Quest PharmaTech Inc. Sells ACP-HIP Technology to Its Original Inventor

- Non-Core Assets Divesture continues - 

EDMONTON, Feb. 7 /CNW/ - Quest PharmaTech Inc. (TSX.V: QPT, the
"Company") announces that it has signed an agreement with Dr. Tony Antakly of
the University of Montreal to sell him the product 'ACP-HIP' and its
associated technology. Dr. Antakly is the original inventor of the HIP
technology, a potential treatment for AIDS and AIDS-related conditions. Quest
acquired the Technology from University of Montreal in 1998 and commenced
development of the product at that time in collaboration with Dr. Antakly and
the University of Montreal. However, the Company suspended development work on
ACP-HIP in early 2005 as a consequence of the Company's renewed focus on
cancer therapeutics.
"I'm delighted that we have been able to complete this transaction"
commented Dr. David Cox, President & CEO. "I'm especially happy that ACP-HIP
will continue its development under the guidance of Dr. Antakly, the original
inventor of the product. This is also another instance whereby Quest,
consistent with its strategy of focus on photo- and sono-dynamic therapies,
has been able to extract value from its non-core assets. Perhaps more
importantly, this agreement has now eliminated any previous possibility of
legal action relating to this technology by Dr. Antakly and/or the University
of Montreal."
Financial details of the transaction are not disclosed, but the
consideration involves an up-front payment to Quest, milestone payments based
on continued progress through clinical development and a royalty based on
sales of the product, if approved. The total consideration would be $2,300,000
if all milestones are met and the product is successful in the marketplace.
"Development of the HIP molecule, discovered in my laboratory at the
University, is already well underway" said Dr. Antakly. "After having the
privilege of securing permission from Health Canada and coordinating its
testing on humans in Phase I clinical trials which were done at the
University's medical center, I am very eager to resume further clinical
development of this exciting technology. As we all know, drug development,
which begins in the R&D lab, is a long-term process that is a true team
effort. It can be arduous and frustrating but I am convinced that HIP, through
our renewed endeavours, can one day become a safe and effective drug for
treating AIDS-Kaposi's sarcoma and other malignancies". Dr. Antakly went on to
say: "The present transaction is a win - win situation for Quest and myself
allowing Quest to concentrate on cancer therapeutics using its promising
SonoLight platform".

About Quest PharmaTech Inc.
---------------------------

The Corporation is a publicly traded (TSX Venture Exchange: QPT),  
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 dermatological conditions based on
its unique photodynamic and sonodynamic therapy platforms. The Company also
has a profitable product in Accu-MAb(TM), a monoclonal-based diagnostic kit
for whooping cough. For further information, we invite you to visit us at
www.questpharmatech.com

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

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