ATTENTION BUSINESS/FINANCIAL/HEALTH EDITORS

TICKER: PBP (TSX)

EMBARGOED UNTIL FRIDAY, JANUARY 13, 8:00 AM ET

PROCYON TO RECEIVE $1 MILLION IN CONTRIBUTION FROM NRC-IRAP

FOR ITS HIV/AIDS STUDY

Montreal, January 13, 2006 – Procyon Biopharma Inc. (TSX:PBP), a biotechnology company developing innovative therapeutics in the fields of cancer and HIV/AIDS, announced today that it has entered into a contribution agreement with National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) under which the Company will receive a contribution of $980,000 for the clinical development of its lead protease inhibitor, PPL-100, for the treatment of drug-resistant HIV.

As previously announced on December 8, 2005, Procyon received regulatory approval from the Therapeutic Products Directorate of Health Canada to initiate the first-in-man Phase I clinical trial for its HIV protease inhibitor PPL-100.

“As planned, we are moving ahead in the clinical development of PPL-100, our promising drug candidate for the treatment of drug resistant HIV”, said Hans J. Mäder, president and chief executive officer of Procyon Biopharma. “We are delighted by the award that NRC has bestowed upon us for this exciting project”, he added.

The repayable contribution agreement between NRC-IRAP and Procyon Biopharma comes into effect January 2, 2006, and provides for a maximum contribution of $980,000 for the early clinical development of PPL-100, a novel protease inhibitor for the treatment of drug resistant HIV. Starting in January 2009, the contribution is repayable based on revenues generated by Procyon.

ABOUT PPL-100

PPL-100, is a phosphorylated Pro-drug of Procyon’s PL-100 protease inhibitor. PL-100 is the active antiviral agent that is potent, specific and non-cytotoxic with a high genetic barrier and favorable cross-resistance profile in drug and multi-drug resistant strains of HIV-1. PL-100 is active against several HIV-1 strains specifically selected for key mutations that render these strains resistant to currently marketed protease inhibitors.

ABOUT THE NRC-IRAP PROGRAM

The National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) provides a range of both technical and business oriented advisory services along with potential financial support to growth-oriented Canadian small and medium-sized enterprises. The program is delivered by an extensive integrated network of 260 professionals in 100 communities across the country. Working directly with these clients, NRC-IRAP supports innovative research and development and commercialization of new products and services.

Recognized globally for research and innovation, NRC is a leader in the development of an innovative, knowledge-based economy for Canada through science and technology.

ABOUT PROCYON BIOPHARMA INC.

Procyon Biopharma Inc. is a biotechnology company actively engaged in the discovery and development of innovative therapeutics in the fields of cancer and HIV/AIDS. The Company leverages its strengths in research and clinical development, bringing products through late-stage clinical trials and then evaluating the best options for further development, such as co-development and licensing. Procyon's pipeline includes: PCK3145, a non-toxic peptide soon to enter a Phase II North American trial for the treatment of advanced metastatic prostate cancer; TVT-Dox, a tumor vasculature targeting technology for the treatment of solid tumors for which an IND filing is expected within 12 months; and PPL-100, a protease inhibitor for the treatment of drug-resistant HIV/AIDS which is at the clinical stage. Headquartered in Montreal, Procyon shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol PBP. For more information, visit www.procyonbiopharma.com.

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This release contains forward-looking statements that reflect the company’s current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company’s filings.

INFORMATION:

Procyon Biopharma Inc.

Julie M. Thibodeau

Director, Communications

jthibodeau@procyonbiopharma.com ir@procyonbiopharma.com

Tel.: (514) 685 2000 ext 118

www.procyonbiopharma.com