MedMira Closes $6.5M in Funding from Morningside

New Institutional Equity Funding Brings Strategic Partner and Fuels

Growth Plans for MedMira

Mar 17, 2006, 00:00 ET from MedMira Inc.

    HALIFAX, March 17 /PRNewswire-FirstCall/ - MedMira Inc., ("MedMira") (TSX
 Venture: MIR, NASDAQ:   MMIRF) the global market leader in premium rapid
 diagnostic solutions and Morningside Venture (IV) Investments Limited
 ("Morningside"), a member of the global private equity and venture capital
 group, the Morningside group, jointly announced today that they have closed
 $6.5 million (Canadian dollars) in equity financing from Morningside to
 MedMira, that was announced on March 6, 2006.
     "With the terms of the deal now finalized, we look forward to working
 with MedMira's executive team on the strategic growth plans for the company,"
 said George Chang, chief financial officer of Morningside Asia. "We are
 confident that MedMira can capitalize on the potential for their existing line
 of rapid tests while continuing to develop new innovative diagnostic solutions
 for the global healthcare market."
     Under the terms of the agreement Morningside acquired 10,833,333 equity
 units at $0.60 per unit, for total net proceeds of $5.6 million in cash after
 retirement of a USD$775,000 promissory note. Each equity unit consists of 1
 common share and one half of a common share purchase warrant, for a total of
 10,833,333 common shares and 5,416,667 common share purchase warrants being
 issued. Each warrant entitles Morningside to purchase one common share of
 MedMira at $0.69 per share for a two year period, ending on March 16, 2008.
 Following this private placement transaction, Morningside owns 10,833,333
 common shares of MedMira and warrants to acquire 5,416,667 common shares of
 MedMira. As a result, Morningside has become an 18.8% Shareholder of MedMira.
 Both the common shares and the common share purchase warrants are subject to a
 four month hold period that expires on July 16, 2006. Morningside has the
 right to nominate one director to the Board of MedMira. This transaction is
 subject to the final approval of the TSX Venture Exchange. Morningside
 acquired the securities for investment purposes only and has no current intent
 of acquiring any further securities of MedMira other than those pursuant to
 the exercise of warrants.
     "We are very excited about Morningside's strategic investment in MedMira
 and the synergies between our two companies, sharing a common vision and
 focus," said Stephen Sham, chairman and CEO of MedMira. "This new financing
 will enable MedMira to capitalize on key growth opportunities and advance key
 initiatives including the expanding over-the-counter market and co-infection
 rapid tests."
     About Morningside Group
     Morningside group is an international investment group founded in 1986 by
 the Chan family of Hong Kong. The Chan family founded the Hang Lung Group, one of Hong Kong's largest property development and
 investment companies, in Hong Kong in 1960. Morningside group has investments
 in North America, Europe, across Asia-Pacific, and since 1992, in Mainland
     For more information
     For copies of the early warning report in connection with this private
 placement transaction please contact Morningside group's representative at the
 contact information noted below.
     About MedMira
     MedMira is the leading global manufacturer and marketer of in vitro flow-
 through rapid diagnostic tests. MedMira's tests provide reliable, rapid
 diagnosis in just 3 minutes for the detection of human antibodies in human
 serum, plasma or whole blood for diseases such as HIV and hepatitis C. The
 United States FDA and the SFDA in the People's Republic of China have approved
 MedMira's Reveal(R) G2 and MiraWell(R) rapid HIV tests, respectively.
     MedMira's Reveal(R) G2 and MiraWell(R) rapid HIV tests are currently used
 in clinical laboratories, hospitals, and clinics where professional
 counselling and patient treatment are immediately available.
     The MiraCare(TM) Rapid HIV Antibody Test is available over-the-counter
 (OTC) in pharmacies throughout Hong Kong and Macao Special Administrative
 Regions, in the People's Republic of China. MiraCare(TM) is sold through
 MedMira's distributor network to pharmacies, hospitals and laboratories in the
 European Union.
     MedMira delivers rapid diagnostic solutions to healthcare communities
 around the globe. Its corporate offices and manufacturing facilities are
 located in Halifax, Nova Scotia, Canada with a representative office in
 Guilin, China.
     This news release contains forward-looking statements, which involve risk
 and uncertainties and reflect the company's current expectation regarding
 future events. Actual events could materially differ from those projected
 herein and depend on a number of factors including, but not limited to,
 changing market conditions, successful and timely completion of clinical
 studies, uncertainties related to the regulatory approval process,
 establishment of corporate alliances and other risks detailed from time to
 time in the company quarterly filings.
     The TSX Venture Exchange has not reviewed and does not accept
 responsibility for the adequacy or accuracy of this statement.
     For more information visit MedMira's website at

SOURCE MedMira Inc.