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

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

PR Newswire

QUÉBEC CITY, Oct. 17, 2012

QUÉBEC CITY, Oct. 17, 2012 /PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ: AEZS)
(TSX:AEZ) (the"Company") today announced the closing of its previously
announced public offering of 6.6million units (the "Offering") generating net
proceeds of US$15.2million, 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 is exercisable for a period of five years at an
exercise price of US$3.45 per share. Roth Capital Partners, LLC, acted as the
sole manager  for the Offering.

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.

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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