OccuLogix Reports Q1-06 Financial Results

OccuLogix, Inc. (NASDAQ: RHEO)(TSX:RHE) today reported its consolidated financial results for the three months ended March 31, 2006. All dollar amounts are expressed in U.S. currency, and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

For the first quarter of 2006, net revenues were nil compared to $403,739 in the first quarter of 2005. The Q1-06 net loss was $5.7 million, or $0.14 per share, compared to a net loss of $3.3 million, or $0.08 share, in the 2005 first quarter.

As of March 31, 2006, the company had cash and cash equivalents and short-term investments of $36.5 million.

Conference Call and Webcast Information

OccuLogix will hold a conference call to discuss these results today, May 8, at 4:15 p.m. Eastern Time at 800-701-7176 (within the United States and Canada), or 416-620-2407 (internationally). The call will also be broadcast live and archived on the company's website at www.occulogix.com under the "webcasts" link in the Investor Relations section. For those wishing to listen to a recording of the call via telephone, a replay will be made available as soon as possible after the conclusion of the live call and will remain posted for a period of seven days. To listen to the recording, simply telephone 416-626-4100 and enter reservation # 21291374 when prompted.

About OccuLogix, Inc.

OccuLogix is a health care company that brings innovative and evidenced-based medical therapies to market. OccuLogix's common shares trade on the NASDAQ National Market under the symbol 'RHEO' and on the Toronto Stock Exchange under the symbol 'RHE'. Visit us on the internet at www.occulogix.com (corporate) and www.rheo.com (healthcare professionals, patients and caregivers).

Forward-Looking Statements

This press release may contain forward-looking statements. These statements relate to future events and are subject to risks, uncertainties and assumptions about the company. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward-looking statement, including the factors detailed in our filings with the Securities and Exchange Commission and Canadian regulatory authorities, including our Registration Statement on Form S-1. We do not undertake to update any forward-looking statements.

OCCULOGIX, INC.

                CONSOLIDATED STATEMENTS OF OPERATIONS
                     (expressed in U.S. dollars)
                             (Unaudited)

                                                 Three months ended,
                                           March 31,       March 31,
                                                2006            2005

Revenues
   Sales to unrelated parties                    $ -       $ 340,200
   Sales to related parties                        -          63,539
Total revenues                                     -         403,739
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Cost of goods sold
   Cost of goods sold to unrelated
    parties                                1,625,000         242,455
   Cost of goods sold to related
    parties                                        -          32,479
   Royalty costs                              25,000          25,000
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Total cost of goods sold                   1,650,000         299,934
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Gross margin (loss)                      (1,650,000)         103,805
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Operating expenses
   General and administrative              1,996,585       2,180,713
   Clinical and regulatory                 1,475,387       1,344,026
   Sales and marketing                       425,986         385,846
  Restructuring charges                      819,642               -
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                                           4,717,600       3,910,585
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Loss from operations                     (6,367,600)     (3,806,780)
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Other income (expenses)
Interest income                              370,926         355,043
Other                                          (381)          11,581
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                                             370,545         366,624
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Loss before income taxes and
 cumulative effect of a change in
 accounting principle                    (5,997,055)     (3,440,156)
Recovery of income taxes                     158,058         158,792
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Loss before cumulative effect of a
 change in accounting principle          (5,838,997)     (3,281,364)
Cumulative effect of a change in
 accounting principle                        107,045               -
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Net loss for the period                $ (5,731,952)   $ (3,281,364)
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Weighted average number of
 shares outstanding
 - basic and diluted                      42,166,561      41,810,679
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Loss before cumulative
 effect of a change in
 accounting principle per
 share - basic and diluted                  $ (0.14)        $ (0.08)
Cumulative effect of a change in
 accounting principle per share
 - basic and diluted                               -               -
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Basic and diluted net loss per share        $ (0.14)        $ (0.08)
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OCCULOGIX, INC.

                       CONSOLIDATED BALANCE SHEETS
                       (expressed in U.S. dollars)
                              (Unaudited)

                                           March 31,    December 31,
                                                2006            2005
ASSETS
Current
Cash and cash equivalents               $ 14,814,326     $ 9,599,950
Short-term investments                    21,711,346      31,662,845
Amounts receivable, net                      528,929         554,966
Inventory, net                             4,059,234       4,701,464
Prepaid expenses                             789,736         803,268
Deposit                                       11,314           4,891
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Total current assets                      41,914,885      47,327,384
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Fixed assets, net                            438,205         470,561
Patents and trademarks, net                  205,231         135,232
Intangible asset, net                     23,498,028      23,927,195
Goodwill                                  65,945,686      65,945,686
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Total assets                           $ 132,002,035 $   137,806,058
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable                           $ 100,497       $ 522,520
Accrued liabilities                        2,241,098       2,226,619
Due to related party                          26,926           5,065
Due to stockholders                          185,565         158,233
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Total current liabilities                  2,554,086       2,912,437
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Deferred tax liability                     8,694,271       8,853,062
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Total liabilities                         11,248,357      11,765,499
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Stockholders' equity
Capital stock
Common stock                                  42,187          42,086
  Par value of $0.001 per share;
  Authorized: 75,000,000;
   Issued and outstanding:
  March 31, 2006 - 42,186,579;
   December 31, 2005 - 42,085,853
Additional paid-in capital               337,422,548     336,977,578
Accumulated deficit                    (216,711,057)   (210,979,105)
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Total stockholders' equity               120,753,678     126,040,559
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Total liabilities and stockholders'
 equity                                $ 132,002,035   $ 137,806,058
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