March 31, 2003

News Release: Receives Orphan-Drug Designation for CF Indication from US FDA

BCY LifeSciences Inc., ('BCY'), announced that the US Food and Drug Administration (FDA) has granted orphan-drug designation for dextran-1 for the treatment of cystic fibrosis (CF). Dextran-1 is the major constituent of BCY's lead compound, DCF 987. Orphan-drug status offers the potential for market exclusivity for up to seven years after FDA marketing approval. 'Research indicates that DCF 987 offers the potential to thin mucus and reduce bacterial load in CF patients,'said Mr. Lorne Meikle, President and CEO of BCY LifeSciences. 'Orphan-drug designation further strengthens the competitive position of DCF 987. Receiving this designation from the FDA will help in our goal to provide a new effective therapy for this underserved patient population.'

The orphan-drug program is intended to encourage research, development and approval of products for diseases that affect fewer than 200,000 patients in the United States. In addition to market exclusivity, orphan-drug designation provides an opportunity to access clinical trial funding, study design assistance and tax incentives in the United States.

BCY recently announced that more than half of the patients required have been enrolled in BCY's Phase II CF clinical trial. The clinical trial is designed to evaluate efficacy and expand the safety profile of DCF 987 in CF patients. The trial, scheduled for completion in the summer of 2003, is being conducted at multiple centers across Canada. CF is the most common genetic disease that causes a debilitating and life-threatening lung disorder.

About BCYLifeSciences

BCY LifeSciences is pharmaceutical development company dedicated to acquiring and developing innovative pharmaceutical products or technologies that serve unmet medical needs with an initial focus on technologies targeting cystic fibrosis (CF). The Company is listed on the TSX Venture Exchange under the ticker BCY and has approximately 30 million shares outstanding. This press release, as well as other press releases and corporate information, can be found on the Company web site: www.bcylifesciences.com.

This news release contains projections and other forward-looking statements regarding future events. Such statements are predictions, which may involve known and unknown risks, uncertainties and other factors, which could cause the actual events or results and company plans and objectives to differ materially from those expressed. For information concerning factors affecting the company's business, the reader is referred to the documents that the company files from time to time with applicable Canadian securities and regulatory authorities.

CONTACT: TEL: (416) 484-4666 x 225 Mr. Lorne Meikle, President & CEO,

BCY LifeSciences Inc.


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