Direct Financial Strategies and Communication is Appointed to Provide Investor Relations Services for Pediapharm Inc.

MONTREAL, QUÉBEC--(Marketwired - July 3, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Pediapharm Inc. (TSX VENTURE:PDP) ("Pediapharm" or the "Company") has entered into a consulting agreement with Direct Financial Strategies and Communication Inc. ("DFSC") to provide investor relations and consulting services to the Company, including articulating the Company's value to strategic partners and the investment community.

"DFSC, an established investor relations and consulting company based in Montreal, Quebec, will work with management to disseminate and communicate to members of the financial community, to potential investors and to current shareholders on the activities and advances made by the Company on a regular basis," said Sylvain Chretien, President of Pediapharm.

The agreement is for a term of 2 years, and may be terminated by either party by giving 30 days written notice of such termination. The Company will pay a consulting fee to DFSC of $5,500 per month, plus approved expenses incurred on behalf of the Company.

Pediapharm has also granted to DFSC stock options giving it the right to purchase up to 150,000 common shares of the Company at an exercise price of 0.34 per common share for a period of 2 years. These options will vest over a 12-month period at a rate of 25% per quarter. The options will follow the guidelines set out in the Company's stock option plan and as set forth by TSX Venture policy. Both the stock option grant and the investor relations consulting agreement are subject to the approval of the TSX Venture.

About Direct Financial Strategies and Communication Inc.

DFSC is a Montreal-based investor relations and consulting company. The company works with junior, public, emerging companies in a variety of industries and sectors to provide capital markets advisory, fundraising, and investor relations services. It leverages business acumen, capital markets experience and access to finance through its extensive network and contacts to help companies achieve their goals.

About Pediapharm Inc.

Pediapharm is the only Canadian specialty pharmaceutical company dedicated to serving the needs of the pediatric community. Its mission is to bring to the Canadian market the latest innovative pediatric products with the objective to improve the health and the well-being of children in Canada. Since its debut in 2008, Pediapharm has entered into numerous commercial agreements with partners from Canada and other countries around the world. The Company's innovative portfolio of commercialized products includes NYDA®, a breakthrough treatment for head lice; Pediapharm Naproxen Suspension, the only prescription NSAID in the form of suspension available in Canada; EpiCeram®, a non-steroid emulsion for eczema; KoolEffect® which reduces the symptoms of fever; and VapoLyptus®, a soothing vapour patch of Eucalyptus and Camphor.

Neither TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

The securities of Pediapharm being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties, including without limitation, statements pertaining to the closing of the Offering including the intended use by the Company of the net proceeds of the Offering. Actual results may differ materially. Pediapharm will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Pediapharm.