Hemosol Corporate Announcement TORONTO, July 9 /PRNewswire-FirstCall/ -- Hemosol Corp. (TSX: HML, NASDAQ: HMSL) - Pursuant to Nasdaq Marketplace Rule 4350(b)(1)(B) which requires an issuer that receives an audit opinion that contains a going concern qualification to make a public announcement disclosing the receipt of such qualification, Hemosol Corp. today announced that the auditors' report on the financial statements of Hemosol Corp's predecessor, Hemosol Inc., contained in Hemosol Corp.'s Annual Report on Form 20-F for the year ended December 31, 2003 (filed with the U.S. Securities and Exchange Commission on June 30, 2004) contained a going concern qualification. On April 30, 2004, Hemosol Corp. became the successor to LPBP Inc. pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934 upon completion of a Plan of Arrangement under Section 182 of the Business Corporations Act (Ontario) involving Hemosol Inc. (which was subsequently renamed LPBP Inc. after the Arrangement became effective), its security holders and MDS Inc. The Arrangement provided a $16 million cash infusion into Hemosol Corp.'s blood product business. As noted in the Annual Report, this cash infusion will enable Hemosol Corp. to continue its initiatives for its blood products business, including the further development of HEMOLINK and other product candidates. These funds will also permit Hemosol Corp. to advance the implementation of its strategic alliance with ProMetic, exclusive of milestone payments due under the license agreement. Hemosol Corp. believes that, following the proactive steps taken in April 2003 to reduce cash burn, its current cash resources, together with the proceeds from the Arrangement and the Special Warrant Offering, will be sufficient to fund its anticipated operating and capital expenditures through the second quarter of 2005, at which point it will require additional financing. About Hemosol Hemosol is a biopharmaceutical company focused on the development and manufacturing of biologics, particularly blood-related proteins. Hemosol is leveraging its expertise in manufacturing blood proteins and its state-of-the-art Meadowpine manufacturing facility to seek additional strategic growth opportunities. Hemosol has a broad range of novel therapeutic products in development, including HEMOLINK(TM) (hemoglobin raffimer), an oxygen therapeutic designed to rapidly and safely improve oxygen delivery via the circulatory system. Hemosol is also developing next generation oxygen therapeutics, a hemoglobin-based drug delivery platform to treat diseases such as hepatitis C and liver cancers, and a cell therapy program initially directed to the treatment of cancer. For more information visit Hemosol's website at http://www.hemosol.com/. Hemosol's common shares are listed on the NASDAQ Stock Market under the trading symbol "HMSL" and on the Toronto Stock Exchange under the trading symbol "HML". Certain statements concerning Hemosol's future prospects are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities legislation. There can be no assurances that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include, but are not limited to: Hemosol's ability to obtain regulatory approvals for its products; Hemosol's ability to successfully complete clinical trials for its products and enter into satisfactory arrangements for the supply of materials used in its manufacturing operations and the sale of resulting products to customers; technical, manufacturing or distribution issues; the competitive environment for Hemosol's products; the degree of market penetration of Hemosol's products; Hemosol's ability to obtain sufficient financing to complete clinical development of its products; and other factors set forth in filings with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of Hemosol with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Hemosol makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. DATASOURCE: Hemosol Corp. CONTACT: Jason Hogan, Investor & Media Relations, (416) 361-1331, (800) 789-3419, (416) 815-0080 fax, , http://www.hemosol.com/; Archived images on this organization are available through CNW E-Pix at http://www.newswire.ca/. Images are free to members of The Canadian Press. To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on reports@cnw.

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