Pharmachem, Forbes Enter Purchase Agreement

VANCOUVER, British ColumbiaThe bidding for the assets of Forbes Medi-Tech Inc. (OTCBB: FMTI), the maker of the Reducol plant sterol blend, appears to have come to an end, after the original suitor, MHT LLC, declined to exercise its right to match an offer for US$4.0 million filed Aug. 16 by Pharmachem Laboratories. Forbes board of directors withdrew its recommendation that shareholders approve the purchase agreement from Aug. 5 from MHT, and instead recommended accepting the Pharmachem offer. The company has since terminated the MHT agreementand will pay a US$200,000 expense reimbursement fee to MHTand entered into an asset purchase agreement with Pharmachem.

Forbes will reconvene its annual and special meeting of shareholders Aug. 24 to consider and vote on whether to sell substantially all of the companys assets to Pharmachem, and subsequently liquidate the company. If the company completes the sale at the US$4.0 million price, it expects net proceeds of the liquidation to be in the range of Cdn$0.50 to Cdn$0.58 per share. The distribution to shareholders should occur within six months following completion of a claims procedure established under the supervision of the liquidator, Abakhan & Associates Inc. Forbes common shares will then be cancelled and de-listed from the OTCBB.