Altachem signs collaborative agreement with Korean research institute

- Agreement adds horsepower to Altachem's product pipeline -

Trading Symbol: AAF:TSX Venture Exchange

EDMONTON, Sept. 8 /CNW/ - Altachem Pharma Ltd. ("Altachem") has signed a
Memorandum of Understanding ("MOU") with the Research Centre for Bioactive
Materials (RCBM) at Korea's Chonbuk National University. The MOU is a formal
agreement by the two organizations to identify collaborative research programs
and is expected to quickly lead to the establishment of specific projects
designed to underpin Altachem's discovery programs in cancer.
"I'm delighted that we have been able to execute this agreement" remarked
Dr. David Cox, President and CEO "Now that our photodynamic therapy products
have reached the clinical phase of development, it is time to pay more
attention to our exciting pre-clinical and discovery phase cancer
therapeutics. This MOU should allow us to bring additional top-notch
scientific resources to help accelerate the development of our sonodynamic and
cyclin-dependant kinase inhibitor programs".
The MOU calls for both parties to collaborate in reviewing Altachem's
research and technology development needs and plan projects that will most
effectively meet those needs. An early priority for collaboration will be the
cyclin-dependant kinase inhibitor program (CDKi), which Altachem would like to
accelerate. CDK inhibitors are rapamycin analogues that have the potential
specifically to inhibit certain enzymes involved in cancer cell proliferation
and invasion. The company has already identified some promising lead compounds
that appear to have powerful inhibitory effects on several cancer cell lines.
These groups of compounds are likely to complement SonoLight technology in the
company's drive to provide comprehensive treatment options for cancer
patients. Given adequate resources, the company is expected to take this
product to the clinical stage by end of Q4, 2006.
Additionally, the company is anxious to deploy more resources to its
sonodynamic therapy program. Again, consistent with the corporate strategy of
providing comprehensive cancer treatment options, this technology allows
certain of Altachem's Hypocrellin derivatives to be activated by ultrasound,
rather than light, thus opening up the possibility of treating deep-seated
tumours.
"We are very happy to establish this relationship with Altachem" said  
Dr. Ki-Jun Hwang, Director of RCBM. "It is a natural evolution of the informal
relationship we have enjoyed for some time now, and my recent appointment to
the Altachem Scientific Advisory Board has helped cement this. I and my team
of scientists are very much looking forward to working with the company to
help accelerate its continued development".

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 SonoLight and CDK platforms. It also has a profitable product in        
Accu-MAb(TM), a monoclonal-based diagnostic kit for whooping cough.

About RCBM

Research Centre for Bioactive Materials, located in Chonbuk National
University (CBNU) in Korea, is actively involved in the Research and
Development of pharmaceuticals. CBNU is one of the leading universities in the
North-East Asia since 1947. For further information on the institute please
contact: Professor Ki-Jun Hwang, Director, kijun(at)chonbuk.ac.kr, Tel.   
(011) 82632704321.

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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