PharmaGap Inc. Reports Positive Safety Testing; Development of Key Diagnostic Tool

OTTAWA, ONTARIO--(Marketwire - August 03, 2010) - PharmaGap Inc. (TSX VENTURE: GAP)(OTCBB: PHRGF) (“PharmaGap” or “the Company”) today announced favorable safety and pharmacokinetic results in rats with its lead cancer drug GAP-107B8. Specifically, rats tolerated single intravenous doses of GAP-107B8 at dose levels which produced peak plasma concentrations that are sufficient to kill cancer cells in vitro.

Studies with GAP-107B8 are being carried out at the National Research Council’s (“NRC”) Animal Centre in Ottawa.

PharmaGap, in conjunction with Tandem Labs of San Diego, CA, and Woburn, MA has developed a method to measure GAP-107B8 concentration in rat plasma and is adapting the method for use in other species, including humans. This bioanalytical method is an important tool that allows the Company to proceed with studies designed to establish the effective dose range and optimum route of administration for GAP-107B8.

Dr. Doug Cowart, a clinical pharmacologist with Therapeutic Development Consultants, LLC, and a consultant to the Company’s Clinical Development Group, commented “One of the key technological challenges in developing successful peptide drug compounds is often to confirm the extent of in vivo exposure via suitable and sensitive methods that allow a pharmacokinetic understanding of the behavior of the peptide within the body. With this result, PharmaGap appears to have in their possession a key tool required to proceed with the additional preclinical work required to continue the path toward the development of the drug for ultimate use in humans.”

The next phase of this testing program, about to commence at the NRC, will explore the intravenous infusion of the drug at a fixed rate and sustained dose level over an extended period of time.

About PharmaGap Inc.

PharmaGap Inc. (TSX VENTURE: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap’s GAP-107B8 is a novel peptide drug that has been shown to be highly cytotoxic to numerous cancer types, including chemo-resistant cancers, in vitro. For more information on PharmaGap please visit the Company’s website at www.pharmagap.com.

Note: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein. This release contains forward looking statements that may not occur or may change materially.