Quest PharmaTech Announces Proposed Private Placement

                 -Up to $800,000 in equity financing-

              Trading Symbol: QPT: TSX Venture Exchange

EDMONTON, Jan. 24 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company") announces that it proposes to effect a private placement of up to 8,000,000 units to raise $800,000. Each unit will be priced at $0.10 per unit and will be comprised of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of $0.20. The warrants will expire within 12 months of the date of issue.

The funds raised will be used for general corporate purposes over the coming 6 months including completion of the ongoing 50 patient hair removal clinical trial in Canada. It is anticipated that insiders of the Company will be subscribing for units under this proposed private placement.

The Company anticipates a $300,000 investment from its strategic partner for the Asian hair removal market, KMH Co. Ltd. ("KMH"), upon successful registration of SL017 with International Nomenclature of Cosmetic Ingredient. The KMH investment may form a part of the proposed private placement.

The Company may pay a finders fee in connection with a portion of this proposed private placement.

"With this bridge financing, the Company anticipates obtaining critical data from ongoing clinical trials for hair removal and actinic keratoses, and preclinical efficacy data for prostate cancer" said Dr. Madi R. Madiyalakan, CEO of the Company.

Investors interested in subscribing for units can contact the Company for further details.

The Company also announces the granting of 150,000 stock options at an exercise price of $0.25 to three of its independent board of directors under the Company's Stock Option Plan.

About Quest PharmaTech Inc.

The Corporation is a publicly traded (TSX Venture Exchange: QPT), Alberta-based drug development company committed to the development and commercialization of new pharmaceutical products. It is developing a series of products for the treatment of cancer and dermatological conditions based on its unique photodynamic and sonodynamic therapy platform.

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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