Biomira restates U.S. GAAP note disclosure for non-cash charges

    EDMONTON, March 2 /CNW/ - Biomira Inc. (Nasdaq:   BIOM) (TSX: BRA) today
announced that it is restating its United States generally accepted accounting
principles ("U.S. GAAP") reconciliation note in its financial statements due
to a recent interpretation by the United States regulatory authorities of the
U.S. accounting rules contained in the Statement of Financial Accounting
Standards ("SFAS") 133, Accounting for Derivative Instruments and Hedging
Activities which determines the current U.S. accounting treatment of the
Company's share purchase warrants.
    The Company reports in accordance with Canadian generally accepted
accounting principles ("Canadian GAAP") and provides note disclosure in its
financial statements with respect to a reconciliation of Canadian GAAP to
U.S. GAAP. Under Canadian GAAP, the Company's share purchase warrants are
classified as equity and recorded at their fair value on issuance. The
interpretation under U.S. GAAP requires that when a company's share purchase
warrants have an exercise price denominated in a currency other than a
company's functional currency, those share purchase warrants must be
classified as liabilities at their fair value with any changes in fair value
being included in the calculation of U.S. GAAP earnings. In these
circumstances, a loss (gain) would be recorded by a company when the value of
the share purchase warrants increases (decreases).
    As a result of this interpretation, the Company will include a
restatement of comparative figures in the U.S. GAAP note included in its
financial statements for the year ended December 31, 2006.
    The Company's previously reported financial results under Canadian GAAP
remain unchanged. These are non-cash charges for U.S. GAAP purposes only that
do not impact the Company's operations or cash flows.
    This restatement only pertains to the Company's U.S. GAAP reconciliation
note disclosure, due to mark-to-market losses/gains arising from the fair
value of these share purchase warrants and the classification of the warrants
as liabilities under U.S. GAAP. The effect of the restatement under U.S. GAAP
is as follows: a decrease in net loss of $3.1 million for the year ended
December 31, 2002, a decrease in net loss of $1.5 million for the year ended
December 31, 2003, an increase in net loss of $0.3 million for the year ended
December 31, 2004, a decrease in net loss of $4.7 million for the year ended
2005, an increase in liabilities of $0.5 million as at December 31, 2005 and a
decrease in shareholders' equity of $0.5 million as at December 31, 2005. For
the year ended December 31, 2006, the Company will include in its U.S. GAAP
note disclosure as a reconciling item a reduction of $4.4 million in losses
related to the change in the fair value of share purchase warrants during the
year. At the time that the Company's share purchase warrants are exercised,
the value of the warrants will be reclassified to shareholders' equity within
the Company's U.S. GAAP note.
    The Financial Accounting Standards Board ("FASB") has initiated a project
to determine the accounting treatment for convertible debt with elements of
foreign currency risk. This project is expected to provide further U.S. GAAP
guidance in respect of accounting for share purchase warrants.

    About Biomira

    Biomira is a biotechnology company specializing in the development of
innovative therapeutic products for the treatment of cancer. Biomira's goal is
to develop and commercialize novel synthetic vaccines and targeted small
molecules that have the potential to improve the lives and outcomes of cancer

    Forward Looking Statements

    This release may contain forward-looking statements. Forward-looking
statements involve risks and uncertainties related to our business and the
general economic environment, many beyond our control, including those
relating to changes in general accounting policies and general economic
factors. These risks, uncertainties and other factors could cause our actual
results to differ materially from those projected in forward-looking
statements. Although we believe that the forward-looking statements contained
herein are reasonable, we can give no assurance that our expectations are
correct. All forward-looking statements are expressly qualified in their
entirety by this cautionary statement. For a detailed description of our risks
and uncertainties, you are encouraged to review the official corporate
documents filed with the securities regulators in Canada and the United
States, including the risk factors described in our 2005 Annual Report.

For further information:

For further information: Investor and Media Relations Contact: Stephanie
Seiler, Ph.D., Gemini BioProjects LLC, (206) 713-0124,

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