Company History

Until recently Nexia developed and manufactured complex recombinant proteins in the milk of transgenic goats for medical and industrial applications. The Company's two lead programs were Protexia and BioSteelR.

On March 7, 2005, Nexia's, shareholders approved the sale of substantially all its operations and assets related to ProtexiaR to PharmAthene (www.pharmathene.com), a privately held biotechnology company focused on the development of biodefense therapeutics, based in Annapolis, Maryland, USA.

The transaction was completed on March 14, 2005.

Concurrently with their approval of the transaction, the shareholders of Nexia have also approved a reduction of the stated capital of the issued and outstanding common shares of Nexia which resulted in a distribution to the shareholders of $ 0.72 Canadian per share ($16.9 million) on March 23, 2005.

For additional information, please review the Management Proxy Circular at www.sedar.com. As a result of this transaction, Nexia will hold approximately 10% interest in PharmAthene.

In early January 2006 Nexia announced that the Board of Directors has completed its previously announced assessment of corporate assets. Nexia will proceed with a reorganization strategy to enhance shareholder value. The conceptual transaction structure will protect the value of the PharmAthene and BioSteel assets, and at the same time allow shareholders to participate in the oil and gas industry.