OASMIA: OASMIA EXPANDS LICENSE AGREEMENT FOR PACLICAL® VET TO INCLUDE EUROPEAN-WIDE RIGHTS

(NGM:OASM A)

Oasmia Pharmaceutical has expanded the agreement with Orion Corporation,
Finland. Orion's exclusive marketing and sales rights for Paclical® Vet now
includes all European countries. Altogether the agreement now amounts to about
10 million Euro. 

Orion will pay an additional 8 million Euro consisting of a 3.25 million
signing-fee and milestone payments based on the development and registration of
the product. Oasmia will also receive considerable royalties on all sales in
the region. The previous agreement only concerned the Nordic countries and a
few countries in Europe with a total of 2 million Euro. 

- After thorough consideration, we have decided that Orion Animal Health is the
ideal partner for Oasmia and Paclical® Vet. We share the same views on
development, potential, market and vision for the product. Orion has a strong
confidence in our platform and product portfolio. This agreement enables us to
focus on the development of our other Animal Health pharmaceuticals and Orion
to focus on the market introduction, says Julian Aleksov, CEO of Oasmia. 

The first Phase III study on Paclical® Vet has just been completed and the
interim results have exceeded all expectations. A second international Phase
III study is initiated and will constitute the basis for the US and world-wide
registration of Paclical® Vet. When registered, Paclical® Vet will be the first
cytostatic in the world registered for veterinary medicine. 

The market
Today, there are 140 million dogs only in the EU and the US. The market,
calculated as the number of dogs over six years old in the EU and the US of
which 40 % will suffer from cancer, totals 1.5 billion USD. Europe accounts for
about 35 % of the total world market. 

About mastocytoma (Skin cancer) 
Mastocytoma is a malignant form of cancer, originating from the mastocytom
cells of the skin. The disease is graded I - III depending on the seriousness
of the disease. This form of cancer accounts for approximately 20 % of all
malignant skin tumours in dogs. Today, the most common form of treatment is
surgery, although chemotherapy developed for human use is also used.
Unfortunately, surgery as a treatment of grade III tumours is ineffective, and
euthanasia is often the only remaining alternative. 

About Paclical® Vet 
Paclical® Vet is a water soluble, solvent free nanoparticle formulation, based
on the well-known cytotoxic substance paclitaxel. It´s unique properties are
based on Oasmia's nanotechnological formulation and micellar model XR-17, which
is protected by international patents. The new Oasmia platform means that
paclitaxel is water-soluble, that no premedication is necessary, infusion times
can be shortened and infusion procedure can be made more effective. 







About Oasmia 
Oasmia Pharmaceutical AB develops second and third generation cancer drugs
based on nanotechnology for human and veterinary use. The broad portfolio is
focused on oncology and contains several promising products in clinical and
pre-clinical phase. Oasmia cooperates with leading universities and other
biotech companies to discover and optimize substances with a favourable safety
profile and better efficacy. The company was founded in 1998 and is based in 
Uppsala, Sweden.

About Orion 
Orion is a European pharmaceutical and diagnostics company which emphasises the
development of innovative medicinal treatments and diagnostic tests for global
markets. Orion develops, manufactures and markets pharmaceuticals for humans
and animals, active pharmaceutical ingredients as well as diagnostic tests.
Orion's clientele consists mainly of healthcare service providers and
professionals. The Group's net sales in 2007 were EUR 683.6 million and in the
end of 2007 there were 3 176 employees working for the Group. Orion's stocks
are listed in OMX Nordic Exchange Helsinki. 

More information is available at www.ngm.se or www.oasmia.com 
For further information please contact: info@oasmia.com or call: +46 (0) 18 50
54 40