Patheon Announces Completion of York Mills Facility Sale

Toronto, Canada (April 17, 2008) – Patheon (TSX:PTI), a global provider of drug development and manufacturing services to the international pharmaceutical industry, today announced the completion of the sale of its York Mills facility located in Toronto, Canada for CDN$12.5 million (US$12.3 million) effective April 15, 2008.

The agreement to sell the facility for a purchase price of CDN$12.5 million (US$12.3 million) was entered into on December 31, 2007 as part of Patheon’s global network restructuring plan. Patheon is currently in the process of transferring all commercial production and development services undertaken at its York Mills facility to, primarily, its Whitby facility, with a smaller portion of activity being transferred to the Company’s Mississauga and Cincinnati facilities.  This is primarily intended to improve capacity utilization and profitability at the continuing Canadian sites.

Patheon is de-commissioning the York Mills facility and has leased back the facility for up to two years in order to facilitate this process. 

“We are pleased that we have completed another step in our global restructuring plan and are now focused on consolidating our resources at Whitby and improving our productivity in our Canadian Operations”, added Wes Wheeler, Chief Executive Officer.

ABOUT PATHEON

Patheon (TSX:PTI; www.patheon.com) is a leading global provider of drug development and manufacturing services to the international pharmaceutical industry. Patheon operates a network of 10 manufacturing and six development facilities in the United States, Canada and Europe, employing more than 4,700 people and serving a customer base of 270 pharmaceutical and biotechnology companies.

For further information: Mr. Wes Wheeler, Tel:  (905) 812-2112, Fax:  (905) 812-6705, Email: wes.wheeler@patheon.com; Mr. John Bell, Chief Financial Officer, Tel: (905) 812-6812, Fax:  (905) 812-6613, Email: john.h.bell@patheon.com; Ms. Jacqueline Le Saux, General Counsel – North America and Corporate Secretary Tel:  (905) 816-3964, Fax:  (905) 812-2705; Email: jlesaux@patheon.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements which reflect management’s expectations regarding the Company’s future growth, results of operations, performance (both operational and financial) and business prospects and opportunities. Wherever possible, words such as “plans”, “expects” or “does not expect”, “forecasts”, “anticipates” or “does not anticipate”, “believes”, “intends” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved have been used to identify these forward-looking statements. Although the forward-looking statements contained in this news release reflect management’s current assumptions based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Company cannot be certain that actual results will be consistent with these forward-looking statements. Current material assumptions relate to customer volumes, regulatory compliance and foreign exchange rates. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Company’s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the market demand for client products; credit and client concentration; the ability to identify and secure new contracts; regulatory matters, including compliance with pharmaceutical regulations; international operations risks; exposure to foreign currency risks; competition; product liability claims; intellectual property; environmental, health and safety risks; substantial financial leverage; interest rates; conditions of MOVA’s tax exemptions; proposed divestiture of the Carolina site; significant shareholders; risks associated with information systems; and supply arrangements. Although the Company has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to update or revise them to reflect new events or circumstances.

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