September 4, 2002

News Release: Phase II Clinical Trial Approved

BCY LifeSciences (TSXV:BCY) announced today that the Company has been advised by the Therapeutic Products Directorate (TPD) of Health Canada that it can proceed with a planned clinical trial where DCF 987 will be administered to cystic fibrosis (CF) patients. The Phase II double blinded trial will be the first time that DCF 987 has been administered to a group of CF patients. The Company reports that the first patients will enter the trial as quickly as possible following the investigators meeting set for September 23 and following approvals by the Independent Internal Review Board (IRB) of each of the research sites. The trial is planned to be conducted at hospitals located in Vancouver, Toronto, Ottawa, Montreal and Halifax. The head of BCY's clinical advisory board, Dr. Andre Cantin of Sherbrooke, Quebec, may enroll some of his patients in the Montreal arm of the study.

BCY's President & CEO, Mr. Lorne Meikle stated, "our clinical advisory board, consultants and internal scientific team have worked diligently to get the material together to help gain the approval for the Phase II trial. We are all looking forward to the day when the first patient enters the trial. This will truly be an important day for the Company and CF patients".

About BCY LifeSciences

BCY LifeSciences is a Canadian development stage biopharmaceutical company dedicated to acquiring and developing innovative pharmaceutical products or technologies that serve unmet medical needs that offer near term licensing opportunities and reduced scientific/clinical risk. The company's initial technologies are targeted toward developing products for respiratory diseases, including Cystic Fibrosis. 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.

BCY LifeSciences Inc.
Lorne Meikle
President and CEO
(416) 484-4666 x 225

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