INEX Provides Timeline For Spin-Out Of Tekmira Pharmaceuticals Corporation

VANCOUVER, July 18 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today that it anticipates completing the spin-out of the Company’s technology, products, cash and partnerships into Tekmira Pharmaceuticals Corporation (“Tekmira”) by the end of September 2006.

Timothy M. Ruane, President and Chief Executive Officer of INEX, said a shareholder meeting to approve the transaction will occur September 20, 2006. Shareholders of record on August 11, 2006 will be eligible to vote. Meeting materials will be mailed to shareholders in August 2006.

Ruane said the spin-out transaction is the culmination of a number of recent achievements for the Company. “INEX has been very successful over the past number of months including closing the Hana Biosciences, Inc. product development partnership, announcing and then expanding the collaboration with Alnylam Pharmaceuticals, Inc. and eliminating our convertible debt.”

“We are confident that Tekmira will become a company with all the attributes necessary to take INEX’s promising products forward into clinical trials, to work with and benefit from the product development achievements of INEX’s existing partners and to build significant value for shareholders,” Ruane said.

As previously announced, the spin-out of Tekmira will take place by way of a Plan of Arrangement between INEX and its shareholders. Highlights of the spin-out include transferring to Tekmira:

- All of the pharmaceutical assets from INEX’s two technology platforms, Targeted Chemotherapy and Targeted Immunotherapy; - All of INEX’s cash; - INEX’s pharmaceutical partnerships with Hana Biosciences, Inc. and Alnylam Pharmaceuticals, Inc.

All of the Tekmira shares will be distributed to INEX common shareholders and INEX’s current management team and employees will join Tekmira in the same positions they occupy in INEX. The Tekmira spin-out is subject to all necessary approvals including shareholder, regulatory and court approval.

The goals for INEX and Tekmira for the second half of 2006 include: - Supporting Hana to advance Marqibo into a phase 3 clinical trial and advance INX-0125 into a phase 1 clinical trial; - Supporting Alnylam in evaluating INEX’s liposomal drug delivery technology for the systemic delivery of Alnylam’s RNAi therapeutic products directed towards multiple gene targets; - Presenting additional preclinical data for INX-0167 in non-human primate studies demonstrating its potential as a potent immune stimulant; and - Initiating formal toxicology studies for INX-0167 in order to file an Investigational New Drug Application in 2007 to begin clinical development. About INEX

INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX and this news release can be found at www.inexpharm.com.

Forward Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words “believes,” “may,” “plans,” “will,” “estimate,” “continue,” “anticipates,” “intends,” “expects,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Inex’s stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Inex’s products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

INEX’s common shares are traded on the Toronto Stock Exchange under the trading symbol “IEX”.

CONTACT: Contacts for Inex Pharmaceuticals Corporation: Investors, Ian Mortimer, Vice President, Finance and Chief Financial Officer, Phone: (604) 419-3200; Media, Karen Cook Boas, James Hoggan & Associates Inc., Phone: (604) 739-7500, Email: kcook@hoggan.com

Inex Pharmaceuticals Corporation

CONTACT: Contacts for Inex Pharmaceuticals Corporation: Investors, IanMortimer, Vice President, Finance and Chief Financial Officer, Phone: (604)419-3200; Media, Karen Cook Boas, James Hoggan & Associates Inc., Phone:(604) 739-7500, Email: kcook@hoggan.com