News release via Canada NewsWire, Toronto 416-863-9350

    Attention Business Editors:
    Lorus Therapeutics announces reorganization resulting in approximately
    $7,800,000 of non-dilutive financing

    TORONTO, May 1 /CNW/ - Lorus Therapeutics Inc. ("Lorus" or the "Company")
(TSX: LOR; AMEX: LRP), a biopharmaceutical company specializing in the
research and development of pharmaceutical products and technologies for the
management of cancer, today announced that it has signed an agreement with
6707157 Canada Inc. ("Investor") and an affiliate thereof to recapitalize and
reorganize Lorus' business which, if completed, will result in the addition of
approximately $7.8 million in non-dilutive financing for the Company. If the
transaction is completed, the funds will be used to further advance the
Company's product pipeline without diluting the equity interest of its
shareholders.
    Under the terms of the agreement, Lorus will transfer all of its assets
and liabilities and all of the shares of its subsidiaries held by it to a new
company ("Newco"). Current securityholders in Lorus will exchange their
securities in Lorus for equivalent securities in Newco (the "Exchange") and
the board of directors and management of Lorus will continue as the board of
directors and management of Newco. Newco will change its name to Lorus
Therapeutics Inc. and apply for a substitutional listing of the common shares
of Newco on both the Toronto Stock Exchange (TSX) and the American Stock
Exchange (AMEX). Following the transaction, Newco will continue to carry on
the business carried on by Lorus but will have the benefit of the non-dilutive
financing.
    In connection with the transaction and after the Exchange, the share
capital of Lorus will be reorganized into voting common shares and non-voting
common shares and the Investor will acquire from Newco and the Selling
Shareholders (as defined below) approximately 41% of the voting common shares
and all of the non-voting common shares by making a cash payment to Newco and
the Selling Shareholders equal to approximately $8.5 million on closing of the
transaction less an escrowed amount of $600,000, subject to certain
post-closing adjustments.
    In addition to the exchange of securities described above, shareholders
who are not residents of the United States will receive voting common shares
of Lorus and shareholders who are residents of the United States will receive
a nominal cash payment instead of voting common shares. As well, as a
condition of the agreement, High Tech Beteilingungen GmbH & Co. KG and certain
other shareholders of Lorus (the "Selling Shareholders"), representing
approximately 24% of Lorus' issued and outstanding share capital, have agreed
to vote in favour of the transaction and to sell to the Investor the voting
common shares to be received under the agreement at the same price per share
as will be paid to shareholders who are residents of the United States. The
directors and officers of Lorus who are security holders have expressed their
intention to vote in favour of the transaction.
    Current Lorus shareholders, other than residents of the United States and
the Selling Shareholders, will receive approximately 59% of the Lorus voting
common shares representing, upon completion of the transaction, an economic
equity interest of approximately 0.5% of Lorus in addition to their continued
equity interest in Newco.
    The restructuring will be completed by way of a plan of arrangement and
is subject to approval by the Ontario Superior Court of Justice and Lorus'
securityholders in accordance with applicable laws. The transaction is also
subject to regulatory approval, including approval of the TSX and AMEX.
    Also as a condition of the transaction, the holder of the secured
convertible debentures has agreed to vote in favour of the transaction. The
Company has agreed to repurchase such holder's outstanding three million
common share purchase warrants at a purchase price of $252,000.
    "We are delighted to have entered into these arrangements," commented Dr.
Aiping Young, President and CEO of Lorus. "If approved by the securityholders
we believe this arrangement will provide Lorus with a significant increase in
liquidity without diluting existing securityholders. The additional funds will
lessen our dependence on the capital markets and will allow us to accelerate
the clinical development of our lead compounds and enhance the development of
our drug pipelines. This transaction will not affect Lorus' current
shareholder equity interests, or our corporate focus except in a positive way
through the additional financing."

    About Lorus
    Lorus is a biopharmaceutical company focused on the research and
development of novel therapeutics in cancer. Lorus' goal is to capitalize on
its research, preclinical, clinical and regulatory expertise by developing new
drug candidates that can be used, either alone, or in combination with other
drugs, to successfully manage cancer. Through its own discovery efforts and an
acquisition and in-licensing program, Lorus is building a portfolio of
promising anticancer drugs. Lorus has several product candidates in multiple
Phase II clinical trials and has completed one Phase II and one Phase III
clinical trial. Lorus Therapeutics Inc. is listed on the Toronto Stock
Exchange under the symbol LOR, and on the American Stock Exchange under the
symbol LRP.

    Forward looking statements
    This press release contains forward-looking statements within the meaning
of Canadian and U.S. securities laws. Such statements include, but are not
limited to, statements relating to: financings and corporate reorganizations,
the establishment of corporate alliances, the Company's plans, objectives,
expectations and intentions and other statements including words such as
"continue", "expect", "intend", "will", "should", "would", "may", and other
similar expressions. Such statements reflect our current views with respect to
future events and are subject to risks and uncertainties and are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by us are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. Many
factors could cause our actual results, performance, achievements or the
transactions described in this press release to be materially different from
any future results, performance, achievements transactions described in this
press release, if at all, that may be expressed or implied by such
forward-looking statements, including, among others: the progress of
negotiations; our ability to obtain regulatory, securityholder and other
approvals; our ability to obtain the capital required for research and
operations; the inherent risks in early stage drug development including
demonstrating efficacy; development time/cost and the regulatory approval
process; the progress of our clinical trials; our ability to find and enter
into agreements with potential partners; our ability to attract and retain key
personnel; changing market conditions; and other risks detailed from
time-to-time in our ongoing quarterly filings, annual information forms,
annual reports and annual filings with Canadian securities regulators and the
United States Securities and Exchange Commission.
    Should one or more of these risks or uncertainties materialize, or should
the assumptions set out in the section entitled "Risk Factors" in our filings
with Canadian securities regulators and the United States Securities and
Exchange Commission underlying those forward-looking statements prove
incorrect, actual results may vary materially from those described herein.
These forward-looking statements are made as of the date of this press release
and we do not intend, and do not assume any obligation, to update these
forward-looking statements, except as required by law. We cannot assure you
that such statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such statements.
Investors are cautioned that forward-looking statements are not guarantees of
future performance and accordingly investors are cautioned not to put undue
reliance on forward-looking statements due to the inherent uncertainty
therein.

    Lorus Therapeutics Inc.'s recent press releases are available through the
Company's website at www.lorusthera.com.

    %SEDAR: 00002368EF          %CIK: 0000882361

    /For further information: Lorus Therapeutics Inc., Dr. Saeid Babaei,
(416) 798-1200 ext. 490, ir(at)lorusthera.com/
    (LOR. LRP)

CO:  Lorus Therapeutics Inc.

CNW 21:59e 01-MAY-07