Forbes Medi-Tech Announces Next Steps in Pharmaceutical Development and Corporate Restructuring

Market Wire, February, 2007

Forbes Medi-Tech Inc. (TSX: FMI)(NASDAQ: FMTI) today announced the next steps for its pharmaceutical development program and restructuring measures in R&D to extend the Company's working capital and optimize the Company's remaining capital resources. Based on the results from the recently completed US Phase II trial, the Company's immediate pharmaceutical objective is to out-license its cholesterol-lowering drug, FM-VP4. The results, released in December 2006, highlighted several key points that make FM-VP4 an attractive licensing opportunity:

- Clinically significant results

- Dose Response - 5% at 450mg/day and 9% at 900mg/day implies a greater efficacy at higher doses

- Excellent safety profile

- Strong market opportunity for alternative therapies for cholesterol reduction

Focused on out-licensing FM-VP4 and subsequently eliminating related R&D expenses, the Company has restructured its pharmaceutical development efforts. Effective March 1, 2007, Forbes will reduce its staff (primarily R&D) in Canada by 20% while drug discovery and development efforts focused on the recently acquired FM-TP Series of Compounds will be undertaken at the Company's new facility in San Diego, California. With the identified cost-cutting measures, planned expenditures in R&D and anticipated revenue to be generated by the Company's ingredient business, Forbes considers its working capital will be sufficient to finance operations through the second quarter of 2008 versus the end of 2007 as noted in previous news releases.

The re-focused pharmaceutical development program will concentrate on the FM-TP Series of Compounds targeting Metabolic Syndrome and its underlying disease states such as diabetes, the systemic inflammation that drives Metabolic Syndrome, and inflammatory lung disease. The new compounds and related indications include:

Diabetes

FM-TP2000 series - VPAC2 agonists exert their effects through a separate receptor pathway than incretinin mimetic drugs like GLP-1 agonists ((i)Byetta®), and DPP-IV inhibitors ((ii)Januvia®). By targeting selective VPAC2 receptors, the FM-TP2000 series of analogs are designed to mimic the natural, neuronal signal, rather than the hormonal one, to stimulate beta cells to release insulin in a glucose-dependent fashion. This provides an alternative therapeutic approach, which could achieve benefits similar to Byetta, but may also be complementary in effect.

FM-TP4000 series - Apoptosis inhibitors target the treatment of diabetes by preventing beta cell loss in the pancreas and preserving their insulin secreting activity. By inhibiting this pathway, the early stage FM-TP4000 series of compounds may also promote the proliferation of beta cells and block insulin resistance. This has the potential to address a major clinical unmet need in treating type II diabetes in preserving beta cell function.

FM-TP5000 series - ACC2 Inhibitors are selective small molecules that block acetyl-CoA carboxylase, which promotes fatty acid oxidation. By accelerating fat burning, the early stage FM-TP5000 series of compounds may slow/block the progression of obesity and diabetes.

Inflammatory Lung Disease

FM-TP3000 series - VPAC2 agonists have bronchodilating, and anti-inflammatory effects. By targeting VPAC2 receptors, the FM-TP3000 series of compounds are designed to suppress the release of inflammatory mediators (TNF-alpha, IL-12), as well as suppressing the eosinophil response to stimuli. This provides an alternate therapeutic approach to treating asthma, chronic obstructive pulmonary disease (COPD), and Pulmonary Arterial Hypertension (PAH).

The Company's strategy is to capitalize on the compounds' intrinsic value through collaborative agreements and upfront milestone payments at an early stage. Charles Butt, President & CEO of Forbes, will be presenting information related to the Company's corporate strategy including the FM-TP Series of Compounds at the BioCEO Conference in New York on Wednesday, February 14, 2007 at 10:30amET at the Waldorf Astoria.

Reducol(TM) Sales - International Success

Sales of the Company's cholesterol-lowering ingredient, Reducol(TM), continue to expand through product launches in international markets. While success, to date, has been primarily achieved in Europe as highlighted by recent introductions in Portugal and France, the Company will be placing a greater emphasis on the US market in 2007. Revenue guidance for the Company's ingredient business will be issued later in the first quarter of 2007.

About Forbes Medi-Tech Inc.

Forbes Medi-Tech Inc. is a life sciences company dedicated to the research, development and commercialization of innovative products for the prevention and treatment primarily of cardiovascular disease (CVD). Our vision is to develop and market products along a treatment continuum that consumers, healthcare professionals and specialized research and healthcare institutions will identify, recommend and seek. Our business strategy is to develop and commercialize proprietary compounds to address the unmet needs of patients within the cardiovascular disease and related markets.