Xechem International Operational Update

Market Wire, June, 2008

Litigation - India: The Company is currently still in settlement discussions in India with respect to stock ownership of Xechem India. A resolution of this litigation would facilitate the Company's ability to bring current its financial statements and required public filings with the Securities & Exchange Commission.

Financing and Reporting: While the Company believes the opportunities for Xechem Nigeria remain very positive and the future opportunity for NICOSAN(TM) in Nigeria and the rest of the world remains, there is a substantial risk that Xechem International will not be able to obtain sufficient proceeds from capital raising efforts or other sources to enable it to continue to operate as a going concern. There is a substantial risk that it will be required to seek protection from creditors through court supervised reorganization or other proceedings in the event it is unable to raise sufficient additional capital in the very near future. The Company is exploring all of its options, including possible funding through the sale of debt or equity interests by Xechem Nigeria, the raising of debt or equity in the United States through Xechem International, the possible sale of some or all of the business of the Company or the possible reorganization of the Company through bankruptcy in the event that it is unsuccessful in its other efforts. The Company has consulted with special counsel regarding a possible reorganization should it determine that it has no other viable means of financing its operations.

On May 30, 2008 the Company received a letter from the Securities & Exchange Commission dated May 14, 2008 advising that due to the Company's failure to remain current with its public filing requirements under the Securities & Exchange Act of 1934, the Commission will seek to deregister the Company if the matter is not remedied within 15 days following the date of the letter. The Company has sent a response to the Commission requesting additional time to come in compliance with the reporting requirements and is in the process of seeking to address the matters that have precluded it from making such filings, including seeking the additional funds necessary to enable it to finance the cost of bringing its filings current. In the event the Company is unsuccessful in bringing its filings current, its stock will be deregistered from trading.

About Xechem

Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD). Its recent focus and resources have been directed primarily toward the development and launch of NICOSAN(TM). In addition to NICOSAN(TM), Xechem is also working on another sickle cell compound, 5-HMF, which it has licensed from Virginia Commonwealth University.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks and uncertainties. Such risks include the risk that operations of the Company could be disrupted due to the chronic limited availability of funds to meet ongoing obligations and that the Company may be required to seek protection from creditors.