Caleco Pharma Corp. Provides Corporate Update

BELLINGHAM, WASHINGTON--(Marketwire - April 01, 2010) - (OTCBB: CAEH)(FRANKFURT: T3R)(WKN: A0N9Y0) (www.calecopharmacorp.com) Caleco Pharma Corp. (the “Company” or “Caleco”), a biopharmaceutical and consumer health products company that identifies and develops biotech products, today provides an update that details recent corporate events in the later half of the first calendar quarter of 2010.

Caleco to enter worldwide biopharmaceutical and bionutritional markets in partnership with leading expert in functional foods and active ingredients derived from natural substances.

In February 2010, Caleco signed a Laboratory Facilities and Service Agreement (the “Lab Facilities and Services Agreement”) with Natac Biotech S.L. (“Natac”), a Spanish biotechnology corporation engaged in the research and development of health related products. Under the terms of the Lab Facilities and Services Agreement, Natac, through its subsidiary Natac Research, has agreed to provide Caleco with the services of senior research scientists and the associated laboratory facilities, which are located at the Universidad Autonoma de Madrid. The lab facilities are state-of-the-art facilities specifically oriented toward the identification, isolation, extraction and standardization of unique biologically active compounds from plants and oils. This coincides with Caleco’s business plan to develop health and wellness products derived from plants and oils into over the counter supplements, dermatologic products and prescription drugs.

Based in Madrid, Spain, Natac specializes in deriving functional foods and active ingredients from natural substances. Natac’s alliance with the Universidad Autonoma de Madrid, one of continental Europe’s premier biotech research facilities, provides it with access to more than 1,200 square meters of laboratory facilities.

The closing of the Lab Facilities and Services Agreement is expected to occur on or before April 19, 2010 and is subject to Caleco and Natac satisfying the closing conditions set out in the Lab Facilities and Services Agreement.

Caleco broadens OTC food supplement pipeline with new compounds targeting major public health problems including cardiovascular and metabolic syndromes affecting millions of people worldwide.

In March 2010, Caleco entered into an exclusive license agreement with Natac whereby Natac granted Caleco the exclusive right to develop, commercialize, market and distribute five compounds derived from plant extracts throughout North and South America. The License Agreement also provides that Caleco will have the right to sub-license the five compounds in North and South America.

In keeping with Caleco’s dual pathway model of product development and commercialization, Caleco anticipates that several of these newly in-licensed compounds will enter clinical testing while others will move directly into non-clinical pre-commercialization pathways as nutritional food supplements. These new compounds will be targeted at large markets where there are significant and growing health and wellness needs. Specifically, the Caleco product pipeline now includes compounds with anti-inflammatory and metabolic effects that may prove beneficial in promoting cardiovascular and metabolic health. Over 100 million people worldwide are believed to have chronic metabolic dysfunction status whom may potentially benefit from these types of supplements.

Caleco receives delivery of formulations by Cosmetic Project Management

Cosmetic Project Management, a Spanish corporation that provides product and market development support to cosmetic product manufacturers, has delivered to Caleco the commercial formulations of its Natural Hair Care Products (LamiriShampoo, LamiriHair Conditioner, LamiriHair Tonic) and Natural Skin Care Products (LamiriGel and LamiriCreme). Caleco’s dermatologic products are of particular interest due to their “natural” sourcing and potential for efficacy.

The natural cosmetic category continues to show a remarkable openness to new products, especially those that are based on natural resources and can show a benefit to health. In addition, Caleco’s management and consulting team have considerable experience in successfully bringing new products to market in this area.

“These new developments continue our aggressive movement into the nutraceutical marketplace and complement our pharmaceuticals pipeline in a way that provides for diverse product lines all based on our expertise in identifying and developing products based on natural compounds. The strategic alliance with Natac provides further confirmation that our dual-pathway commercialization plans and our unique market entry strategies are of interest to experts in the high-science pharmaceutical and over-the-counter consumer-oriented fields,” stated by John Boschert, the Chief Executive Officer of Caleco.

About Caleco Pharma Corp.

Caleco is focused on the ongoing research and development of its pipeline of over-the-counter and prescription medications including its proprietary antiviral and “Liver Health” OTC formulations. In addition Caleco is developing over-the-counter food supplements and dermatological products based on the active ingredients found in its proprietary formulation. To date, Caleco’s intellectual property covering the Liver Health formulations and derivatives consists of patent applications in the United States, Europe and Canada and four European Drug Master File applications.

Caleco’s shares are traded in the United States on the OTC Bulletin Board (OTCBB: CAEH) and in Germany on the Frankfurt Stock Exchange (WKN:A0N9Y0/ Symbol: T3R.FSE).

This press release may contain, in addition to historic information, forward-looking statements. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. In particular, there are no assurances that: (i) Caleco will be granted a patent in connection with its current patent applications in the United States, Europe and Canada; (ii) Caleco will be able to manufacture and produce its products or that its products will be effective; (iii) Caleco will be able to obtain any sales of its products; (iv) it will be able to carry out any pre-clinical or clinical trials of its “Liver Health” formulation or any of its products; (v) Caleco will be able to obtain financing in order to meet the costs of the clinical studies of its “Liver Health” formulation and any of its products; (vi) Caleco will be able to control the costs of the clinical studies of its “Liver Health” formulation or any of its products; or (vii) Caleco will be able to complete the closing of the transactions contemplated under the Lab Facilities and Services Agreement. Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release.

Caleco Pharma Corp.

John Boschert, President