Ambrilia Biopharma Inc. (TSX:AMB) today announced that it has elected to
prioritize its divestment strategy of monetizing (selling or licensing) its
clinical assets C2L and goserelin before year-end along with cost-cutting
actions which result in a hold on its antiviral R&D activities, significant
reduction in cash consumption and a 33% decrease in headcount. Previously
announced 2008 milestones for the main development programs are unaffected.


"This was a tough decision but Ambrilia having less than 12-months of cash in a
difficult market environment, immediate action was required in order to extend
its cash further into 2009 while concentrating only on the monetization of the
oncology assets," said Philippe Calais, President and CEO. "At the moment, we
believe the divestment strategy offers the best probability of success for the
Company and more importantly, the potential to generate non-dilutive R&D funding
and extend the runway to financing. When fully executed, Ambrilia will be in a
position to better assess various strategic options for its antivirals
portfolio."


He concluded, "We are moving closer to reaching our strategic goal for
octreotide C2L and goserelin which is to conclude an agreement with the best
acquirer or licensing partner by the end of 2008."


Ambrilia's further commitment to its divestment strategy and cost-cutting
actions impact primarily the antiviral R&D activities and the cash burn:


Monthly cash burn: target reduced from less than or equal to $1.4M to less than
or equal to $1.0M


The cost-cutting actions include a 33% decrease in headcount, from 43 to 29
employees, in the basic research and preclinical team and administrative support
functions. Some outsourcing and consultant expenses related to the hold on
virology R&D activities were also cut. These measures are expected to decrease
the Company's monthly cash burn by approximately $0.4M.




ONCOLOGY

Divestments (selling or licensing): no change
- C2L octreotide, goserelin, PCK3145, PSP: ongoing

C2L octreotide: no change
- Advance clinical Phase III program: ongoing
      - 301 study (30mg):  achieved
      - 302 study (30mg): achieved
      - 303 study (10 and 20mg): ongoing
      - Initiate regulatory filings (30mg): pending

Goserelin: no change
- Complete goserelin 3-month formulation validation: achieved
- Complete goserelin 1-month formulation: achieved
- Initiate clinical Phase I/II program (3-month formulation):  achieved

NGR-delivery technology: no change
- Complete and validate siRNA proof-of-concept in vivo: achieved

VIROLOGY

Early-stage antiviral portfolio: hold on R&D activities
- Generate at least one preclinical drug candidate by H1/2009: hold
- Continue to make further progress in the HIV integrase program: hold
- Initiate chemistry lead optimization for HIV and Hepatitis C inhibitors,
  and anti-Influenza A compounds during 2008: hold



PPL-100/MK-8122: no change

On July 28, Ambrilia announced it was advised by Merck & Co. that HIV protease
inhibitor PPL-100, also known as MK-8122, had been placed on a development hold
pending outcome of additional basic science efforts to evaluate other precursors
of the drug (prodrugs) and formulation options. Merck is also further exploring
development of potential back-up compounds. Ambrilia's partnership with Merck
continues and the Company awaits their further progress on the program.


Ambrilia's strategy is to capitalize on its broad product portfolio and original
expertise in virology. The Company has elected to prioritize its divestment
strategy of monetizing (selling or licensing) its oncology assets with
cost-cutting actions which resulted in a hold on its antiviral R&D activities.
The divestment strategy aims to generate non-dilutive R&D funding for Ambrilia,
preserve its cash flow and extend the runway to financing.


AMBRILIA'S FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that reflect the
Company's current expectation regarding future events. There is a risk that
expectations and forward looking statements will not prove to be accurate.
Readers are cautioned not to place undue reliance on these forward-looking
statements as they involve risks and uncertainties, which could make actual
results differ materially 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's filings. We refer you to the
Risk Factors section of the Company's annual information form which contains a
more exhaustive analysis of the risks and uncertainties that are generally
connected to the business of the Company. Such statements are also based on
various assumptions, including the successful and timely completion of clinical
studies on Ambrilia's products demonstrating efficacy and safety for human use,
their successful commercialization within the forecasted timelines and the
attainment of the forecasted milestone payments and other revenues. While
Ambrilia anticipates that subsequent events and developments may cause
Ambrilia's views to change, Ambrilia specifically disclaims any obligation to
update these forward looking statements, unless obligated to do so by applicable
securities laws.


ABOUT AMBRILIA BIOPHARMA

Ambrilia Biopharma Inc. (TSX:AMB) is a biotechnology company focused on the
discovery and development of novel treatments for viral diseases and cancer. The
Company's strategy aims to capitalize on its broad portfolio and original
expertise in virology. Ambrilia's product portfolio is comprised of oncology and
antiviral assets, including two new formulations of existing peptides for cancer
treatment, a therapeutic peptide for prostate cancer, a targeted delivery
technology for cancer, an HIV protease inhibitor program (exclusive worldwide
rights granted to Merck & Co., Inc.) as well as HIV integrase and entry
inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds.
Ambrilia's head office, research and development and manufacturing facilities
are located in Montreal with a regional office in France.


For more information, please visit the Company's web site: www.ambrilia.com