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Isotechnika Inc. (ISA.TO) Acquires Breath Kit Manufacturing Business 
10/19/2005 5:11:20 PM

EDMONTON, Aug. 4 /PRNewswire-FirstCall/ -- Isotechnika Inc. announced today its wholly owned subsidiary Isodiagnostika Inc. has acquired the breath kit manufacturing business from its former exclusive manufacturer Altachem Pharma Ltd. The purchase price of $500,000 CDN is comprised of a $300,000 upfront payment with the remaining $200,000 to be paid in the form of future royalty payments based on kits produced.

The purchase which includes the exclusive manufacturing contract will allow the Company to explore additional marketing and business development opportunities for both the Helikit(TM) and the Diatest(TM) with the objective of increasing sales in the future.

"This acquisition allows Isotechnika to continue to streamline its diagnostic breath kit business," stated Joseph Koziak, Isotechnika's Executive Vice-President. "The purchase will enable Isotechnika to produce the necessary quantities of its breath-based diagnostic kits to meet the demands of a growing international client base in a cost-effective and efficient manner. Additionally, it will facilitate the Company meeting the FDA requirements for clinical trials with the Diatest(TM) in the United States."

About Isotechnika Inc. ----------------------

Isotechnika Inc. is an international biopharmaceutical company headquartered in Edmonton, Alberta, Canada. Drawing upon its expertise in medicinal chemistry and immunology, the Company is focused on the discovery and development of novel immunosuppressive therapeutics that are safer than currently available treatments. Its entrepreneurial management and world-class team of scientists are building a pipeline of immunosuppressive drug candidates for use in the prevention of organ rejection in transplantation and in the treatment of autoimmune diseases. Isotechnika looks to become the leader in development of immunosuppressant therapies.

Isotechnika's lead drug, ISA247, presently referred to as trans-ISA247, is an immunosuppressant that has successfully completed a Phase II trial for psoriasis and Phase IIa trial for kidney transplantation. Isotechnika recently expanded its product pipeline by developing two additional novel immunosuppressive compounds, TAFA-93 and TKB662. TAFA-93 is a novel small molecule mTOR inhibitor, a class of drugs currently used in the prevention of organ rejection in transplantation and as a coated stent therapy in the treatment of coronary artery disease. Pre-clinical studies of TKB662 have demonstrated inhibition of T cell and B cell activation and proliferation through multiple mechanisms of action including the inhibition of lymphocyte phosphorylation activity. As both TAFA-93 and TKB662 have distinct mechanisms of action from calcineurin inhibitors such as ISA247 they have the potential to be administered as complementary therapies in both prevention of organ rejection and treatment of autoimmune diseases. Isotechnika Inc. is a publicly traded company on the Toronto Stock Exchange under the symbol ISA. More information on Isotechnika can be found at http://www.isotechnika.com/.

About Isodiagnostika Inc. -------------------------

Isodiagnostika Inc. a wholly owned subsidiary of Isotechnika Inc. develops and commercializes diagnostic test kits utilizing stable isotopes.

The Helikit(TM), a 13C urea breath test for the detection of Helicobacter pylori was developed by Isodiagnostika Inc. Helicobacter pylori, (H. pylori) is strongly associated with the presence of gastric and duodenal ulcers. The Helikit is sold in Canada and exported through a network of distribution companies worldwide.

Isodiagnostika has recently developed the Diatest(TM), a stable isotope breath test for the detection of insulin resistance. The Diatest(TM) is expected to be made available to primary care physicians in Canada by late 2004.

In addition to these breath-based kits, Isodiagnostika has developed and manufactured the Isomax family of non-dispersive infrared spectrometers. These point-of-care instruments provide immediate on-site analysis of the diagnostic kits developed by the company. Isodiagnostika will continue to develop and license novel innovative diagnostic products to expand its current product line.

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.

Isotechnika Inc.

CONTACT: Joseph Koziak, Executive Vice-President, Isotechnika Inc.,Phone: (480) 329-5129, Fax: (480) 505-0545, Email: jkoziak@isotechnika.com;Stephanie Gillis-Paulgaard, Manager, Corporate Communications, IsotechnikaInc., Phone: (780) 487-1600 extension 243, Fax: (780) 484-4104, Email:sgillispaulgaard@isotechnika.com


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