Forbes signs agreement with food company

Business Wire, March 18, 1997

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 18, 1997-- FORBES MEDI-TECH (VSE:FMI.) Further to the news release of March 11, 1997 the Company has entered into a Letter Agreement with an international manufacturer and distributor of food products ("Manufacturer") with regards to the possibility of entering into a License Agreement in respect to the utilization of Forbes' proprietary cholesterol lowering phytosterols in food products.

The Manufacturer has agreed to jointly finance a clinical study and will provide a total sum of $250,000 to the Company to examine the efficacy of Forbes' phytosterols in one of the Manufacturer's food products. The trial, which will be conducted at McGill University, is expected to enroll approximately 30 hyperlipidemic patients (i.e. patients with high cholesterol levels). Results obtained during this trial will be the exclusive property of Forbes. Upon completion of the trial, Forbes will provide the results of the research to the Manufacturer and for a specific period of time, the Manufacturer will have the exclusive right to negotiate a License Agreement with the Company.

FORBES MEDI-TECH INC. is a bio-technology Company involved in the research and development of valuable pharmaceutical products from the by-products of the pulp and forest industry. In addition to actively researching forest-derived phytosterols for the use as cholesterol lowering agents, the Company is devoting its efforts to the production and commercialization of Androstenedione, a starting material used for the manufacture of various pharmaceutical steroid drugs and other "higher value" steroid products.

The statements made in this News Release may contain forward- looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. -0-

ON BEHALF OF THE BOARD OF DIRECTORS OF FORBES MEDI-TECH INC. Tazdin Esmail, President

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

CONTACT: Forbes Medi-Tech Inc.

Don Lay, 604/681-8976