Osta Biotechnologies Announces Suspension from Trading and Cease Trade Order

THE ISSUE OF THIS PRESS RELEASE IS LIMITED TO CANADA ONLY. THIS PRESS RELEASE
SHOULD NOT BE ISSUED IN THE UNITED STATES THROUGH U.S. NEWS WIRE AGENCIES.


Osta Biotechnologies Inc. (TSX VENTURE:OBI) reports that effective May 3, 2012,
the TSX Venture Exchange suspended trading in the Company's securities as a
result of a Cease Trade Order (CTO) issued on May 3, 2012 by the Autorite des
marches financiers because the Company had not filed its audited financial
statements as at and for the year ended December 31, 2011, accompanying
management's discussion and analysis, and related CEO and CFO certification for
the year ended December 31, 2011 within the prescribed 120 day period set out in
National Instrument 51-102 and National Instrument 51-109, respectively.


As previously-announced, as a result of limited financial resources and a
continuing difficulty in raising additional working capital, the Company is not
in a position to prepare and file its financial statements for the time being.
Management and the Board of Directors continue to reduce expenses and limit
operations with a view toward conserving all available cash until such time as
adequate funding can be secured or an acceptable alternative is identified.


About Osta Biotechnologies Inc.

Osta is a biopharmaceutical company listed on the TSX Venture Exchange currently
focusing on developing therapeutics for Cancer and Alzheimer's disease. 


Forward looking statements:

Certain statements in this press release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of the
Company or the industries in which it operates to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, the words
"estimate", "believe", "anticipate", "intend", "expect", "plan", "may",
"should", "will", the negative thereof or other variations thereon or comparable
terminology are intended to identify forward-looking statements. Such statements
reflect the current expectations of the management of the Company with respect
to future events based on currently available information and are subject to
risks and uncertainties that could cause actual results, performance or
achievements to differ materially from those expressed or implied by those
forward-looking statements. These risks and uncertainties include, but are not
limited to, economic, competitive, governmental and technological factors
affecting the Company's operations, markets, products, prices and other factors
as are detailed from time to time, including, without limitation, under the
heading "Risk Factors", in documents filed by the Company with the Canadian
securities regulatory authorities which are available at www.sedar.com and to
which readers of this press release are referred for additional information
concerning the Company, its prospects and the risks and uncertainties relating
to the Company and its prospects. New risk factors may arise from time to time
and it is not possible for management to predict all of those risk factors or
the extent to which any factor or combination of factors may cause actual
results, performance and achievements of the Company to be materially different
from those contained in forward-looking statements. Although the forward-looking
statements contained in this press release are based upon what management
believes to be reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with these forward-looking statements. Given
these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. 


The forward-looking information contained in this press release is current only
as of the date of the press release. The Company does not undertake or assume
any obligation to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as required by law.