SEATTLE, Sept. 17 /PRNewswire-FirstCall/ - On August 20, 2008 Oncothyreon Inc. (Nasdaq: ONTY) (TSX: ONY) disclosed that it had received a letter from The Nasdaq Stock Market indicating that (i) it did not comply with the requirements for continued listing on The NASDAQ Global Market because it did not meet the maintenance standard in Marketplace Rule 4450(b)(1)(A) that specifies, among other things, that the market value of its common stock be at least $50 million and (ii) in accordance with the Marketplace Rule 4450(e)(4), it had a 30-calendar-day period in which to regain compliance. On September 16, 2008 Oncothyreon received a Staff Determination Letter from The Nasdaq Stock Market indicating that it has not regained compliance.

Oncothyreon intends to request a hearing by a Nasdaq Listing Qualifications Panel to appeal such determination. Oncothyreon expects the hearing to take place within four to eight weeks, and its shares will continue to be listed on The NASDAQ Global Market pending the outcome of the hearing.

On September 2, 2008 Oncothyreon announced its intention to offer 5,100,000 shares of its common stock. The standards for listing on The NASDAQ Capital Market provide, among other things, that an issuer maintain stockholders' equity of at least $2.5 million or minimum market value of securities of at least $35.0 million. If Oncothyreon generates net proceeds in excess of $5.0 million, Oncothyreon believes that it will meet the standards for listing on The NASDAQ Capital Market. If Oncothyreon continues to meet such standards, it may choose at any time prior to the end of the appeal process to apply to transfer the listing of its common stock to The NASDAQ Capital Market, which application would be subject to Nasdaq approval.

A registration statement relating to Oncothyreon's common stock (File # 333-149837) has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor, shall there be any sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer of such securities will be solely by means of a prospectus included in the registration statement and any prospectus supplement that may be issued with respect to such offering.