HMSL Hemosol (MM)

Hemosol Announces Completion of Health Canada Inspection - Positive rating from regulatory agency clears way for delivery of Hepalean(R) products to Organon Canada and other potential clients of the Company's bio-manufacturing services - TORONTO, June 7 /PRNewswire-FirstCall/ -- Hemosol Corp. (NASDAQ:HMSLNASDAQ: TSX:NASDAQ:HML) today announced that the Company has received a 'Compliance' rating from Health Canada following the completion of the regulatory agency's licence inspection of Hemosol's Meadowpine facility. Formal licensing of the facility will allow Hemosol to proceed with shipping Hepalean(R) products under its contract with Organon Canada and to attract and fulfill other commercial bio-manufacturing relationships. Hemosol expects to receive the formal licence and to begin shipping product in the coming weeks. "Our receipt of this important rating is a key milestone in leveraging our state of the art manufacturing facility and implementing our bio-manufacturing initiative," said Dr. Dirk Alkema, Vice President of Operations at Hemosol. "This is a fiscal strategy to generate revenue in the near to mid-term, while also proceeding with our initiative to produce valuable therapeutic proteins from human plasma. Our production team deserves recognition and praise for successfully meeting the rigorous timelines and requirements of this inspection." In September of 2004 Hemosol signed a multi-year agreement with Organon Canada, the pharmaceutical division of Akzo Nobel. This agreement, with an initial term of three years, will see Hemosol become the exclusive Canadian manufacturer and supplier of licensed "Hepalean(R)" products to Organon. As part of this agreement, Hemosol installed an aseptic vial filling capability to fill and package the Hepalean(R) products for delivery. While currently dedicated to the filling of Hepalean(R) products, the Company also expects to use this filling capability in the future, to package therapeutic plasma protein products for both clinical evaluations - slated to begin in 2006 - as well as initial commercial production. Additionally Hemosol has sterile bag filling capability that can be used as a part of its fiscal strategy to generate near-term revenues to reduce its net operating expenses. About Hemosol Hemosol is a biopharmaceutical company focused on the development and manufacturing of biologics, particularly blood-related proteins. Hemosol has a broad range of novel therapeutic products in development, including oxygen therapeutics and protein-based therapeutics to treat certain infectious diseases, cancers and anemia. For more information visit Hemosol's website at http://www.hemosol.com/. The Common Shares are listed on the NASDAQ Stock Market under the trading symbol "HMSL" and on the TSX under the trading symbol "HML". Certain statements concerning Hemosol's future prospects are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities legislation. There can be no assurances that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include, but are not limited to: Hemosol's ability to successfully implement the Cascade technology and commercialize products derived there from; Hemosol's ability to obtain additional financing which is critical to the implementation of the Cascade technology and to Hemosol's continued viability as a going concern; Hemosol's ability to obtain regulatory approvals for its products; Hemosol's ability to successfully complete clinical trials for its products; Hemosol's ability to enter into satisfactory arrangements for the supply of materials used in its manufacturing operations and the sale of resulting products to customers; technical, manufacturing or distribution issues; the competitive environment for Hemosol's products and services; the degree of market penetration of Hemosol's products; Hemosol's ability to attract and retain clients for its bio-manufacturing services; the risk that Hemosol may not become profitable; and other factors set forth in filings with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of Hemosol with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Hemosol makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. DATASOURCE: Hemosol Corp. CONTACT: Jason Hogan, Investor & Media Relations, (416) 361-1331, (800) 789-3419, (416) 815-0080 fax, , http://www.hemosol.com/; Archived images on this organization are searchable through CNW Photo Archive website at http://photos.newswire.ca/. Images are free to accredited members of the media. To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on reports@cnw.

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