2009," stated Jim
Moulds, Nuvo's Chief Financial Officer. "Our focus over the past several
months has been to extend our financial runway as far as possible beyond the
expected response date by exploring means of raising and conserving cash. The
proposed amendments to the convertible debentures, if accepted by holders of
two-thirds of the outstanding principal amount, represent the removal of a
potentially large cash outlay in November, 2009."

    About Nuvo Research Inc.

    Nuvo is focused on the research and development of drug products
delivered to and through the skin using its topical and transdermal drug
delivery technologies. Nuvo's lead product is Pennsaid(R), a topical
non-steroidal anti-inflammatory (NSAID) used for the treatment of
osteoarthritis. Nuvo intends to leverage its skin-penetrating technologies to
create a portfolio of topical and transdermal products targeting a variety of
indications.

    Nuvo Research Inc. is a publicly traded, Canadian pharmaceutical company
headquartered in Mississauga, Ontario, with manufacturing facilities in
Varennes, Québec and Wanzleben, Germany and a research and development Center
in San Diego California. For more information, please visit
www.nuvoresearch.com.

    These forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ materially
from those contemplated by the forward-looking statements. The Company
considers the assumptions on which these forward-looking statements are based
to be reasonable at the time they were prepared, but caution that these
assumptions regarding the future events, many of which are beyond the control
of the Company and its subsidiaries, may ultimately prove to be incorrect.
Factors and risks, which could cause actual results to differ materially from
current expectations, are discussed in the annual reports, as well as in the
Company's Annual Information Form for the year ended December 31, 2007. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements whether a result of new information, future events,
or except as required by law. For additional information on risks and
uncertainties relating to these forward-looking statements, investors should
consult the Company's ongoing quarterly filings, annual reports and Annual
Information Forms and other filings found on SEDAR at www.sedar.com.





For further information:

For further information: about Nuvo, please contact: Investor Relations,
Adam Peeler, Equicom Group Inc., Tel: (416) 815-0700 x225, email:
apeeler@equicomgroup.com

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