MONTREAL, May 26 /CNW Telbec/ - Magistral Biotech Inc. ("Magistral")
(TSX Venture: MBS) has been granted a Natural Product Number (NPN) from Health
Canada for its cholesterol product Libracol. Magistral is among the first
Canadian companies to obtain Health Canada approval for a non-traditional
natural product which, pursuant to regulations that came into force in 2004,
governs the quality, safety and marketing of non-prescribed products in
Canada. The natural product number should help Magistral in its negotiations
with commercial partners interested in marketing Libracol.
	    In the coming weeks Magistral plans to reach an agreement with its
principal creditors regarding the conversion of all outstanding debentures
into common shares. Magistral will then seek to close a round of financing
that secures sufficient cash for the company to become cash flow positive.
Magistral currently has enough cash on hand to cover two (2) months of
operating expenses. The proposed conversion of debentures will reduce the
company's future financial obligations and facilitate the upcoming round of
fundraising. The terms of the debenture conversion will be communicated in the
coming days and submitted to shareholders and debenture holders for approval
during an extraordinary shareholders meeting that will take place on July 27,
2005.
	    Immediately following the closing of the round of financing, Magistral
will initiate the recruitment of patients for a new clinical study of
Libracol.
	    Magistral also wishes to announce that Mr. Ciro Cucciniello has resigned
from the Board of Directors in order to avoid any possible conflict of
interest related to the upcoming round of financing, and that Mr. Pierre-AndrDe
Ouimet has resigned from the Board of Directors and as Chairman of the Board
for personal reasons. Magistral thanks these two directors for their
contributions.
	
	    Magistral Biotech profile
	
	    Magistral Biotech Inc., a Canadian company, provides scientifically
designed natural health products that address significant medical conditions
such as high blood cholesterol, hair loss, and prostate problems. Magistral
Biotech works in partnership with researchers at the University of Sherbrooke
in order to provide consumers with efficient, safe medications of the highest
possible quality. Magistral Biotech shares trade on the TSX Venture Exchange
under the symbol MBS. For further information, please consult the Internet
site of the Corporation at www.magistralbiotech.com
	
	    The TSX Venture Exchange accepts no liability with regard to the
	    relevance or accuracy of the present press release.

	    -0-                           05/26/2005
	    /For further information: Investor information: Evolution Group Inc., 
Sylvain Archambault or Isabelle Turcotte, (514) 448-4887 or (866) 703-4887, 
info(at)evolutiongrp.com ; Magistral Biotech Inc., Raymond Robert, Director, 
Finance, (450) 979-7878/