QUEBEC CITY, April 29 /CNW/ - Medicago Inc. ("Medicago" or the "Company") (TSX-V: MDG) announced today that Investissement Quebec has agreed to a moratorium on the payment of approximately $643,877 of interest payable from January 1, 2008 to December 31, 2008 on a loan made by Investissement Quebec under the "Bio-Levier". In consideration for this, Medicago will issue to Investissement Quebec a total of 643,877 warrants to purchase an equivalent number of common shares at a price of $0.70 per share for a period of three years.

"We would like to thank Investissement Quebec for working alongside us to further the development of our company," said Andy Sheldon, President and CEO of Medicago.