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PROTOX ANNOUNCES PRIVATE PLACEMENT

Vancouver, British Columbia, October 25, 2006 – Vancouver, British Columbia, October 25, 2006 – ProtoxTM Therapeutics Inc. (TSX-V:PRX) announced today that it intends to raise $8 million to $10 million (CDN) through a private placement of Units at $0.50 per Unit. The private placement will be sold through Jennings Capital Inc. and Canaccord Capital Corporation as agents.

Each Unit will comprise one common share of Protox and one half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of Protox within 24 months of the date of closing at a price of $0.65 per share.

The closing of this private placement is subject to all necessary regulatory and stock exchange approvals. Protox intends to use the net proceeds principally to finance the Company’s clinical activities for PRX321 and PRX302, as well as research and development and for general working capital purposes.

About Protox
Protox Therapeutics is a product-focused clinical-stage company and a leader in advancing novel, targeted protein toxin therapeutics for treatment of cancer and other proliferative diseases. The company is actively developing two distinct but complementary platforms, INxin™ and PORxin™, and currently has three clinical programs in development. A Phase IIa clinical trial into the use of PRX321 (INxin) for the treatment of primary brain cancer has been completed and the drug has received Fast Track Designation and Orphan Drug Status from the US FDA. In addition, a Phase I trial has been completed for PRX321 to treat patients with renal cell carcinoma and non-small cell lung cancer.  Patient enrolment is underway for a Phase I clinical study into the use of PRX302 (PORxin) to treat localized prostate cancer.  A second Phase I clinical trial will commence early next year for PRX302 to treat benign prostatic hyperplasia.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Protox’ current beliefs as well as assumptions made by and information currently available to Protox and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Due to risks and uncertainties, including the risks and uncertainties identified by Protox in its public securities filings; actual events may differ materially from current expectations. Protox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information visit our website at www.protoxtherapeutics.com, or contact:

Anthony Boone
Director, Investor Relations and Corporate Communications
Protox Therapeutics
604-688-4369
aboone@protoxtherapeutics.com

Michael Moore
Investor Relations
The Equicom Group
416-815-0700 x 241
mmoore@equicomgroup.com