VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2008) - Forbes Medi-Tech Inc. (TSX: FMI)(NASDAQ: FMTI)(NASDAQ: FMTID) (“Forbes” or the “Company”) today announced that, as part of its continuing reorganization plan, it has entered into an agreement with a private investor (the “Investor”) to reorganize Forbes Medi-Tech Operations Inc. (“FMTO”), a wholly-owned subsidiary of Forbes. The Investor is to make an investment of $3 million in a convertible debenture of FMTO. All of the assets, liabilities and operations of FMTO, including the proceeds from the issue of the convertible debenture, are to be transferred to Forbes, which will continue to carry on the business previously carried on by FMTO. The debenture is convertible into 35% of the voting common shares and all of the non-voting common shares of FMTO, representing 79% of the issued and outstanding common shares of FMTO at the time of completion of the transaction. The transaction is expected to close on or before April 30, 2008. Completion of the transaction is subject to the satisfaction of certain conditions. Following completion of the transaction, Forbes and the Investor will source and pursue other opportunities to maximize the value of their respective interests in FMTO. Subject to certain conditions, the Investor has agreed that Forbes will receive a minimum of $800,000 from these other opportunities within one year of completion of the transaction.
