QUEBEC CITY, April 7 /CNW/ - Medicago Inc. (TSX-V: MDG) today announced that it has received a $500,000 payment from an undisclosed Fortune 100 Company (the "Partner"), for the attainment of an important milestone.

On February 7, 2008, Medicago entered into a second non-exclusive license agreement with the Partner for the development and commercialization of Medicago's proprietary plant-based production technology. Under terms of the agreement, Medicago was to receive an upfront payment of $1,500,000 and a payment of $500,000 upon attainment of the above mentioned milestone.

"We are very pleased to have successfully completed our first milestone under this collaboration," said Andy Sheldon President and CEO. "We continue to make significant progress in the development of our proprietary technology and look forward to additional opportunities."

About Medicago Inc.

Medicago is committed to provide highly effective and affordable vaccines based on proprietary Virus-Like Particle (VLP) and manufacturing technologies. Medicago is developing VLP vaccines to protect against H5N1 pandemic influenza, using a transient expression system which produces recombinant vaccine antigens in non-transgenic plants. This technology has potential to offer advantages of speed and cost over competitive technologies. It could deliver a vaccine for testing in about a month after the identification and reception of genetic sequences from a pandemic strain. This production time frame has the potential to allow vaccination of the population before the first wave of a pandemic strikes and to supply large volumes of vaccine antigens to the world market. Additional information about Medicago is available at www.medicago.com

Forward-Looking Statements

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.