July 24, 2003

News Release: Positive Results for Testing Bionex(TM) Against the Coronavirus and Poliovirus

Mr. Warren Jackson, President and CEO of Altachem Pharma Ltd., is pleased to announce positive results from testing completed on the Bionex(TM) disinfectant against the Corona virus and Polio virus. The Corona virus is proved the causative pathogen for the SARS outbreak. The results from 'Polio virus killing test'indicated that Bionex(TM) disinfectant can kill both non-enveloped and enveloped viruses, including Norwalk virus, Hepatitis A, Hepatitis B, Hepatitis C, HIV, Herpes Simplex and West Nile viruses etc.

To validate the effectiveness of the Bionex(TM) disinfectant formulations, testing has been completed by a Level 3 Bio-Science Laboratory which has received certification through the council for Anti-Microbial Quality (CAQ) in its laboratory accreditation program as well as having memberships with the National Capital Area Regional Society of Quality Assurance (NCARSAQ) and the Society of Quality Assurance (SQA) in the United States. Mr. Jackson states, 'based on the positive results received, Beijing Altachem Pharma has the confidence to proceed with the necessary steps for regulatory approval to sell Bionex(TM) as a high level disinfectant by various formulations, for example: spray, hand cleanser or all purpose cleanser, in the hospital and healthcare settings, such as disinfection for operating rooms, equipment and devices. They can potentially be used for staffs in the settings of disease control, quarantine, environment hygiene, cosmetic and massage business, customs, boarder control, banks, post offices, hotels, restaurants, shopping stores, public transportation, public places or cultural, sports and recreational events, etc. in North America, China and various other countries.'

Dr. Shou-bai Tang, Clinical Research Associate of Altachem Pharma Ltd. states, 'In the event of an outbreak of an infectious disease, Bionex(TM) disinfectant can be used to prevent the spread of its specific pathogen and help to control the further spread of the disease.'

Altachem Pharma Ltd. is in the process of implementing a production line in the Shanghai manufacturing facility to produce the Bionex(TM) disinfectant product for sales in China as well as for export.

Bionex(TM), a revolutionary product for the potential use in inactivating the HIV virus, hepatitis B and C viruses, Herpes virus and other pathogens in blood products, is exclusively licensed to Beijing Altachem Pharma Biotechnology Ltd., a wholly owned foreign enterprise of Altachem Pharma Ltd.

Altachem Pharma Ltd. is a publicly traded (TSX Venture Exchange: AAF), Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products. The Corporation is developing a multi-tiered, integrated approach for the treatment of HIV/AIDS and cancer using non-toxic therapeutic products and adjunct therapies. The lead products of the Corporation are based on its two proprietary drugs: ACP-HIP and HB. The Corporation's manufacturing facilities located in Edmonton, Alberta and Shanghai, China are certified compliant with internationally recognized quality systems standards.

Doug Bachman has resigned as Vice President of Corporate Development. For further information on corporate development please contact Warren Jackson, President and CEO of Altachem Pharma Ltd. (780) 448-1400 Ext. 224.

Certain information contained in this press release may be forward- looking and is subject to unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This is neither an offer to buy or sell a security. For informational purposes only, from sources deemed to be reliable.

'TSX Venture Exchange has neither approved nor disapproved of the information contained herein.'

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For further information: Roger Andrews, Investor Relations, Altachem Pharma Ltd., Tel.: (780) 486-8331 (Ext. 331), Toll-free: (877) 502-5939, Fax : (780) 448-1436, E-mail: roger(at)altachempharma.com, Web site: www.altachempharma.com

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