Aeterna Zentaris Announces Pricing of US$16.5 Million Public Offering of Common Shares and Warrants

   Aeterna Zentaris Announces Pricing of US$16.5 Million Public Offering of
                          Common Shares and Warrants

PR Newswire

QUÉBEC CITY, Oct. 12, 2012

QUÉBEC CITY, Oct. 12, 2012 /PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ: AEZS)
(TSX:AEZ) (the"Company")  today  announced  the pricing  of  its  previously 
announced public offering  of 6.6  million units (the  "Offering"), with  each 
unit consisting of  one common share  and 0.45  of a warrant  to purchase  one 
common share, at a purchase  price of US$2.50 per  unit. Each warrant will  be 
exercisable for a period  of five years following  the issuance thereof at  an 
exercise price  of US$3.45  per  share. Net  proceeds  from the  Offering  are 
expected to  be approximately  US$15.2 million,  after deducting  underwriting 
commissions and other expenses related to the Offering.

Roth Capital Partners, LLC is acting as the sole manager  for the Offering.

The Offering is expected  to close on  or about October  17, 2012, subject  to 
customary closing conditions including, but not limited to, the receipt of all
necessary regulatory approvals, including the  approvals of the Toronto  Stock 
Exchange  and the NASDAQ Global Market.

The Company intends to use the net  proceeds from the Offering to continue  to 
fund its ongoing drug development  activities, particularly for the  continued 
development of  perifosine in  multiple  myeloma and  the advancement  of  its 
AEZS-108 and AEZS-130 programs, as well as for general corporate purposes  and 
working capital.

The Offering  is being  conducted pursuant  to the  Company's effective  shelf 
registration statement  on  Form  F-10  filed with  the  U.S.  Securities  and 
Exchange  Commission  (the  "SEC"),  its  corresponding  Canadian  base  shelf 
prospectus  and  an  exemption  from  the  Autorité  des  marchés   financiers 
permitting the  Company to  offer common  shares and  warrants in  the  United 
States. A final prospectus supplement relating to the Offering, along with the
accompanying base shelf prospectus,  will be filed with  the SEC and with  the 
securities regulatory authority in each of the provinces of Canada. A copy  of 
the final prospectus supplement and the accompanying base shelf prospectus can
be obtained  on the  SEC's website  at  www.sec.gov or  on the  SEDAR  website 
maintained by the Canadian Securities Administrators at www.sedar.com.  Copies 
of the final prospectus supplement and the accompanying base shelf  prospectus 
relating to the  Offering may  be obtained,  when available,  upon request  by 
contacting Roth Capital Partners, LLC, 888 San Clemente Drive, Newport  Beach, 
CA 92660, (800) 678-9147, e-mail: rothecm@roth.com

This press release does not and shall  not constitute an offer to sell or  the 
solicitation of an  offer to buy  any of the  Company's securities, nor  shall 
there be any sale of the Company's securities in any state or jurisdiction  in 
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or jurisdiction.

About Aeterna Zentaris

Aeterna Zentaris is  an oncology  and endocrinology  drug development  company 
currently investigating  treatments  for  various  unmet  medical  needs.  The 
Company's pipeline encompasses  compounds at all  stages of development,  from 
drug discovery through to marketed products. For more information please visit
www.aezsinc.com.

Forward-Looking Statements

This press release  contains forward-looking statements  made pursuant to  the 
safe harbour provisions of the U.S. Securities Litigation Reform Act of  1995. 
Forward-looking statements involve known  and unknown risks and  uncertainties 
that could cause the Company's actual results to differ materially from  those 
in the forward-looking statements. Such risks and uncertainties include, among
others, the availability of  funds and resources to  pursue R&D projects,  the 
successful and timely completion of clinical studies, the risk that safety and
efficacy data from any of  our Phase 3 trials may  not coincide with the  data 
analyses from previously reported Phase 1 and/or Phase 2 clinical trials,  the 
ability of the  Company to  take advantage  of business  opportunities in  the 
pharmaceutical industry, uncertainties related  to the regulatory process  and 
general changes in economic conditions. Investors should consult the Company's
quarterly and annual filings with the Canadian and U.S. securities commissions
for  additional   information  on   risks   and  uncertainties   relating   to 
forward-looking statements.  Investors  are cautioned  not  to rely  on  these 
forward-looking statements. The  Company does  not undertake  to update  these 
forward-looking statements.  We disclaim  any obligation  to update  any  such 
factors or to  publicly announce the  result of  any revisions to  any of  the 
forward-looking statements contained herein to reflect future results,  events 
or developments, unless required  to do so by  a governmental authority or  by 
applicable law.

SOURCE AETERNA ZENTARIS INC.

Contact:

Investor Relations
Ginette Beaudet Vallières
Investor Relations Coordinator
(418) 652-8525 ext. 265
gvallieres@aezsinc.com

Media Relations
Paul Burroughs
Director of Communications
(418) 652-8525 ext. 406
pburroughs@aezsinc.com
 
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