Altachem Pharma Ltd. - Corporate Update

Trading Symbol: AAF:TSX Venture Exchange

EDMONTON, Sept. 26 /CNW/ - Altachem Pharma Ltd. ("Altachem" or the
"Company") wishes to announce that it has granted 50,000 stock options to each
of its new Directors, Dr. Donald Rix and Mr. Richard H. ("Rick") Smith. The
exercise price of the options is $0.25. All allocations will be subject to
approval by the TSX Venture Exchange.
The Company is also pleased to announce the repatriation of cash from its
China subsidiary, Shanghai Altachem Pharma Biotechnology Ltd. ("SACP"). These
funds (over $1 million US) have been deposited to the Company's bank in
Canada.
"While this of course does not solve all of our cash needs" remarked
Pierre Vermette, CFO, "it does provide a very useful breathing space for us".
Related to the receipt of the funds from SACP, negotiations have been
completed with the Company's convertible debenture holders to substitute
collateral. The convertible debenture is now collateralized by certain of the
Company's Intellectual Property.

About Altachem Pharma Ltd.

The Company 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 SonoLight and CDK platforms. It also has a profitable product in      
Accu-MAb(TM), a monoclonal-based diagnostic kit for whooping cough. The
Company is in the process of changing its name to Quest PharmaTech Inc.

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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