MONTREAL, QUEBEC -- (MARKET WIRE) -- 06/06/2006 -- Velan Inc. (the "Corporation")(TSX: VLN) announced today that Toronto Stock Exchange has approved its 2006 Normal Course Issuer Bid, authorizing the Corporation to purchase up to 336,620 of the 6,707,401 Subordinate Voting Shares outstanding as at May 31, 2006 (representing 10% of the public float of 3,366,200 Subordinate Voting Shares as at that date), as an appropriate and desirable use of the Corporation's available funds. By making such purchases, the number of Subordinate Voting Shares in circulation will be reduced and the proportionate share interest of all remaining holders of Subordinate Voting Shares will be increased on a pro rata basis.

The Corporation may purchase the Subordinate Voting Shares on the open market through the facilities of Toronto Stock Exchange from time to time over the course of twelve months commencing June 8, 2006 and ending on June 7, 2007. The shares purchased in the 2006 Normal Course Issuer Bid will be cancelled.

During the past 12 months, Velan has not purchased any Subordinate Voting Shares under a normal course issuer bid.

T.C. Velan, President