Altachem Pharma Ltd. completes collapse of a Chinese subsidiary

- Company can now repatriate cash back to Canada -

Trading Symbol: AAF:TSX Venture Exchange

EDMONTON, Sept. 15 /CNW/ - Altachem Pharma Ltd. ("Altachem" or "the
Company") announced today that it has received notification that all of the
necessary approvals have been received from the Chinese government to collapse
the Company's wholly-owned subsidiary, Shanghai Altachem Pharma Biotechnology
Ltd ("SACP") and to repatriate all assets back to Canada.
"This is an important milestone for Altachem," said Dr. David Cox,
President and CEO "and fully consistent with our strategic re-positioning
announced earlier this year. We can now transfer all of SACP's assets to
Altachem at our convenience, including more than one million dollars (US) held
in SACP's bank account. This will of course considerably augment our working
capital."
SACP is one of two companies in China that are wholly-owned by Altachem.
Although it has not been an operating company for some time, it nevertheless
owned various intellectual property assets as well as its cash deposits which
until now could not readily be used outside of China. These assets include
worldwide rights to the Bionex family of disinfectants, Chinese rights to  
ACP-HIP (an investigational drug for Kaposi's sarcoma) and Sonolight
technology for blood safety applications. These assets can now be used to
generate revenue through licensing or sale. Altachem's other business in
China, Shanghai Hua Gao Pharmaceutical Pellet Core Company Ltd. is an
operating business and is presently for sale. The Company anticipates
completing the sale of this business by year end.

About Altachem Pharma Ltd

The Corporation is a publicly traded (TSX Venture Exchange: AAF), 
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 other proliferative diseases based on
its Photodynamic/Sonodynamic technology ("SonoLight") and its cyclin-dependant
kinase inhibitor platforms. As well as the Actinic Keratosis indication, the
Company is also developing a treatment for prostate cancer based on the
Sonolight technology. Altachem also has a profitable product in AccuMAb(TM), a
monoclonal-based diagnostic kit for whooping cough.
Except for historical information, this press release may contain 
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.

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

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