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                                                                   PRESS RELEASE
                                                           FOR IMMEDIATE RELEASE


                     AEterna Laboratories reports filing of
                        Short Form Preliminary Prospectus

   THE SECURITIES OFFERED UNDER THIS SHORT FORM PROSPECTUS MAY NOT, SUBJECT TO
   CERTAIN EXEMPTIONS FROM REGISTRATION, BE OFFERED OR SOLD WITHIN THE UNITED
                           STATES OR TO U.S. PERSONS.

QUEBEC CITY, QUEBEC, AUGUST 28, 2001 - AEterna Laboratories Inc. (TSE: AEL,
NASDAQ: AELA) announced today that it has filed with the securities commissions
and other securities regulatory authorities in each of the provinces of Canada,
a short form preliminary prospectus with respect to the sale of subordinate
voting shares of AEterna. These shares are eligible for the Quebec Stock Savings
Plan in accordance with the provisions of the Taxation Act (Quebec). The
offering is being made through a syndicate of underwriters led by National Bank
Financial Inc.

The Company intends to use net proceeds of this offering to further fund the
clinical development program of Neovastat, for additional research and
development efforts, and other general corporate purposes, including working
capital.

ABOUT AETERNA

AEterna Laboratories Inc. is a leading Canadian biopharmaceutical corporation
focused on the development of new therapeutics for unmet medical needs,
principally cancer. AEterna's lead compound, Neovastat/AE-941, is currently
being used in two Phase III pivotal clinical trials for the treatment of lung
and kidney cancer as well as in a Phase II pivotal trial for the treatment of
multiple myeloma.

AEterna is listed on the Toronto Stock Exchange (AEL) and on Nasdaq (AELA).

AEterna's news releases and additional information are available on its Web site
at www.aeterna.com.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements, which are made pursuant
to the safe harbor provisions of the U.S. Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties which 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 ability of the Company to take
advantage of the business opportunities in the pharmaceutical industry,
uncertainties related to the regulatory process and general changes in
economic conditions. Investors should consult the Company's ongoing
quarterly and annual filings with the Canadian and U.S. securities
commissions for additional information on risks and uncertainties relating to
the 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.



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Information:
Paul Burroughs
Director of Communications
AEterna Laboratories Inc.
Tel.: (418) 652-8525
Fax: (418) 577-7700
E-mail: paul.burroughs@aeterna.com