Forbes Medi-Tech Restructures

Forbes Medi-Tech Restructures

VANCOUVER, British Columbia--Forbes Medi-Tech Inc. (TSX:FMI,NASDAQ:FMTI) restructured its operations and management sectors, effectivelylaying off more than half its workforce.

"In today's financial environment, it is important for usto retain cash and optimize our human resources while remaining focused on ourkey objectives in both our sterol commercialization initiatives andpharmaceutical development program," said Charles Butt, president and chiefexecutive officer.

As a result, the company will no longer be conducting researchon-site and will instead be outsourcing science needs to universities andcontract research organizations. In the company's last financial statement,dated Aug. 29 for the second quarter (2Q02) ended June 30, research expenseswere already being reduced, coming in at CDN$925,000 for 2Q02 compared toCDN$1.2 million in the same quarter the year prior.

Under the restructuring, Forbes also laid off 18 from its staffof 35. The company expects this will lead to an annual savings of CDN$854,000(US$547,000).

This shift in the company's operations also led to promotionsfor a few people. Laura Wessman was promoted to the newly created position ofvice president of business development, and Patricia Pracher, previouslydirector of financial services, was promoted to corporate controller.

The company (www.forbesmedi.com)also announced that it has been given an extra 180 days, or until April 14,2003, from the NASDAQ Stock Market to become compliant with NASDAQ's US$1minimum per share bid to continue to be listed on the SmallCap Market. As ofNov. 6, the company's shares were selling at US$.37 each.