Altachem Pharma advances ACP-HIP Phase I clinical trial

Edmonton, AB – May 31, 2004 – Altachem Pharma says it completed enrollment of the first group of four patients on May 14, 2004 for the ACP-HIP Phase I clinical trial and confirms its continued focus in advancing the development of ACP-HIP, one of Altachem’s premier technologies.

In February 2004, Altachem’s board of directors formed a task force to conduct science and business audits of the ACP-HIP project. This review included discussions with all parties relevant to the ACP-HIP project and the Phase I clinical trial and has resulted in the establishment of renewed working relationships with the discoverer of HIP, key experts and AIDS associations in Montreal and Toronto. These initiatives have resulted in the recruitment of additional patients for the ACP-HIP Phase I clinical trial.

Clinical data and an interim report from this first group will be available in late June 2004.

The ACP-HIP Phase I clinical trial is primarily designed to evaluate the safety and tolerability of the compound. It is designed to test ACP-HIP in three groups of four patients each at three different doses. The study is described as randomized, double blind, placebo-controlled.

In accordance with the original ACP-HIP technology development agreements, Altachem has paid $124,000, issued 150,000 common shares and granted 50,000 options. In addition, 200,000 options have been granted for the continued development of ACP-HIP.