Medicago intends to complete non-brokered private placement of 2 million dollars


    QUEBEC CITY, Feb. 22 /CNW/ - Medicago Inc. ("Medicago") (TSX Venture:
MDG) announces that it intends to complete a non-brokered private placement of
approximately 10,000,000 units (the "Units") at a price of $0.20 per Unit for
gross proceeds to the Company of approximately $2,000,000. It is expected the
closing will occur on or around March 15, 2008.
    Each Unit shall consist of one common share (the "Common Shares") and
one-half common share purchase warrant of Medicago (the "Warrants") with each
full warrant ("Warrant") entitling the holder thereof to purchase one Medicago
Common Share for a purchase price of $0.25 at any time prior to 5:00 p.m.
(Montreal time) on the date that is 24 months following the closing of the
private placement. The Common Shares, the Warrants and the Common Shares
underlying the Warrants will be subject to a statutory four-month hold period.
    The offering is being made on a private placement basis pursuant to
registration and prospectus exemptions of applicable securities laws and its
completion is subject to acceptance by the TSX Venture Exchange and certain
contractual approvals. The Company intends to pay, where appropriate, a cash
finder's fee of 6% in connection with the placement. The net proceeds from the
offering will be used to fund and support the development of multiple vaccine
products. The balance will be allocated to working capital and other general
corporate purposes.

    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities of Medicago in the United States. The
securities have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or unless an exemption from such registration is

    About Medicago Inc.

    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 the cells of 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

    Forward-Looking Statements

    This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.

    The TSX Venture Exchange assumes no responsibility for the content or
    accuracy of this press release

    %SEDAR: 00023641EF

For further information:

For further information: Medicago Inc., Andy Sheldon, President and CEO,
(418) 658-9393; The Equicom Group Inc., Arianna Vanin, Investor Relations,
(514) 844-4680,

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