Forbes Medi-Tech and Novartis Consumer Health Sign Strategic Alliance and Exclusive Master License Agreement

Business Wire, April 19, 1999

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 19, 1999--

FORBES MEDI-TECH (TSE:FMI.)(VSE:FMI.) NOVARTIS (OTC BB:NVTSY) Forbes Medi-Tech Inc. ("Forbes") (TSE: FMI) Monday announced that it has signed a Strategic Alliance and exclusive Master License Agreement with Novartis Consumer Health AG ("Novartis") regarding Forbes' unique plant-based sterol composition FCP (Phytrol(TM)), a potential functional food ingredient for lowering cholesterol. A letter of intent regarding this agreement was signed and announced last month.

Under the Agreement, Novartis will have exclusive worldwide rights to use or sub-license Phytrol(TM) for use in functional foods, dietary supplements and over-the-counter products. Forbes will receive upfront payment, royalties and milestone payments. Forbes will be responsible for ingredient research and manufacturing in its collaboration with Novartis. Novartis will be responsible for clinical trials, regulatory approvals and commercialization of products.

The Agreement is for a term of five years, with a provision for successive two-year renewal periods. The Agreement contains clauses whereby either party can terminate the Agreement upon the occurrence of certain events. Further business or financial terms were not disclosed.

ON BEHALF OF THE BOARD OF DIRECTORS OF FORBES MEDI-TECH INC.

Tazdin Esmail, President & CEO

NOVARTIS CONSUMER HEALTH AG is a division of Novartis SA, a world leader in Life Sciences with core business in Healthcare, Agribusiness and Nutrition. Headquartered in Basel, Switzerland, Novartis SA employs about 87,000 people and operates in over 100 countries.

FORBES MEDI-TECH INC. is a Vancouver-based biotechnology company dedicated to research, development and commercialization of pharmaceutical and nutraceutical products. By extracting plant sterols from tall oil soap, a pulping by-product, Forbes is developing cholesterol-lowering agents to be used both as pharmaceutical therapeutics and functional food ingredients, in the battle against heart disease. Forbes is also developing innovative fermentation technology that converts plant sterols into pharmaceutical fine chemicals, essential in the manufacturing of various pharmaceutical steroids.

CardioRex(TM) and Phytrol(TM) are trademarks of Forbes Medi-Tech Inc.

This news release may contain certain forward-looking statements. There can be no assurance that the Strategic Alliance and Master License Agreement will create economic benefit for the Company or its shareholders. Further, the business of the Company is subject to numerous risk factors. Exemption from registration pursuant to Rule 12(g)3-2(b) 82-3139.

The Toronto and Vancouver Stock Exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this News Release.