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by Sophiris Bio News Release

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San Diego, California and Vancouver, British Columbia, August 13, 2012 – Sophiris Bio Inc. (Sophiris, TSX: SHS), a urology company developing a late-stage, highly targeted treatment for benign prostatic hyperplasia (BPH or enlarged prostate), today announced financial results for the three and six months ended June 30, 2012.

Quarter Ended June 30, 2012

The Company reported a net loss of $5.7 million ($0.03 per share) for the three months ended June 30, 2012, compared to a net loss of $3.3 million ($0.03 per share) for the three months ended June 30, 2011, representing an increase of $2.4 million. The increase in net loss was driven primarily from an increase in total operating expenses of $1.8 million over the same period in 2011, as a result of our increased research and development activities of PRX302, principally our on-going Transrectal study and clinical material manufacturing expenses.

Research and Development Costs

Research and development costs were $3.7 million for the three months ended June 30, 2012, versus $1.7 million for the three months ended June 30, 2011, an increase of $2.0 million. The increase in research and development expenses is primarily attributable to PRX302, specifically the ongoing Transrectal study and clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the three months ended June 30, 2012, were $1.4 million, a decrease of $0.2 million from the $1.6 million incurred during the three months ended June 30, 2011. For the three months ended June 30, 2011, included as a component of our general and administrative expenses is $0.7 million of severance related costs associated with the shut-down of our Vancouver operations. When the severance related costs are excluded from our operating results for the three months ended June 30, 2011, our general and administrative expenses increased $0.5 million for the three months ended June 30, 2012 compared to the three months ended June 30, 2011, primarily as a result of an increase in personnel related costs associated with the build-out of our La Jolla general and administrative group.

Interest Income

Interest income increased approximately $20,000 in the three months ended June 30, 2012 compared to the three months ended June 30, 2011. The increase in interest income was due to the movement of our cash balances into higher yielding interest bearing accounts during the three months ended June 30, 2012.

Interest Expense

During the three months ended June 30, 2012, the Company incurred interest expense related to the Company’s secured promissory note with Oxford Financial LLC of $0.5 million. The secured promissory note was originated during July 2011 and therefore there was no interest expense related to this loan during the three months ended June 30, 2011.

Six months ended June 30, 2012

The Company reported a net loss of $10.2 million ($0.07 per share) for the six months ended June 30, 2012, compared to a net loss of $5.5 million ($0.05 per share) for the six months ended June 30, 2011, representing an increase of $4.7 million. The increase in net loss was driven primarily from an increase in total operating expenses of $3.7 million over the same period in 2011, as a result of our increased research and development activities of PRX302, principally our on-going Transrectal study and clinical material manufacturing expenses.

Research and Development Costs

Research and development costs were $6.8 million for the six months ended June 30, 2012, versus $3.0 million for the six months ended June 30, 2011, an increase of $3.8 million. The increase in research and development expenses is primarily attributable to PRX302, specifically the on-going Transrectal study and clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the six months ended June 30, 2012, were $2.4 million, a decrease of $0.1 million from the $2.5 million incurred during the six months ended June 30, 2011. For the six months ended June 30, 2011, included as a component of our general and administrative expenses is $0.7 million of severance related costs associated with the shut-down of our Vancouver operations. When the severance related costs are excluded from our operating results for the six months ended June 30, 2011, our general and administrative expenses increased $0.6 million for the six months ended June 30, 2012 compared to the same period in 2011. This increase primarily relates to an increase in personnel related costs associated with the build-out of our La Jolla general and administrative group and costs associated with our recent name change.

Interest Income

Interest income increased approximately $19,000 in the six months ended June 30, 2012 compared to the six months ended June 30, 2011. The increase in interest income was due to the movement of our cash balances into higher yielding interest bearing accounts during the quarter ended June 30, 2012.

Interest Expense

During the six months ended June 30, 2012, the Company incurred interest expense related to the Company’s secured promissory note with Oxford Financial LLC of $1.0 million. The secured promissory note was originated during July 2011 and therefore there was no interest expense related to this loan during the six months ended June 30, 2011.

For complete financial results, please see our filings at www.sedar.com.

About Sophiris

Sophiris Bio Inc. is a urology company developing a late-stage, highly targeted treatment for benign prostatic hyperplasia (BPH or enlarged prostate), an unsatisfied market with blockbuster potential. PRX302, the company’s lead candidate for BPH, is designed to be as efficacious as pharmaceuticals, less invasive than the surgical interventions, and without the sexual side effects seen with existing treatments. Sophiris is planning to begin a pivotal trial by the end of 2012. Sophiris is advised by world-leading urologists, backed by experienced investors, and led by a team that has achieved more than twenty drug approvals including several blockbusters. For more information, please visit www.sophirisbio.com.

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Sophiris’ current beliefs as well as assumptions made by and information currently available to Sophiris and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Sophiris in its public securities filings; actual events may differ materially from current expectations. Sophiris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information contact:

Lauren Glaser
Investor Relations
The Trout Group
646-378-2972
lglaser@troutgroup.com

James Beesley
Investor Relations
Sequoia Partners
778-389-7715
james@sequoiapartners.ca

Michael Moore
Investor Relations
Equicom Group
619-467-7067
mmore@equicomgroup.com

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