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PROTOX RELEASES Q1 2007 FINANCIAL RESULTS AND COMPANY HIGHLIGHTS

Vancouver, British Columbia, May 17, 2007 – ProtoxTM Therapeutics Inc. (TSX-V: PRX) announced today financial results and operating highlights for the first quarter of 2007 ended March 31, 2007.

“Protox made substantial progress during the first quarter and has set the stage for continued clinical advances in 2007 and beyond,” said Dr. Fahar Merchant, President and CEO of Protox. “The first quarter marked two significant milestones for our flagship drug candidate PRX302.  While early, the encouraging interim clinical trial results released in January support the potential for this drug as a groundbreaking treatment for prostate cancer.  In addition, the initiation of our Phase I clinical trial for the treatment of BPH has moved us a step closer towards our goal of providing a minimally invasive therapeutic option for a disease that impacts the quality of life of millions of men worldwide.”

Operating Highlights

• Encouraging interim results from the Phase I prostate cancer trial, reported on January 18, 2007, indicated that PRX302 was safe and well-tolerated with the ability to reduce PSA levels and decrease tumour burden in patients with localized recurrent prostate cancer
• Publication in the prestigious Journal of the National Cancer Institute entitled “A prostate-specific antigen-activated channel-forming toxin as therapy for prostatic disease”, supporting PRX302 as a treatment for prostatic diseases.
• A Phase I clinical trial of PRX302 for the treatment of benign prostatic hyperplasia (BPH or enlarged prostate) was initiated on March 28, 2007 at two sites, in Victoria, British Columbia and Kitchener, Ontario.

Subsequent Highlights

• Enrolled and successfully dosed the first patient in a Phase I clinical study evaluating PRX302 to treat benign prostatic hyperplasia (BPH) on April 24, 2007.

Financial Results
For the quarter ended March 31, 2007 (“Q1 2007”), Protox incurred a net loss of $1,607,102 / $0.03 per share compared to $854,824 / $0.02 per share for the quarter ended March 31, 2006 (“Q1 2006”) comparative period. The increase is primarily attributable to increased research and development (“R&D”) costs associated with expanded drug development activities and the commencement of the Company’s first two clinical trials.

R&D costs totaled $998,948 for Q1 2007 compared to $421,977 for the Q1 2006 comparative period, a 136% increase.  Q1 2006 was a period of transition from a preclinical to clinical focus ahead of commencing clinical trials. The Q1 2007 R&D cost increase reflects expanded drug development activities including the ongoing PRX302 Phase I clinical trial for prostate cancer initiated in May 2006 and preparation for the Phase I clinical trial of PRX302 to treat BPH initiated late in Q1 2007.  

General and administrative (“G&A”) costs for Q1 2007 totaled $490,577, a 10% increase from $446,842 for Q1 2006.  The G&A cost increase is attributable to higher personnel and travel costs in support of and commensurate with the growth of the Company and its business development activities.

Interest income of $93,039 was earned during Q1 2007 compared to $33,783 for Q1 2006. Higher interest rates and higher average investment balances were the contributing factors.

At the end of Q1 2007, the Company had cash resources of approximately $9.5 million to fund its operations and support its drug development and clinical trial activities. During the quarter, proceeds of $0.5 million were received from the exercise of common share purchase warrants. 

CONDENSED STATEMENT OF OPERATIONS

About Protox
Protox Therapeutics is a leader in advancing novel, targeted 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 four 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 two Phase I clinical trials using PRX302 (PORxin) for prostatic disease:  one to treat localized prostate cancer and the other to treat benign prostatic hyperplasia.

For more information contact:

James Beesley, Director of Investor Relations, Protox Therapeutics Inc.
1210-885 West Georgia Street, Vancouver, BC, Canada, V6C 3C8
Direct: 604-484-0975 / Fax: 604-688-0173
jbeesley@protoxtherapeutics.com / www.protoxtherapeutics.com

Michel Moore, Senior Account Executive, Investor Relations, The Equicom Group
Direct: 416-815-0700 x 241 / Fax: 416-815-0800
mmoore@equicomgroup.com / www.equicomgroup.com

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.