News Release

News Update On The Progress Of The New Drug License Certification Testing Of Tetrodin(HT)

Date: 1998/06/23

Tetrodin(HT) is our breakthrough, NON-NARCOTIC, ANALGESIC pharmaceutical drug, developed and patented by the corporation. Tetrodin(HT) has proven to be a safe and effective treatment for all opiate (heroin, morphine, methadone, etc) addiction. Tetrodin(HT) functions well during both the primary withdrawal period and/or any follow-up treatment.

At the most recent United Nations (UN) symposium on heroin and other drug addictions, the UN estimates that today, there are approximately 190 million addicts worldwide.

During the development of Tetrodin(HT), the corporation filed and received an EPA (European Patent Approval). Simultaneously, the corporation submitted an application for a new pharmaceutical drug license with the Federal Government of China. We are instructed that it is important to report to our shareholders that we are near completion of the pre-clinical testing of Tetrodin(HT), and we are confident that the new drug license will be issued in the very near future. The following is a summary of the completed tests to date:

• Efficacy on Opiate Withdrawal
  Test: Date of completion: May 16, 1996-August 1996
  Test Institution: National Institute on Drug Dependence, Beijing Medical University
  Experiment designer: Zhang, Jiwang; Lu, Sunan
• Efficacy on Analgesic Test(IM):
  Date of completion: April 1998 – May 1998
  Test Institution: Chinese Academic Of Medical Sciences
  Experiment designer: Qu, Zhiwei; Wu Junfang
• Efficacy on Analgesic Test(IV):
  Date of completion: January 1996 – May 1996
  Test Institution: National Institute on Drug Dependence,
  Beijing Medical University
  Experiment designer: Zhang Jiwang; Lu Sunan
• Dependency Potential Test:
  Date of completion: January 1996 – June 1996
  Test Institution: National Institute on Drug Dependence,
  Beijing Medical University
  Experiment designer: Zhang, Jiwang; Zhang Kegao
• Acute Toxicity Test:
  Date of completion: February 20, 1997 – May 01, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Li, Peizhong; Sheng, Jiadi; Hong, Wenqing
• Long Term Toxicity Test:
  Date of completion: February 02, 1997 – August 01, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Hong, Wenqing
• Repetitive Toxicity Test:
  Date of completion: March 01, 1997 – July 30, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Wang, Aiping
• Embryotoxicity and Teratogenesis Test:
  Date of completion: March 03, 1997 – July 28, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Shi, Xiaochun
• Chromosomal Aberration Test:
  Date of completion: January 01, 1997 – June 30, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Wang, Zhiqiao
• Micronucleus Growth Rate Test:
  Date of completion: March 17, 1997 – May 30, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Wang Zhiqiao
• Intramuscular Irritation Test:
  Date of completion: May 01, 1997 – July 25, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Peng, Shuangqing
• Somatic Cell Growth Rate Test:
  Date of completion: February 20, 1997 – June 30, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Wang, Zhiqiao
• Generalized Hypersensitivity Test:
  Date of completion: May 01, 1997 – June 30, 1997
  Test Institution: National Evaluation Centre of New Drug Safety in Beijing
  Experiment designer: Peng Shuangqing

We are also expecting that the signing of the contract that has been in negotiation for the last few months, between Beijing Aiqite Distribution Ltd. and the corporation is imminent. Our president, Mr Frank Shum has been requested by the heads of the Research and Detoxification Centers and the Chinese Coordination Office Of Law, Economics and Technologies to attend meetings this week in Beijing.

Per: Donna Shum, Corporate Secretary