Quest PharmaTech Announces a Review of Strategic Alternatives to Enhance Shareholder Value

TSX Venture: QPT

EDMONTON, Feb. 2 /PRNewswire-FirstCall/ - Quest PharmaTech Inc. (TSX-V: QPT) ("Quest" or the "Company"), a pharmaceutical company developing and commercializing products for the treatment of cancer and dermatological conditions, announces that it has entered into an agreement with Loewen, Ondaatje, McCutcheon Limited ("LOM") to provide financial advisory services in connection with various business development opportunities.

"The current capital market conditions have provided us with alternative strategic opportunities including mergers and acquisitions, strategic partnerships and monetizing certain capital assets," said Dr. Madiyalakan, Chief Executive Officer for Quest. "In order to position the Company for future growth and to increase shareholder value, we are evaluating these alternatives with the help of LOM." In addition, Quest would also like to leverage the valuable clinical and preclinical data it has generated from its proprietary SonoLight Technology, as well as the continuing support from its current shareholders.

Quest also announces the grant of 300,000 stock options to its three independent board members at an exercise price of $0.15. All allocations will be subject to approval of the TSX Venture Exchange.

Quest has four product candidates in development based on its proprietary SonoLight Technology. SL017, for hair removal, is currently in a Phase II, 110-patient clinical trial. SL017, for the treatment of actinic keratosis, has been shown to be safe and well tolerated in a Phase 1 dose-escalation clinical trial. SL017, for the treatment of acne, has completed evaluation in a Phase 1 clinical trial. SL052, which is being developed to treat prostate cancer, has completed preclinical studies.

About Quest PharmaTech Inc. Quest is a publicly traded, Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products. It is developing a series of products for the treatment of cancer and dermatological conditions based on its unique photodynamic and sonodynamic therapy platforms.

About Loewen, Ondaatje, McCutcheon Limited. Founded in 1970 as Loewen, Ondaatje, McCutcheon & Company, LOM was the first independent research-based institutional equity firm in Canada. By combining objective research, value-added financing ideas with institutional sales, trading and investment banking, LOM inaugurated a new era in the investment industry. Today, LOM continues this tradition of independence and excellence by focusing exclusively on institutional investors around the globe for small and mid-capitalization companies.

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SOURCE Quest PharmaTech Inc.