BIOPHAGE PHARMA (fka BIPMF)

[oasdihf]

With the financing now closed hopefully the worst is behind us:

Biophage Pharma announces the closing of a second tranche of the private placement
Wednesday February 28, 3:38 pm ET

MONTREAL, Feb. 28 /CNW Telbec/ - (TSX.V: BUG). Biophage Pharma Inc. ("Biophage") announces today that it has closed a second tranche of the private placement of units of Biophage announced by way of press release on December 22, 2006, for gross proceeds of $386,350.05. Each unit is composed of one common share of the capital of Biophage and one non-transferable warrant. Each such warrant entitles the holder thereof to purchase one common share of the capital of Biophage for a price of $0.17, at any time for a period of two years after the date of its grant. The common shares to be issued at a price of $0.13 per share and the common shares underlying the warrants have a four-month resale restriction. This second tranche raises the total amount of the current private placement to $525,910.05. Boom Capital Inc. has received, as compensation for this second tranche, a cash commission of $3,800 and 44,705 common share purchase warrants exercisable at a price of $ 0.17 per share until February 28, 2009.

The Corporation is planning to apply the net proceeds from the private placement towards accelerating the development and commercialization of its compact PDS96(R) Biosensor and to strengthen in-house sales and marketing task force in order to substantially increase the company's income and build value in the three different divisions: Biosensor division, Phage therapy division and ImmunoTox Labs.

The private placement is subject to the necessary approvals of the TSX Venture Exchange and the securities authorities

About Biophage Pharma inc.

Biophage Pharma is a high potential, revenue-driven Canadian biotechnology company focused on the development of innovative phage-based products and technologies for the detection and management of bacterial contaminations. Founded in 1995, Biophage operates three divisions: (1) The phage therapy division for the management of bacterial contaminations in the medical, veterinary and environment fields; (2) The Biosensors division for the development and commercialization of Biosensors, more particularly a portable PDS96(R) Biosensor which is entering in the pre-commercialization stage; (3) The Immunotox Labs division, which provides services in Immunogenicity and Immunotoxicity, Nanotoxicity and Ecotoxicology, Beryllium sensitivity testing and MELISA(R) testing for the detection of sensitization to more than 200 different allergens including metals, penicillin, gluten and pollens.

(www.biophagepharma.net; www.immunotoxlabs.net)


The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

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