Labopharm amends debt facility agreement with Hercules Technology Growth Capital

- More Favourable Payment Terms Provide Additional Financial Flexibility as Company Prepares to Launch OLEPTRO(TM) in the U.S. This Quarter -

Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced that Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC) has agreed to amend Labopharm's debt facility agreement such that Hercules has extended both the period of interest-only payments on the loan and the maturity date of the loan. The amended agreement provides Labopharm with approximately $4.5 million in additional liquidity in 2010 and throughout 2011.

Under the amended agreement, Hercules has extended the period during which Labopharm will make interest-only payments on the loan to December 31, 2010 from June 30, 2010. Hercules has also extended the maturity date of the loan to December 1, 2012 from June 1, 2012. All other terms of the agreement remain unchanged.

The amendment provides Labopharm with additional cash resources and financial flexibility during the initial commercialization phase for OLEPTRO(TM), the Company's novel once-daily formulation of the antidepressant trazodone, which will be launched by its joint venture with Gruppo Angelini, Angelini Labopharm, in the U.S. this quarter as planned. The OLEPTRO(TM) commercialization program is in place, including hiring of the sales force, manufacturing of initial quantities of product, and initiation of shipments to wholesalers.