PRESS RELEASES 7/28/2010 1:01:12 PM

Velan Announces Automatic Purchase Plan

July 28, 2010 - 11:01:12 AM

MONTREAL, QUEBEC--(Marketwire - July 28, 2010) - Velan Inc. (the "Corporation") (TSX:VLN) announced today that it has entered into an automatic purchase plan with a broker in order to facilitate repurchases of its Subordinate Voting Shares (the "Shares") under its normal course issuer bid previously announced and approved by the Toronto Stock Exchange ("TSX"). The Corporation has filed with TSX an amended Notice to provide for the implementation of the automatic purchase plan. The normal course issuer bid in respect of the Shares commenced on October 21, 2009 and will terminate on October 20, 2010.

Under the Corporation's automatic purchase plan, the Corporation's broker may repurchase Shares under the normal course issuer bid at any time including, without limitation, when the Corporation would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by the Corporation's broker based upon the parameters prescribed by the TSX and applicable Canadian securities laws and the terms of the parties' written agreement. The Corporation may suspend or terminate the automatic purchase plan only if it does not have material non-public information and the decision to suspend or terminate the automatic purchase plan is not taken during a self-imposed trading blackout period. The automatic purchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been precleared by TSX. The automatic purchase plan will be implemented effective as of August 1, 2010.

T.C. Velan

President



FOR FURTHER INFORMATION PLEASE CONTACT:

VELAN Inc.
Tom Velan
President
514-748-7743
514-748-8635 (FAX)



VELAN Inc.
M. John D. Ball
Chief Financial Officer
514-748-7743
514-748-8635 (FAX)
www.velan.com