Xechem International Completes Repurchase Of $3 Million Convertible Loan From Alembic, Limited; Alembic Surrenders 15% Equity Stake In Xechem’s Nigerian Subsidiary And Broad Royalty Rights Under New Agreement

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Jan. 12, 2006--Xechem International, Inc. (OTC BB: XKEM) Xechem International announced today it has completed a comprehensive restructuring of its $3 million convertible loan with Alembic Limited, an Indian pharmaceutical company that had invested in Xechem in 2003. At the time of the original financing, Alembic received a substantial equity stake in Xechem and its Nigerian subsidiary, Xechem Pharmaceuticals Nigeria Limited, as well as the right to receive a gross royalty of 15% of Xechem Nigeria’s total sales of NICOSAN(TM), the promising drug being developed by Xechem for the treatment of Sickle Cell Disease. Under the old financing arrangement, Alembic also was entitled to a 1% export fee for all revenues generated outside of Nigeria from the sale of the Company’s sickle cell drug, 10 million warrants to purchase Xechem’s common stock, and a right of first refusal for the distribution rights in Africa and India from the sale of its sickle cell drug. The loan had an original maturity date of April 2008, and was convertible at any time by Alembic into common stock of Xechem at a substantial discount to the then-current market price for the stock.

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