For Immediate Release

SEMBIOSYS COMPLETES INITIAL PUBLIC OFFERING

Shares listed on TSX under the symbol “SBS”

This release is intended for distribution in Canada only and is not to be distributed to United States newswire services or disseminated in the United States.

December 6, 2004

CALGARY Alberta -- SemBioSys Genetics Inc. (TSX), a biotechnology company developing a broad pipeline of protein-based pharmaceutical and non-pharmaceutical products, today announced that it has closed its initial public offering, consisting of a new issue of 3,500,000 units priced at $5.00 per unit, for gross proceeds of $17,500,000. SemBioSys common shares will trade on the Toronto Stock Exchange under the symbol “SBS” and style='font-variant:normal !important'> its warrants will trade under the symbol “SBS.WT”.

"SemBioSys oilbody-oleosin technology addresses major commercialization challenges facing protein-based therapeutics. This capital infusion will allow us to advance our two lead pharmaceutical compounds targeting chronic diabetes and cardiovascular disease towards clinical trials,” said Andrew Baum, President and CEO of SemBioSys. “At the same time our non-pharmaceutical pipeline, which includes multiple funded partnerships and near-term revenue opportunities, will support our pharmaceutical efforts and provide validation of the commercial potential of our technology platform.”

Each unit consists of one common share and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of SemBioSys at a price of $6.25 for a period of two years. A syndicate of investment dealers co-led by Orion Securities Inc. and Dlouhy Merchant Group Inc., and including First Associates and Raymond James Ltd., participated in the financing.

SemBioSys has granted the underwriters an option,exercisable for a period of 45 days from the closing date, to purchase an additional 525,000 common shares at $4.99 per common share and 262,500 share purchase warrants at $0.01 per share purchase warrant, to cover over-allotments and for market stabilization purposes. If the over-allotment is exercised in full, total gross proceeds of the offering will be approximately $20,125,000.

These securities have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless an applicable exemption from registration requirements is available.

About SemBioSys Genetics Inc. (www.sembiosys.com)

Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company focused on the development, commercialization and production of protein-based pharmaceuticals and non-pharmaceutical products based on its plant genetic engineering skills and proprietary oilbodyoleosin technology platform - the Stratosome™ Biologics System. Its two lead products are insulin and a developmental cardiovascular drug called Apo AI. It also has a series of non-pharmaceutical products addressing animal health, industrial and human topical markets. In the past 12 months, SemBioSys has executed five funded partnership agreements with Syngenta Participations AG, Martek Biosciences Corporation, Lonza, Inc., Dow AgroSciences LLC and Arcadia, Inc.

Print this release.