IntelliPharmaCeutics Announces Equity Investment by Par Pharmaceutical

    In Separate Agreement, IntelliPharmaCeutics to Collaborate with Par in
    the Development and Marketing of Controlled Release Generic Drug Products

    TORONTO, Aug. 1 /CNW/ - IntelliPharmaCeutics Ltd. today announced that
Par Pharmaceutical (NYSE:   PRX) has made a significant equity investment in the
Company. IntelliPharmaCeutics Ltd., through its operating company,
IntelliPharmaCeutics Corp., develops, licenses and markets both new and
generic controlled-release pharmaceutical products. Par Pharmaceutical is a
major developer and distributor of generic and branded drugs in the U.S.
    Under the terms of the investment, Par Pharmaceutical will acquire a 4.2%
equity interest in IntelliPharmaCeutics, on terms typical for an investment of
this sort and magnitude. The funds will be used by IntelliPharmaCeutics Corp.
for general corporate and working capital purposes.
    IntelliPharmaCeutics Corp. today also announced that it has signed a drug
development collaboration with Par Pharmaceutical. Under the arrangement,
IntelliPharmaCeutics will apply its proprietary technology to the formulation
and development of four generic drug products (ANDA's) which are bioequivalent
to significant branded drugs with substantial commercial sales in the United
States. The terms of the deal provide that Par will be responsible for certain
costs of development, and that IntelliPharmaCeutics will receive substantial
milestone, incentive and success-based payments, together with a share of the
profits of commercialization. Par will be responsible for the distribution of
the drugs in the United States. These four new collaborations bring the total
of drugs under development with Par to six, and represent the continuation and
solidification of a very strong commercial relationship between the companies.
    Dr. Isa Odidi, CEO and Co-Chief Scientific Officer of
IntelliPharmaCeutics, expressed his deep satisfaction with the expanding
relationship: "We are very pleased that Par believes enough in the present
value and future prospects of the Company that they are prepared to make an
equity investment of this magnitude and we are proud to have such a
significant drug developer and distributor as Par as a collaboration partner.
We view the completion of these new deals as a strong endorsement of our
proprietary technologies, of our ability to apply them to a range of small
drug molecules and of our willingness to engage in dynamic, cooperative and
productive relationships with our development partners. We are confident that
we will be able to leverage these investment proceeds to substantially advance
our exciting internal pipeline products. These new products, and the
next-level technologies they will utilize, could provide the impetus to propel
the Company to the next level."

    Safe Harbor Statement

    Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. To the extent any statements made in this news release contain
information that is not historical, these statements are essentially
forward-looking and as such, are subject to risks and uncertainties. Any
forward-looking statements included in this press release are made as of the
date hereof only, based on information available to the Company as of the date
hereof, and, subject to any applicable law to the contrary, the Company
assumes no obligation to update any forward-looking statements.

    The securities offered have not been registered under the United States
Securities Act of 1933, as amended and may not be offered or sold in the
United States absent registration or an applicable exemption from

For further information:

For further information: Isa Odidi, Chief Executive Officer and Co-Chief
Scientific Officer, IntelliPharmaCeutics Corp., 30 Worcester Road, Toronto,
Ontario, M9W 5X2, Tel: (416) 798-3001, Fax: (416) 798-4276

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