March 29, 2004

News Release: Bioxel Extends Paclitaxel Purchase Agreement With CTI

Bioxel Pharma Inc. (TSX Venture: BIP), a leading manufacturer of naturally derived taxanes and targeted oncology drugs, today announced that it has extended a non-exclusive purchase agreement for cGMP paclitaxel with Cell Therapeutics, Inc. (CTI) of Seattle, WA (Nasdaq: CTIC). The companies executed a binding letter of intent for the purchase and supply of cGMP paclitaxel originating from Bioxel's new large-scale paclitaxel manufacturing unit. The arrangement covers potential paclitaxel orders through 2004, which upon delivery, are valued at CA$5.4 million, with the right to supply additional cGMP paclitaxel needs of CTI as mutually agreed to by the companies. Pierre Lacroix, President and CEO of Bioxel Pharma said, 'Bioxel is fully committed to the large-scale manufacturing of cGMP paclitaxel and other taxane ingredients that are already used extensively in cancer treatment worldwide. This agreement with CTI will help fill new paclitaxel manufacturing capacity coming on stream in the second quarter of 2004.'Dr Lacroix added, 'This 120 kilogram per year cGMP paclitaxel capacity, will allow Bioxel to execute on its commercial manufacturing plans. We will deliver revenue growth and value to our shareholders. And, by providing quality, consistency and a reliable supply chain to our customers, Bioxel is already taking a lead position in the worldwide supply of taxane pharmaceutical ingredients.'

Bioxel will generate revenues from cGMP paclitaxel starting with the first production lots at the new large-scale cGMP paclitaxel manufacturing unit. The company has filed US, Canadian and European Drug Master Files for paclitaxel. The final cGMP product will be manufactured at a US Food and Drug Administration (FDA) approved facility. Paclitaxel manufactured under this agreement will be used by CTI for production of XYOTAX(TM) which is currently in clinical development and has received fast track designation from the FDA for the potential treatment of non-small cell lung cancer in patients with a poor performance status (PS2).

Paclitaxel is a high valued and very scarce natural product used in cancer treatment. Bioxel isolates paclitaxel and other taxane ingredients from the Canada yew, the world's largest reservoir for taxane drugs. The Company has harvesting agreements on public and private lands throughout Eastern Canada covering more than 250,000 square kilometers. This represents enough yew biomass to sustainably yield more than 200 kilograms of pure paclitaxel annually. The company also produces 10-DAB and DHB, two taxanes that are used as starting materials in the preparation of other leading cancer drugs.

About Bioxel Pharma

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Bioxel Pharma Inc. is an emerging leader in biopharmaceuticals, focused on developing, manufacturing and marketing naturally derived taxanes, including paclitaxel. Taxanes are used in the development of therapeutic drugs for the treatment of cancer and other diseases, including psoriasis, rheumatoid arthritis, and in cardiovascular disease through the use of drug- coated coronary stents. The Corporation produces cGMP paclitaxel and is building a platform of other taxane-based drug candidates such as taxane analogs, proprietary formulations and immunoconjugates targeting various cancers and multi-drug resistant tumours.

About Cell Therapeutics, Inc.

Headquartered in Seattle, WA, CTI is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. For additional information, please visit www.cticseattle.com .

This announcement includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. These include risks and uncertainties that could affect Bioxel's product under development such as, regulatory factors, technological developments and competitive factors. Achievement of the objectives set forth in this release is subject to these risks and uncertainties. The Corporation's results, or measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the realization of financial projections.
The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

For further information: Bioxel Pharma Inc.: Mr. Pierre Lacroix,Eng. Ph.D., President and Chief Executive Officer, (418) 654-9666 (ext.230);www.bioxelpharma.com; Renmark Financial Communications Inc.: Henri Perron,hperron(at)renmarkfinancial.com; Edith English,eenglish(at)renmarkfinancial.com; Media: Colette Saulnier,csaulnier(at)renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717;www.renmarkfinancial.com; We invite you to visit our web site to keep track ofthe Corporation at www.bioxelpharma.com

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