Adherex Obtains Investigational New Drug 'IND' Clearance From U.S. FDA For Exherin'TM'.

RESEARCH TRIANGLE PARK, N.C. -- First US clinical trial for Exherin(TM) will proceed

Adherex Technologies Inc. (TSX:AHX), a biopharmaceutical company with a broad portfolio of products under development, today announced that the U.S. Food and Drug Administration (FDA) has cleared its Investigational New Drug (IND) application for Exherin(TM), the Company's lead cadherin antagonist, tumor vascular targeting compound; this means the Company is able to commence a U.S.-based, Phase I clinical trial of Exherin(TM). The study will take place under the direction of David J. Stewart, MD, professor in the Department of Thoracic/Head and Neck Medical Oncology at The University of Texas M.D. Anderson Cancer Center in Houston.

"Vascular targeting is a novel approach to cancer treatment," said Dr. David Stewart, Principal Investigator for the study. "This type of rationally developed, molecularly targeted therapy is a novel strategy and may offer cancer patients new hope. The study is designed to evaluate the safety and drug metabolism of the agent as well as to look at the drug's activity on the tumor and its vasculature."

This will be the first clinical study of Exherin(TM) in the U.S. In addition to further exploring the tolerability and pharmacokinetics of the drug, the clinical study will use Dynamic-MRI imaging techniques to assess the time-course of activity of Exherin(TM) on a patient's tumor and its blood supply. The study is expected to begin in July and will enroll up to 20 patients.

Exherin(TM) is a novel tumor vascular targeting agent and is a small peptide molecule that specifically disrupts the blood vessels of cancers through inhibition of the cell adhesion protein, N-cadherin, that is a critical structural component of some tumor blood vessels. Early results from the first clinical trial of Exherin(TM), being conducted at the Ottawa Regional Cancer Centre (ORCC), were recently reported at the ASCO (American Society of Clinical Oncology) meeting in New Orleans. These data indicated safety through a range of six dose levels used to date and encouraging hints of biological activity in two patients. The studies at the M.D. Anderson and at ORCC will coordinate their efforts to determine the maximum tolerated dose and evaluate the dose related pharmacology of Exherin(TM).

"It was a critical event for Adherex to begin its dialogue with the FDA about Exherin(TM), and the fact that we can proceed with this next clinical trial following clearance of our IND application by the FDA is another very important milestone for Adherex," said Dr. William P. Peters, Chairman and Chief Executive Officer of Adherex. "We are particularly delighted to have a significant oncology opinion leader in Dr. David Stewart serving as the Principal Investigator and to be conducting the study at one of the world's most respected cancer centers - the M.D. Anderson. While drug development is inherently uncertain, having top-tier investigators and centers involved offers Adherex the best chance of success. The development of a novel agent like Exherin(TM) requires investigational excellence. The skills and resources available at the M.D. Anderson will be an important contributor to the overall plans and programs that we have been putting in place for Exherin(TM) in 2004."

About Adherex Technologies

Adherex Technologies Inc. is a biopharmaceutical company with a broad portfolio of products under development. Four products are in clinical development including Exherin(TM), Adherex's lead cadherin antagonist compound, and STS, a drug that protects against severe hearing loss that is often produced by platinum-based anticancer agents. Adherex's intellectual property includes broad, interlocking protection for cadherin-mediated adhesion and represents what the Company believes to be the world's broadest portfolio of vascular targeting and cell adhesion modulating agents. The Company has offices in Research Triangle Park, North Carolina and Ottawa, Canada.

For more information, please visit Adherex's website at www.adherex.com

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Certain information contained in this news release is forward-looking and is subject to unknown risks and uncertainties. The actual results, performance or achievements of the Company may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.