Isotechnika obtains US$13 million debt financing



    EDMONTON, June 18 /CNW/ - Isotechnika Inc., today announced that it has
secured a 13 million USD working capital loan. Oxford Finance Corporation, the
principal lender and Silicon Valley Bank, a member company of SVB Financial
Group provided the financing. Proceeds from this financing will be used to
fund the Company's research and development programs and for general corporate
purposes. The full amount of the loan, less fees, was funded at closing.
    "It is responsible business practice to strengthen the Company's cash
position. This transaction provides Isotechnika with non-dilutive funds,"
stated Dr. Robert Foster, Isotechnika's Chairman and Chief Executive Officer.
"We have been funded by two of the leading commercial finance organizations
that specialize in life science companies and value their continued confidence
in Isotechnika."

    About Isotechnika
    -----------------
    Edmonton-based Isotechnika Inc. is an international biopharmaceutical
company focused on the discovery and development of novel immunosuppressive
therapeutics that are designed to offer advantages over other currently
available treatments. There is a significant unmet medical need in the
treatment of both solid organ transplantation and autoimmune disease. It is
estimated that the market potential will exceed $4 billion annually in sales
for calcineurin inhibitors such as voclosporin by 2010.
    Voclosporin is a next generation calcineurin inhibitor, which recently
completed a Phase 2b North American trial for the prevention of kidney
rejection following transplantation. An extension to the Phase 2b trial and a
combined Phase 3 European/Canadian trial for the treatment of moderate to
severe psoriasis are ongoing. Our partner, Lux Biosciences, is currently
conducting three separate Phase 2/3 pivotal trials investigating voclosporin
(referred to as LX211 by Lux) for the treatment of uveitis. Voclosporin has
also entered First-in-Man trials as the drug utilized in the CINATRA(TM) Drug
Coated Coronary Stent system developed by the Company's partner, Atrium
Medical Corporation.
    Isotechnika Inc. is a publicly traded company on the Toronto Stock
Exchange under the symbol "ISA". More information on Isotechnika can be found
at www.isotechnika.com or www.SEDAR.com.

    Forward-Looking Statements
    --------------------------
    This press release may contain forward-looking statements. Forward
looking statements, including the Company's belief as to the potential of its
products, the Company's expectations regarding the issuance of additional
patents and the Company's ability to protect its intellectual property,
involve known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the forward
looking statements. Such risks and uncertainties include, among others, the
availability of funds and resources to pursue research and development
projects, the ability to economically manufacture its products, the potential
of its products, the success and timely completion of clinical studies and
trials, the Company's ability to successfully commercialize its products, the
ability of the Company to defend its patents from infringement by third
parties, and the risk that the Company's patents may be subsequently shown to
be invalid or infringe the patents of others. Investors should consult the
Company's quarterly and annual filings with the Canadian commissions for
additional information on risks and uncertainties relating to the
forward-looking statements. Investors are cautioned against placing undue
reliance on forward-looking statements.

    %SEDAR: 00010508E




For further information:

For further information: Robert Foster, Chairman & CEO, Isotechnika
Inc., Phone: (780) 487-1600 (x247), Fax: (780) 484-4105, E-mail:
rfoster@isotechnika.com; Dennis Bourgeault, Chief Financial Officer,
Isotechnika Inc., Phone: (780) 487-1600 (x226), Fax: (780) 484-4105, E-mail:
dbourgeault@isotechnika.com

Organization Profile

ISOTECHNIKA PHARMA INC.

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