HELIX REPORTS NET LOSS OF $7,674,000 FOR FISCAL 2007.

Helix BioPharma Corp. (TSX, FSE: "HBP") Aurora, Ont., has announced financial results for the year ended July 31, 2007. During the 2007 fiscal year, the company continued to make progress with its clinical (Topical Interferon Alpha-2b) and pre-clinical (L-DOS47) development programs. The following are selected highlights during the 2007 fiscal year and subsequent to year-end.

HIGHLIGHTS

- Topical Interferon Alpha-2b

- Announced positive Phase II clinical results with Topical Interferon Alpha-2b in patients with HPV-induced low-grade squamous intraepithelial lesions ("LSIL")

- Initiated enrollment in Phase II clinical trial with Topical Interferon Alpha-2b in patients with HPV-induced ano-genital warts

- L-DOS47

- Awarded two U.S. patents for DOS47, a broad anti-cancer therapeutic candidate

- Presented L-DOS47 findings at the fourth international conference on "Tumour Microenvironment" in Florence, Italy

- Presented L-DOS47 findings at Keystone Symposia meeting, "Antibodies as Drugs: From Basic Biology to Clinic"

- Signed L-DOS47 manufacturing agreement with BioVectra DCL

- Financing

- Completed a private placement financing on October 11, 2006 for gross proceeds of $7,044,500.

- Other

- Shareholders approved management proposals and elected management's slate of directors at the 2007 annual meeting of shareholders, following a proxy dispute

- Announced University of Arizona Professor, Kenneth D. Hatch,M.D., as medical advisor

- Mr. Jerome F. McElroy resigned as Chairman and Director of the company

- Introduced a new company logo as part of our ongoing efforts to renew our market image

For the fiscal year ended 2007, the company recorded a net loss of $7,674,000, which represents an increase of $735,000 when compared to fiscal 2006. In fiscal 2006, the company recorded a net loss of $6,939,000 and is lower by $686,000 when compared to fiscal 2005. The net loss per common share for the fiscal year ended 2007 was $0.22 and remained unchanged when compared to fiscal 2006. Fiscal 2006's net loss per share was lower by $0.06 when compared to the loss per common share for fiscal 2005.

Product revenue, license fees and royalties as well as research and development contract revenue all contributed to the decrease in revenue in fiscal 2007 when compared to fiscal 2006. In fiscal 2006 all but license fees and royalties contributed to higher overall revenues when compared to fiscal 2005.

The Canadian dollar continued to strengthen over the last three fiscal years resulting in lower product cost and a continued improvement in product margins.

Overall expenses in fiscal 2007, 2006 and 2005 remained relatively flat, yet during these periods, research and development and operating, general and administrative expenditures continued to increase. Offsetting these increasing costs were lower amortization expense of intangible and capital assets, increasing interest income, and either lower stock-based compensation expenses or lower one time write downs of intangible assets.

Total revenues in fiscal 2007 were $3,424,000 and represent a decrease of $541,000 or 13.6% when compared to total revenues in fiscal 2006 of $3,965,000. Product revenue, license fees and royalties as well as research and development contract revenue all contributed to the decrease in revenue in fiscal 2007 when compared to fiscal 2006. In fiscal 2006, total revenues were higher by $233,000 or 6.2% when compared to fiscal 2005. In fiscal 2006 when compared to fiscal 2005, all but license fees and royalties contributed to higher overall revenues.

Product revenue in fiscal 2007 totaled $2,764,000 and represents a decrease of $248,000 or 8.2% when compared to product revenue in fiscal 2006 of $3,012,000. Higher product sales of Klean-Prep(TM) were more than offset by lower sales of Orthovisc(R) in Canada. Orthovisc(R) revenue was steadily increasing and peaked in the third quarter of 2006. The current level of Orthovisc(R) revenue now appears relatively stable just above 2005 levels. In fiscal 2006, product revenue was higher by $556,000 or 22.6% when compared to fiscal 2005. The increase is mainly the result of higher Orthovisc(R) sales in Canada.

