YM BIOSCIENCES' SUBSIDIARY RESOLVES PROPOSED ARBITRATION WITH ONCOSCIENCE AG

MISSISSAUGA, ON, June 29 /PRNewswire-FirstCall/ - YM BioSciences Inc. (NYSE
Amex:YMI, TSX:YM, AIM:YMBA), a life sciences product development company that
identifies and advances a diverse portfolio of promising cancer-related
products at various stages of development, today reported that YM's
subsidiary, CIMYM BioSciences Inc. and Oncoscience AG have resolved the issues
between the companies in a cooperative effort. CIMYM BioSciences has formally
notified Oncoscience that it no longer intends to submit its application to
the London Court of International Arbitration for resolution of the matters
previously in dispute.
"We are pleased that CIMYM BioSciences and Oncoscience have resolved their
differences amicably at a minimal cost to either party and that each are
committed to cooperate fully in moving nimotuzumab forward clinically with all
due deliberate speed," said David Allan, Chairman and CEO of YM BioSciences.
"The late-stage European clinical program Oncoscience is undertaking
contributes significantly to the broad program being advanced by the network
of cooperative relationships dedicated to the development of this important
cancer drug globally."
"Its unique safety profile and efficacy make nimotuzumab a very promising and
innovative treatment option with the potential to maintain a high quality of
life for patients suffering from a number of different cancer indications,"
added Ferdinand Bach, CEO of Oncoscience. "I am delighted that we may now
focus our combined resources exclusively on the contribution to the clinical
program being undertaken globally for this promising drug. Recruitment of our
Phase III trial in newly diagnosed pediatric pontine glioma has been concluded
and we anticipate that recruitment in our randomised Phase III trial in adult
glioblastoma grade IV will be completed in 2009. We are confident that data
from these trials, along with data that will come from our placebo controlled
randomised pancreatic cancer trial currently underway, in addition to data
from a well diversified clinical development program being advanced
internationally, will further strengthen and confirm the clinical value of
nimotuzumab."

About YM BioSciences

YM BioSciences Inc. is a life sciences product development company that
identifies and advances a diverse portfolio of promising cancer-related
products at various stages of development. The Company is currently developing
two late-stage products: nimotuzumab, an EGFR-targeting Affinity-Optimized
Antibody(TM), and AeroLEF(R), a proprietary, inhaled-delivery composition of
free and liposome-encapsulated fentanyl. YM has proven regulatory and clinical
trial expertise and a diversified business model designed to reduce risk while
advancing clinical products toward international approval, marketing and
commercialization.
Nimotuzumab is a humanized monoclonal antibody in development worldwide,
targeting multiple tumor types primarily in combination with radiation and
chemoradiation. It is significantly differentiated from all other currently
marketed EGFR-targeting agents due to its remarkably benign side-effect
profile. Nimotuzumab's anti-tumor activity has led to its approval for
marketing in 18 countries. In more than 4000 patients reported as having been
treated with nimotuzumab worldwide to date, no Grade IV incidents of radiation
dermatitis have been described, severe rash has not been observed and reports
of the other severe side-effects that are typical of EGFR-targeting molecules
have been rare. Nimotuzumab is licensed to YM's majority-owned subsidiary,
CIMYM BioSciences Inc., by CIMAB S.A., and was developed at the Center of
Molecular Immunology. YM is developing AeroLEF for the treatment of moderate
to severe acute pain. The product is differentiated from other approaches
using fentanyl because patients can individually control the analgesia
required for their differing intensities of pain. AeroLEF met all endpoints in
a randomized Phase II trial and is currently being prepared for late-stage
development internationally.

About Oncoscience AG

Oncoscience is a private company based in Wedel, Germany founded with the goal
developing treatments for rare diseases that are not being addressed by major
pharmaindustrial companies. Oncoscience's mission and therefore the scientific
benefit, lies in the research of rare diseases and the improvement of
therapeutic possibilities.
Oncoscience's development program for cancer patients consist of its lead drug
candidate nimotuzumab and a fusion protein that is entering the clinic this
year to undergo Phase I trials. In the translational field, a first patent was
granted from the Australian government at the end of 2008.

This press release may contain forward-looking statements, which reflect the
Company's current expectation regarding future events. These forward-looking
statements involve risks and uncertainties that may cause actual results,
events or developments to be materially different from any future results,
events or developments expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting. Certain of the assumptions made in
preparing forward-looking statements include but are not limited to the
following: that nimotuzumab will continue to demonstrate a competitive safety
profile in ongoing and future clinical trials; that AeroLEF(R) will continue
to generate positive efficacy and safety data in future clinical trials; and
that YM and its various partners will complete their respective clinical
trials within the timelines communicated in this release. We undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

SOURCE YM BioSciences Inc.

James Smith, the Equicom Group Inc., Tel. (416) 815-0700 x 229, Email:
jsmith@equicomgroup.com; Thomas Fechtner, the Trout Group LLC, Tel. (646)
378-2931, Email: tfechtner@troutgroup.com; Nominated Adviser, Canaccord Adams
Limited, Ryan Gaffney, Tel. +44 (0)20 7050 6500