Inex Pharmaceuticals Announces Completion of Spin-out of Tekmira Pharmaceuticals Corporation



    VANCOUVER, May 1 /CNW/ - Tekmira Pharmaceuticals Corporation ("Tekmira";
TSX - TKM) and Inex Pharmaceuticals Corporation ("INEX") announced today that
the spin-out of Tekmira has been completed and that new common shares of
Tekmira will begin trading on the Toronto Stock Exchange ("TSX") on May 1,
2007 under the symbol "TKM". Tekmira will continue the biotechnology business
of INEX.
    Immediately before the spin-out of Tekmira, INEX common shares were
consolidated on the basis of two current common shares for one new common
share. INEX shareholders, as of the close of business on April 30, 2007, will
own 100% of the new common shares of Tekmira and 20% of the equity of INEX.
Effective May 1, 2007, the new common shares of INEX are de-listed from
trading on the TSX. INEX will be seeking new opportunities outside the
pharmaceutical industry under new management.
    Tim Ruane, President and CEO of Tekmira, said Tekmira and its partners
are advancing multiple product candidates and technology programs based on
Tekmira's proprietary pharmaceutical technologies.
    "We believe our progress over the past 12 months has demonstrated that
together with our partners we are developing drugs on the leading edge of
exciting new treatments for cancer and other diseases," Ruane said.
    Three products using Tekmira's proprietary technology are now in human
clinical trials and Tekmira expects as many as eight products could be in
clinical trials in 2008.
    In the past 12 months, Tekmira has signed two broad partnerships with
large biotechnology companies bringing the company approximately
US$28.5 million in committed funding plus additional funds as milestones are
achieved. One of the partnerships established Tekmira as a leader in providing
drug delivery technology to drugs based on RNA interference, technology that
was awarded the 2006 Nobel Prize for medicine. In addition, Tekmira recently
completed a $16 million Canadian equity financing.

    Details of Tekmira Spin-out

    As part of the completion of the spin-out of Tekmira, INEX also closed a
$5.3 million convertible debenture financing. Upon conversion of the
debentures, the holders of the convertible debentures will, in aggregate, hold
100% of the non-voting shares in INEX and 80% of the total number of shares
outstanding, and holders of INEX common shares will own 20% of the equity of
INEX. Of the $5.3 million debenture financing, $5.2 million will be paid to
the previous holders of INEX's convertible debt as required under the terms of
a Note Purchase and Settlement Agreement announced June 20, 2006 and
$0.1 million will be retained by INEX for working capital purposes. Orion
Securities Inc. acted as a financial advisor to INEX with respect to the
spin-out of Tekmira.
    INEX has mailed a letter of transmittal to all registered INEX
shareholders which will provide for the exchange of currently outstanding INEX
common shares for shares of Tekmira. INEX shareholders are required to deposit
with Tekmira's share transfer agent the certificate representing their current
holdings of INEX shares and the letter of transmittal, properly completed and
signed, in order to obtain common shares of Tekmira and INEX. One Tekmira
common share will be issued for each post-consolidation INEX common share. As
part of the spin-out, INEX common shares were consolidated on the basis of two
current common shares for one new common share.

    About Tekmira

    Tekmira is a Canadian biopharmaceutical company developing and
commercializing proprietary drugs and drug delivery systems to improve the
treatment of cancer. Further information about Tekmira and this news release
can be found at www.tekmirapharm.com.

    About INEX

    On May 1, INEX spun out its entire biotechnology business, assets and
intellectual property into Tekmira Pharmaceuticals Corporation. Immediately
before the spin-out of Tekmira, INEX common shares were consolidated on the
basis of two current common shares for one new common share. INEX shareholders
own 100% of the new common shares of Tekmira and 20% of the equity of INEX.
Effective May 1, 2007, the new common shares of INEX are de-listed from
trading on the TSX. INEX will be seeking new opportunities outside the
pharmaceutical industry under new management.

    Forward Looking Statements

    There are forward-looking statements and information contained herein
that are not based on historical fact, including without limitation statements
containing the words "believes," "may," "plans," "will," "estimate,"
"continue," "anticipates," "intends," "expects," and similar expressions, and
the negative of such expressions. Such forward-looking statements and
information involve known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements and information. Such factors include,
among others, Tekmira's stage of development, lack of product revenues,
additional capital requirements, risks associated with the completion of
clinical trials and obtaining regulatory approval to market Tekmira's
products, the ability to protect its intellectual property and dependence on
collaborative partners. These factors should be considered carefully and
readers are cautioned not to place undue reliance on such forward-looking
statements or information. Tekmira disclaims any obligation to update any such
factors or to publicly announce the result of any revisions to any of the
forward-looking statements or information contained herein to reflect future
results, events or developments, except as required by law.

    Effective May 1, 2007, the common shares of Tekmira are traded on the
    Toronto Stock Exchange under the trading symbol "TKM".

    Effective May 1, 2007, the common shares of INEX are de-listed from
    trading on the Toronto Stock Exchange.





For further information:

For further information: Investors: Ian Mortimer, Senior Vice President,
Finance and Chief Financial Officer, Phone: (604) 419-3200; Media: Nicole
Rizgalla, James Hoggan & Associates Inc., Phone: 604-742-4268, Email:
nrizgalla@hoggan.com; Inex Pharmaceuticals Corporation: Sheldon Reid, Phone:
(403) 569-5777

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Tekmira Pharmaceuticals Corporation

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