License fees and royalties in fiscal 2007 totaled $512,000 and represent a decrease of $261,000 or 33.8% when compared to fiscal 2006. The decrease is mainly the result of lower milestone revenues from the sub-licensing arrangement of the company's biochip technology to Lumera. In fiscal 2006, license fees and royalties were lower by $461,000 or 37.4% when compared to fiscal 2005 and reflect the lower royalty revenues from the royalty rate reduction for Klean-Prep(TM) sales in Europe. The royalty rate from Helsinn-Birex was reduced in half effective January 1, 2005 with fiscal 2006 reflecting the reduced rate for the entire fiscal period. Research and development contract revenue in fiscal 2007 totaled $148,000 and represents a decrease of $32,000 or 17.8% when compared to fiscal 2006. In fiscal 2006, research and development contract revenue was higher by $138,000 when compared to fiscal 2005. The total research and development contract revenue over the last three years represents an agreement entered into by the company with Apotex and reflects the timing of milestone payments.

Research and development expenditures in fiscal 2007 totaled $4,116,000 and represent an increase of $748,000 or 22.2% when compared to fiscal 2006. The increase is mainly due to advancing preclinical costs related to L-DOS47. Research and development expenditures related to Topical Interferon Alpha-2b remained relatively flat, with lower expenditures resulting from the conclusion and reporting of the phase II German study results in April 2007 being offset by higher expenditures from the December 2006 commencement of patient enrollment in the new phase II trial in Sweden. In fiscal 2006, research and development expenditures were higher by $385,000 or 12.9% when compared to fiscal 2005. The ongoing costs of conducting the phase II German study and the then increased scientific and patent activity surrounding L-DOS47 are reflective of the increase in research and development expenditures for the period. Operating, general and administration expenses in fiscal 2007 totaled $4,418,000 and represent an increase of $696,000 or 18.7% when compared to fiscal 2006. A shareholder proxy dispute significantly increased the cost related to the company's annual shareholder meeting held on January 23, 2007 and represents the bulk of the increase in operating, general and administration expenses. In addition, higher D&O insurance premiums, wages and other consulting services were partially offset by lower marketing promotional costs and sales commissions. In fiscal 2006, operating, general and administration expenses were higher by $142,000 or 4.0% when compared to fiscal 2005. The increase is mainly attributable to higher employee wages, agent commissions and insurance which were partially offset by lower consulting, legal and audit fees.

Amortization of intangible assets in fiscal 2007 totaled $159,000 and represents a decrease of $435,000 when compared to fiscal 2006. In fiscal 2006, amortization of intangible assets was lower by $650,000 when compared to fiscal 2005. A certain intangible asset was fully amortized in fiscal 2006, resulting in the lower amortization expense both in the fiscal year and on a go forward basis. Intangible assets are amortized on a straight line basis.

Amortization of capital assets in fiscal 2007, 2006 and 2005 decreased marginally on a year over year basis and is mainly the result of lower capital asset purchases over the three fiscal years. Stock-based compensation expense in fiscal 2007 totaled $47,000 and represents a decrease of $1,663,000 when compared to fiscal 2006. The company has not issued any stock options in fiscal 2007 and the stock-based compensation expense during the year represents the ongoing amortization of compensation costs of stock options granted on June 30, 2005, over their vesting period. The decrease represents the fair value of the 931,000 options issued by the company in fiscal 2006. In fiscal 2006, stock-based compensation expense was higher by $240,000 or 16.3% when compared to fiscal 2005. The company issued 1,151,500 stock options in fiscal 2005 with a fair value per stock option lower than the stock options issued in fiscal 2006.

Interest income totaled $496,000 in fiscal 2007, $270,000 in 2006 and $137,000 in 2005. The stepped increase on a year over year basis is mainly the result of higher on hand cash balances and interest rates over the three fiscal years.

The company realized a foreign exchange gain of $9,000 in fiscal 2007, which compares favorably to the foreign exchange losses realized in the 2006 and 2005 fiscal years, which totaled $16,000 and $78,000 respectively. The Canadian dollar appreciation against the US dollar over the past three years reversed the foreign exchange losses of previous years which resulted from the net assets of the company's integrated foreign operation in Europe. Impairment of intangible assets totaled $1,332,000 in fiscal 2007, nil in 2006 and $428,000 in 2005. The company believes future cash flows may not exceed the carrying value of its biochip technology patent and in fiscal 2007 recorded an impairment of its biochip technology. In fiscal 2005, the company exercised its right to terminate a research collaboration program for prostate cancer resulting in an impairment of $428,000.