Quest PharmaTech to Receive $3,000,000 to Develop Oncology Products Based on its SonoLight Technology



    EDMONTON, Dec. 17 /CNW/ - Quest PharmaTech Inc. (TSX Venture Exchange:
QPT) today announced that it has signed an agreement with a multinational
technology development company (the "Investor") to receive $3,000,000 to
develop oncology products based on its SonoLight Technology. Under the terms
of the agreement, Quest Pharma Tech Inc. ("Quest" or the "Company") has
already received $1,000,000; and the balance of $2,000,000 will be paid within
the next twelve months. In return for this non-equity funding, the Investor
who requested to remain anonymous, will receive 35 percent of all future net
revenue from the commercialization of Quest's oncology products. This
agreement does not preclude Quest from out-licensing the oncology applications
of SonoLight Technology to a third party.
    The Company's lead oncology product from the SonoLight platform, SL052,
is anticipated to enter a Phase I clinical trial for photodynamic therapy
treatment of prostate cancer during the second half of 2008. The Company is
also evaluating the same technology for the treatment of lung cancer and
peritoneal carcinomatosis.
    "I can't think of a better holiday present to our shareholders than
establishing an accelerated oncology development program," said Dr. Madi R.
Madiyalakan, Chief Executive Officer of Quest Pharma Tech Inc. "We are
optimistic about the potential of both our oncology products and our
dermatology program. Additionally, we believe that our partnerships with
Paramount BioSciences and KMH Co. Ltd. will help us achieve our long-term
growth objectives, including share price appreciation."

    About Quest PharmaTech Inc.

    The Corporation is a publicly traded (TSX Venture Exchange: QPT),
Alberta-based pharmaceutical company committed to build shareholder value
through discovery, 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 proprietary photodynamic and
sonodynamic therapy platform. The Company's lead product, SL017, is a topical
formulation that is currently undergoing a 90 patient clinical trial in Canada
for hair removal applications. Quest has signed an exclusive multinational
license agreement with Paramount Biosciences, a global pharmaceutical and
healthcare investment firm, to develop and market SL017 for dermatology
applications. In addition, Quest also has an agreement with KMH Co. Ltd, a
Korean pharmaceutical company, to market SL017 in Asia for hair removal
applications.

    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."

    %SEDAR: 00008400E




For further information:

For further information: Dr. Madi R.Madiyalakan, Chief Executive
Officer, Quest Pharma Tech Inc., Tel.: (780) 448-1400 (Ext. 204),
madi@questpharmatech.com. Further information about Quest Pharma Tech Inc. can
be found at: www.questpharmatech.com


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