May 13, 2003

News Release: Altachem Pharma Ltd. Receives Ethics Committee Approval to Commence Phase I Human Clinical Trials on ACP-HIP

Mr. Doug Bachman, Vice President of Corporate Development of Altachem Pharma Ltd., is pleased to announce that the Ethics Committee for the Centre Hospitalier de l'Universite de Montreal has approved the protocol to allow Altachem to commence a Phase I double blind human clinical trial on ACP-HIP for the treatment of Kaposi's sarcoma at their site.

Mr. Bachman is also pleased to announce: A. The principal investigator for the clinical trials will be Dr. Emil Toma, M.D., D.Sc., FRCPC of Montreal, Quebec. Dr. Toma specializes in the field of microbiology and infectious diseases and has also been the principle investigator for several HIV/AIDS clinical trial studies. B. Global International Quality Medical Research Inc. (Global IQ) is contracted by Altachem as an independent clinical research organization to provide Altachem with independent clinical site management, electronic data capture of the clinical trial results, and assurance that the clinical trial is conducted to meet the guidelines of the approval protocols, the ethics committee and the regulatory standards set by the Health Products and Food Branch (HFPB).
ACP-HIP is a natural compound with potential activity against the causative viral agent of Kaposi's sarcoma. The Phase I Clinical Trial is primarily designed to evaluate the safety and tolerability of the compound, with ancillary studies designed to test efficacy of the compound in terms of tumor size, viral load, and effects on the immune system. The trial will involve patients that currently have Kaposi's sarcoma.

'Because of the severity of Kaposi's sarcoma, we are able to conduct this Phase I Clinical Trial in patients with Kaposi's sarcoma. In most clinical trials, the new drug candidates are not tested on patients with the relevant disease until Phase II trials,'states Mr. Thomas Woo, Vice President of Product Development. Mr. Woo also states 'Since obtaining the No Objection Letter from Health Canada in December, Altachem has been finalizing the required details to initiate this trial and we are pleased to be working with Dr. Toma, Global IQ and the Centre Hospitalier de l'Universite de Montreal.'

ACP-HIP has the potential to be of benefit in the currently unmet need for treatment and control of Kaposi's sarcoma, a malignancy associated with severe immunosuppression observed in AIDS patients. Altachem owns the world rights to ACP-HIP and has applied for patent protection in several countries. The World Health Organization and UNAIDS estimated that at the end of 2002 there would be 42 million people living with HIV/AIDS and 3.1 million deaths due to HIV/AIDS. More information on Kaposi's sarcoma can be obtained at www.cancer.gov/cancerinfo/pdq/treatment/kaposis.

On May 22, 2003, Altachem will be posting on its website a video presentation about ACP-HIP. The presentation will be done by Mr. Thomas Woo, Vice President of Product Development and Mr. Doug Bachman, Vice President of Corporate Development. Please logon to www.altachempharma.com and follow the links.

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 are located in Edmonton, Alberta and Shanghai, China are certified compliant with internationally recognized quality systems standards.

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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