Attention Business Editors

Medicago grants stock options

	    QUEBEC CITY, Dec. 24 /CNW/ - Medicago Inc. ("Medicago" or the "Company")
(TSX-V: MDG), a biotechnology company focused on developing highly effective
and affordable vaccines based on proprietary manufacturing technologies and
Virus-Like Particles (VLPs), today announced that pursuant to terms and
conditions of the Company's stock option plan, it has granted 1,237,680 stock
options to employees, a consultant and directors. Employees and a consultant
were granted an aggregate of 1,012,680 options and directors were granted an
aggregate of 225,000 options. The stock options were issued at an exercise
price of $0.68, will vest in three yearly installments and are set to expire
ten years from the date of the grant.

	    About Medicago

	    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 news release includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with Medicago's business and the environment in which the business
operates. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking, including those
identified by the expressions "anticipate", "believe", "plan", "estimate",
"expect", "intend", and similar expressions to the extent they relate to
Medicago or its management. The forward-looking statements are not historical
facts, but reflect Medicago's current expectations regarding future results or
events. These forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ materially
from current expectations, including the matters discussed under "Risks
Factors and Uncertainties" in Medicago's Annual Information Form filed on
March 25, 2009 with the regulatory authorities. Medicago assumes no obligation
to update the forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking statements.

	    Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.






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	    /For further information: Medicago, Inc., Andy Sheldon, President and
CEO, (418) 658-9393; Medicago Inc., Arianna Vanin, Director, Investor
Relations, (514) 796-3993/