/THIS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER THE UNITED STATES WIRE SERVICES/

QUEBEC CITY, Oct. 21 /CNW/ - Medicago Inc. (TSX: MDG), a biotechnology company focused on developing highly effective and affordable vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), announced today that the Toronto Stock Exchange ("TSX") has conditionally approved a reduction of the exercise price of warrants issued as part of the units offering by way of prospectus completed on November 27, 2009 (the "November 2009 Warrants") from $1.00 to $0.43 (which represents the volume weighted average trading price of Medicago common shares over the last five days), beginning November 4, 2010.

To the extent that holders of the November 2009 Warrants take advantage of this opportunity, the proceeds that may result from the exercise of any such warrants will provide Medicago with additional capital to continue to execute its current business plan, namely the continued clinical development of the Company's plant manufactured Influenza VLP vaccines.

The November 2009 Warrants, which expire at 5:00 p.m. ET on November 26, 2010, are governed by a warrant indenture entered into between Medicago and Computershare Trust Company of Canada ("Computershare") dated November 27, 2009 (the "Warrant Indenture") available on SEDAR (www.sedar.com). Medicago has entered into a supplemental indenture agreement with Computershare to provide for the reduction of the exercise price, a copy of which will be filed on SEDAR. All other material terms of the Warrant Indenture will remain unchanged.

Non-registered holders of the November 2009 Warrants, whose warrants are registered in the name of a brokerage firm, bank or trust company or other intermediary through which they purchased the November 2009 Warrants should contact their intermediary holding those November 2009 Warrants for instructions on how to exercise their warrants in accordance with the procedure set forth in the Warrant Indenture.

Pursuant to the rules of the TSX, 53,888 November 2009 Warrants held by insiders of Medicago will not be subject to the reduced price and will remain at the original exercise price of $1.00.

Outstanding share data

On October 20, 2010, 45,000,000 common share purchase warrants issued in October 2008 expired without being exercised. As at October 20, 2010, there were 136,912,102 common shares issued and outstanding, 7,105,047 stock options outstanding, 3,796,982 compensation options and 26,209,586 warrants outstanding, including those 8,050,000 November 2009 Warrants which are set to expire on November 26, 2010 if not exercised.

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 24, 2010 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.

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