Xechem International Operational Update

Market Wire, June, 2008

Xechem International (PINKSHEETS: XKEM) today announced the following information regarding its operations, financial status and associated matters.

Overall Summary: The Company's efforts have been focused on operational re-structuring in the U.S. and the oversight of its Xechem Nigeria Pharmaceuticals, Ltd. subsidiary, which is engaged in the production and sale of NICOSAN(TM), a product used in the management of the symptoms of Sickle Cell Disease (SCD). This work is being done under the supervision of Dr. Robert Swift, the Chief Oversight Officer of the Company.

U.S. Operations: As a cost saving measure and to improve research efficiency, the Company closed its operations in New Brunswick, NJ in 2007. This closure included terminations of personnel and removal and transfer of lab and production equipment valued at more than $2 million to Nigeria. Presently, the Company maintains an office in Edison, New Jersey and employs 3 people in New Jersey on a full time basis, two located at Rutgers University, and several people part time. It also utilizes laboratory space on a cooperative basis at Rutgers University and is engaged in the further development of NICOSAN(TM) and the development of 5HMF, a compound licensed from Virginia Commonwealth University for the treatment of sickle cell disease.

Xechem's scientists at Rutgers have developed a formulation of NICOSAN(TM) that can be made into tablets for sale in the USA as a nutraceutical. Xechem International has identified an FDA certified manufacturing facility in the USA that will produce NICOSAN(TM) as tablets and we expect to begin the sale of this new product in 3Q08, if there is sufficient working capital. The Company will also seek distributors for sales of this product in the rest of the world as a nutraceutical, which could generate additional cash flow in 2008. It is difficult to gauge the demand for this product in the USA and Xechem International is therefore making no revenue projections at this time.

Xechem International continues to function on debt financing and is experiencing difficulty in raising working capital necessary to run its operations, including the U.S. nutraceutical opportunity. Xechem International has generated an additional $0.6 million of debenture sales during the approximately 12-month period following the over $7.0 million of debenture sales in April 2007 (the"Prior Debentures") and estimates that it needs up to an additional $1 million to continue operations in 2008. Xechem International remains in default with respect to its past due indebtedness for past due payables and for borrowed monies borrowed during the term of previous management, which are estimated to exceed $14,000,000 in the aggregate. The majority of the over $14,000,000 in aggregate is in the form of convertible debt with attached warrants. If all of this convertible debt was converted and all corresponding warrants exercised (after giving effect to the anti-dilution ratchet triggered by conversion rights at $0.0007 per share), these additional shares would exceed 16,000,000,000.

The Company recently borrowed $28,676 from Dr. Swift and he posted a letter of credit for an additional $118,255 to secure a certain obligation of the Company, secured by an interest in its contract with Virginia Commonwealth University for the licensing of 5HMF. The loan calls for repayment within 90 days, subject to a 90-day extension. Dr. Swift has accrued compensation from the Company since his appointment as Chief Oversight Officer of approximately $152,500.

Nigerian Operations: Xechem Nigeria currently employs approximately 90 people. It has made improvements in its production processes for NICOSAN(TM) and its goal is to continue to increase sales of NICOSAN(TM) now that its production capabilities enable it to support a greater number of regular customers than was the case in 2007. Its present capacity is about 50 million Naira or about $420,000 of product per month based on a single work shift. Xechem Nigeria's current sales effort is focused on Nigerian States buying NICOSAN(TM) to distribute to the children and adults in their States. We have been fortunate that we have shipped NICOSAN(TM) to three of the thirty-six Nigerian States (Niger, Nassarawa and Ondo) so far in 2008. We estimate revenue for Xechem Nigeria was approximately $350,000 in the first quarter of 2008. The revenues in Nigeria have been sufficient to support day-to-day operations (before debt service) and certain extra-ordinary expenses, but not sufficient to repay any of its indebtedness to Xechem International, NEXIM Bank or UPS Bank.

Litigation - USA: The Company is subject to various outstanding lawsuits. These include the litigation previously disclosed regarding claims for payment of monies by each of Dr. Ramesh Pandey, Dr. Renuka Misra and Bhuwan Pandey. More recently the following additional legal proceedings have been instituted: (i) an action in state court by a laboratory services and materials company, seeking in excess of $325,000 for certain services allegedly performed on behalf of the Company; (ii) an action in state court by a leasing company seeking in excess of $20,000 for the balance due on an equipment lease, plus costs and fees; and (iii) actions in small claims court by: (a) a former landlord for the payment of utilities and removal of hazardous substances; and (b) a supplier of office supplies.