Adherex Technologies Reports Year End 2004 Results.

RESEARCH TRIANGLE PARK, N.C. -- Adherex Technologies Inc. (TSX: AHX)

- Company highlights strengthened balance sheet, enabling increase in clinical development activities -

Adherex Technologies Inc. (TSX: AHX), a biopharmaceutical company with a broad portfolio of oncology products under development, today reported its financial results for the fiscal year ended June 30, 2004.

"I am pleased with the progress we have made this year," said William P. Peters, M.D., Ph.D. "Last year, the Company was struggling financially and had no major institutional investment. Today, Adherex is well capitalized and is systematically developing its pipeline of cancer-focused pharmaceuticals with the goal of maximizing shareholder value. We have also taken initial steps into the U.S. financial markets, a key part of our corporate growth strategy, through last week's filing of a registration statement with the Securities and Exchange Commission."

Financial Update

The net loss for the year ended June 30, 2004 was $11.6 million, or $0.10 per share, compared to a loss of $8.3 million, or $0.13 per share, for the year ended June 30, 2003. Operating expenses totaled $12.6 million, an increase of 39% over the same period last year. These operational expenses primarily reflect increased General & Administrative expenses related to the Company's relocation of its executive offices to the U.S. and hiring of critical personnel, as well as increased amortization expenses reflecting the first full year of amortization of the intellectual property rights purchased from Oxiquant, Inc.

Cash, cash equivalents and short-term investments amounted to $27.7 million as of June 30, 2004 compared to $3.2 million as of June 30, 2003, with a corresponding increase in working capital to $26.9 million. The increased cash balance reflects financings completed in December 2003 and May 2004.

Corporate Update

During and subsequent to the 2003-2004 fiscal year, Adherex achieved critical financial, strategic and operational milestones, including:

- Filing of a registration statement with the U.S. Securities and
  Exchange Commission, the first step towards listing our common
  stock on the American Stock Exchange.
- Completion of two major financings, one in December 2003 for $21.6
  million and one in May 2004 for $12.4 million. These financings
  brought the first significant institutional investment into the
  Company, including HBM Bioventures, Orbimed Advisors and Vengrowth
  Life Sciences, and provided Adherex with the financial means to
  advance its drugs through clinical development.
- Receipt of Orphan Drug Designation from the FDA for the use of STS
  in the prevention of hearing loss in children receiving platinum-
  based chemotherapies, which may provide seven years of market
  exclusivity once the product is FDA approved.
- Reporting of the first Phase I clinical data on Exherin(TM), which
  demonstrated that in dosages used thus far, Exherin(TM) has been
  well tolerated, has satisfactory pharmacology in man, and,
  encouragingly, has shown hints of biological activity, including
  tumor necrosis (death within the central part of the tumor).
- Activation of the Company's U.S. Investigational New Drug
  application for Exherin(TM), enabling Adherex to initiate an
  additional Phase I clinical trial site at the MD Anderson Cancer
  Center.
- Hiring of key personnel, including James A. Klein, Jr., Chief
  Financial Officer, a seasoned pharmaceutical and biotechnology
  finance executive with significant financing experience in publicly
  traded companies, and Dr. Rajesh K. Malik, Chief Medical Officer, a
  pediatric oncologist who worked on the global clinical development
  strategies for Bristol-Myers Squibb and EMD Pharmaceuticals, the
  U.S. affiliate of Merck KGaA.
- Establishment of a distinguished Scientific and Clinical Advisory
  Board, whose collective oncology expertise will help guide the
  optimal development of Adherex' portfolio of cancer drug
  candidates.

Conference Call

Adherex will host a conference call at 10:00 a.m. EDT on Wednesday,
September 22, 2004 to review the financial results for the fiscal
year ended June 30, 2004. This call will be webcast live via the
Internet at www.adherex.com/ir. The event will also be archived and
available for telephone replay through September 29, 2004 and webcast
replay through December 22, 2004.

Live Participant Dial In (Toll Free): 877-407-8035
Live Participant Dial In (International): 201-689-8035
Replay Number (Toll Free): 877-660-6853
Replay Number (International): 201-612-7415
Replay Passcodes (both required for playback):
Account #: 1628
Confirmation #: 118547

About Adherex Technologies

Adherex Technologies Inc. is a biopharmaceutical company dedicated to the discovery and development of novel cancer therapeutics. We aim to be a leader in developing innovative treatments that address important unmet medical needs in cancer. We currently have four products in the clinical stage of development including Exherin(TM) and sodium thiosulfate (STS). Exherin(TM), our lead biotechnology compound, is an angiolytic that selectively targets established blood vessels that feed solid tumors. STS, a drug from our specialty pharmaceuticals pipeline, protects against the disabling hearing loss that can often result from treatment with platinum-based chemotherapy drugs. With a diversified portfolio of unique preclinical and clinical-stage cancer compounds and a management team with expertise in identifying, developing and commercializing novel cancer therapeutics, Adherex is emerging as a pioneering oncology company. For more information, please visit Adherex' website at www.adherex.com.

ADHEREX TECHNOLOGIES INC.
                     Financial Highlights
(Canadian dollars in thousands except per share amounts)

                                                     As of June 30,
                                                   2004       2003
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Condensed Consolidated Balance Sheets
Assets:
Cash, cash equivalents and
 short-term investments                         $27,748     $3,198
Other current and long-term assets                1,759      2,113
Acquired intellectual property rights            26,132     29,252
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Total Assets                                    $55,639    $34,563
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Current liabilities and shareholders' equity:
Accounts payable and accrued liabilities         $1,966     $1,401
Other current and long-term liabilities             124      1,847
Future income taxes                               9,552     10,692
Total shareholders' equity                       43,997     20,623
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Total Liabilities and Shareholders' Equity      $55,639    $34,563
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                                               Years Ended June 30,
                                                   2004       2003
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Condensed Consolidated Statements of Operations
Operating Expenses:
    Research and development                     $4,783     $4,145
    General and administration                    4,658      3,014
    Amortization of intellectual property         3,120      1,910
Interest (income) expense - net                     227        (91)
Recovery of future income taxes                  (1,140)      (698)
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Net loss                                       ($11,648)   ($8,280)
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Net loss per share, basic and diluted            ($0.10)    ($0.13)
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This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.