News Release

First Distribution Contract For The Sale Of Tetrodin(HT) Signed June 26, 1998 In Beijing

Date: 1998/06/30

The Vancouver Office of the corporation received confirmation today from our president, of the signing of the first distribution contract for Tetrodin(HT). This contract has been in negotiation for the past months and we are pleased to report this signing, knowing that this contract is and will be an important long term contributing factor to the corporation’s success.

The main points of this contract are:

1. 10 year renewable.
2. Guaranteed payment on the product shipping day.
3. A guarantee of minimum purchase of approximately Cdn$21,000,000.00 of Tetrodin(HT) per year each year of the contract.
4. The distributor is committed to actively promoting Tetrodin(HT) to the approximately 500 hospitals and clinics that it has the exclusive right given to it by the CCOL.
5. The Distributor will have in place a bank guarantee issued from the National China Bank for 3 months of the annual guaranteed purchase to ensure our company against any interruption to payment of product over the life of the agreement.
6. This contract is co-signed by both the general manager of the distribution company and by the senior official of the China Co-ordination Office of Law, Economics and
   Technologies(CCOL). This demonstrates the central government’s support to see Tetrodin(HT) in use as soon as possible.

The next keystone event will be the issue of the new drug license for Tetrodin(HT) for China. This will be the date when this contract becomes active as we will then begin the sales of Tetrodin(HT).

These following comments by our president accompanied the faxed distribution contract today "I have signed the first contract for the sale and distribution of our patented new drug Tetrodin(HT) today in Beijing. This contract has taken several months to negotiate. There are several key issues within this contract that are considered to be ground breaking in China and a number of points that gives our company good comfort, as a manufacturer of a proprietary product. I expect that this contract ensures our future financial success and will be the benchmark in our progress toward our international success with Tetrodin(HT)" Frank Shum.

Per: Donna Shum, Corporate Secretary