- 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. %SEDAR: 00008400E