Hemosol Announces Closing of Reorganization and Cash Infusion

Hemosol Announces Closing of Reorganization and Cash Infusion



TORONTO, May 3  /PRNewswire-FirstCall/ -- Hemosol Corp. (TSX: HML) today
announced that the reorganization transaction involving Hemosol, its
securityholders and MDS Inc. has been completed effective May 1, 2004. Under
the arrangement, Hemosol has received a cash infusion of $16 million for a
significant portion of its unused tax losses and other tax assets.

"We now have sufficient cash resources to proceed with a number of initiatives
including implementing the novel Cascade plasma purification technology
developed by ProMetic Life Sciences and the American Red Cross; further
developing product candidates in our research pipeline, including HEMOLINK; and
providing bio-manufacturing services to other biotech companies," said Lee
Hartwell, Chief Executive Officer of Hemosol.

Shareholders of record at the close of business on May 7, 2004 will receive
certificates representing common shares of Hemosol Corp. and Class A shares of
LPBP Inc. in exchange for Hemosol Inc. shares.

Hemosol Corp. will trade on the Toronto Stock Exchange under the symbol HML and
on the Nasdaq National Market under the symbol HMSL.

About Hemosol

Hemosol is a biopharmaceutical company focused on the development and
manufacturing of biologics, particularly blood-related proteins. The Company
has a broad range of novel therapeutic products in development, including
HEMOLINK(TM) (hemoglobin raffimer), an oxygen therapeutic designed to rapidly
and safely improve oxygen delivery via the circulatory system. Hemosol also is
developing additional oxygen therapeutics, a hemoglobin-based drug delivery
platform to treat diseases such as hepatitis C and cancers of the liver, and a
cell therapy program initially directed to the treatment of cancer. Hemosol
intends to leverage its expertise in manufacturing blood proteins and its
state-of-the-art Meadowpine manufacturing facility to seek additional strategic
growth opportunities.

Hemosol common shares are listed on The Nasdaq National Market under the
trading symbol "HMSL" and on the Toronto Stock Exchange under the trading
symbol "HML".

HEMOLINK is a registered trademark of Hemosol. 

DATASOURCE: Hemosol Inc.



CONTACT: Jason Hogan, Investor & Media Relations, [phone],

800 789 3419, [phone] fax, , http://www.hemosol.com/;

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