Altachem has entered into a memorandum of understanding to purchase office and manufacturing buildings (totaling 43,960 sq. ft.), less the land, in Shanghai for new operations.

"Purchasing the facility will be a strong benefit for the Altachem shareholders for moving production ahead as well as providing equity as opposed to lease payments," stated Mr. Warren Jackson, President and CEO of Canada-based Altachem Pharma Ltd.

Ownership of the Shanghai facility will ensure Altachem can manufacture and supply sufficient quantities of Bionex for local sales in China and for export to North America while controlling manufacturing costs. Bionex, a product for the potential use in various

disinfectant products and potentially inactivates HIV, hepatitis B and C, Herpes and other pathogens in blood products is exclusively licensed to Beijing Altachem Pharma Biotechnology Ltd.

Mr. Jackson also states, "Preliminary market analyses indicate a high level of interest for Bionex as a high level disinfectant. Initial estimates indicate manufacturing capacity of 10 million litres per year of Bionex disinfectant."