ART Advanced Research Technologies Inc. Announces a Private Placement of Approximately US$6 Million in Preferred Shares

Longtime Shareholders Commit to Reinvest in Corporation

MONTREAL, CANADA–(EMWNews – Aug. 7, 2008) – NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ART Advanced Research Technologies Inc. (“ART” or the “Corporation”) (TSX:ARA), a Canadian medical device company and a leader in optical molecular imaging products for the healthcare and pharmaceutical industries, is pleased to announce that OppenheimerFunds, Inc. (investment adviser to and on behalf of certain advisory clients) and other long-time shareholders of ART (collectively the “Investors”) have committed to invest an additional total amount of US$6.0 million by way of a private placement of convertible preferred shares. ART expects to close the transaction on or about August 15, 2008 and intends to use the net proceeds of the financing as working capital. This private placement is subject to obtaining all necessary approvals, including that of the Toronto Stock Exchange (the “TSX”).

The private placement of a total of 46,092,428 preferred shares will be made at a price of C$0.13 per preferred share. The preferred shares will be entitled to a cumulative dividend of 7% of the issue price per preferred share, payable as and when declared by the directors of the Corporation. At the option of the Corporation, the preferred shares will be redeemable at the issue price plus the accrued but unpaid dividends on the preferred shares and will be convertible at any time into common shares at a fixed conversion rate of 0.95 common share for each preferred share. The Corporation will also be entitled to force the conversion of the preferred shares into common shares at the same conversion rate upon the occurrence of certain events.

This press release is not an offering of securities for sale in the United States. The preferred shares have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

About ART

ART Advanced Research Technologies Inc. is a leader in molecular imaging products for the healthcare and pharmaceutical industries. ART has developed products in medical imaging, medical diagnostics, disease research, and drug discovery with the goal of bringing new and better treatments to patients faster. The Optix^® optical molecular imaging system, designed for monitoring physiological changes in living systems at the preclinical study phases of new drugs, is used by industry and academic leaders worldwide. The SoftScan^® optical medical imaging device is designed to improve the diagnosis and treatment of breast cancer. Finally, the Fenestra^® line of molecular imaging contrast products provides image enhancement for a wide range of preclinical Micro CT applications allowing scientists to see greater detail in their imaging studies, with potential extension into other major imaging modalities. ART’s shares are listed on the TSX under the ticker symbol ARA. For more information on ART, visit our website at www.art.ca.

This press release may contain forward-looking statements subject to risks and uncertainties that would cause actual events to differ materially from expectations. These risks and uncertainties are described in ART’s most recent Annual Information Form and the financial statements for the year ended December 31, 2007, available on SEDAR (www.sedar.com).