Another Member of Skye PharmaTech Inc.'s Biotech Incubator Program Completes IPO.

Business Editors

TORONTO--(BUSINESS WIRE)--March 24, 2000

(CANADIAN DEALING NETWORK:SKYE.) (CANADIAN DEALING NETWORK:SKYE.WT.) Skye PharmaTech Inc. announced today that Arius Research Inc. successfully completed its Initial Public Offering. The company raised gross proceeds of $7.7 million. Arius Research Inc. is a biotechnology company that is developing a class of drugs for individualized cancer therapy. Current research and development activities are focused on production and testing of its monoclonal antibodies related to breast cancer and melanoma. These antibody drugs will enable oncologists to treat specific tumors for individual cancer patients.

Skye's strength as a research company and extensive experience in converting research into commercial products has allowed it to act as a biotech incubator to other, early stage companies. During the past year, Skye Pharmatech Inc. has provided scientific and administrative support to various companies in exchange for equity positions. Arius Research Inc. has issued Skye 400,000 common shares and 400,000 warrants. Arius is the latest company from the Skye Biotech Incubator Program to successfully establish itself as its own public R&D company.

"Skye's Biotech Incubator Program began as a result of various individuals and companies approaching us with their scientific business plans and looking for assistance in developing and commercializing their ideas. Skye's management team realized that mentoring these companies would also represent a significant business opportunity that has already proven to be beneficial for all parties involved," stated Dr. George Jackowski, President and Chief Scientific Officer. " Skye's Biotech Incubator Program creates a unique working environment for all parties that involves the sharing of scientific expertise, creation of intellectual property, and access to state of the art research facilities that would not otherwise be available to the junior companies. The equity positions and fees that Skye receives in exchange for its mentoring creates significant added value for Skye's shareholders. "

Arius Research Inc. is the second company to go public with the support of Skye Pharmatech. Earlier this year, Toxin Alert Inc. was the first company from the Skye Incubator Program to go public. Toxin Alert Inc. is a research and development company engaged in the development of antibody based diagnostic packaging materials primarily for the food and medical industries.

Toxin Alert raised gross proceeds of $4,400,000 from its IPO and trades on Canadian Dealing Network under the symbols "TOXN", "TOXN.WT.A" and "TOXN.WT.B".

Skye Pharmatech Inc. capitalizes on its unique antibody-based expertise to create and develop innovative diagnostic and risk assessment tests for applications in preventative medicine and patient management. Skye has developed rapid format, point-of-care (POC) tests for the diagnosis of stroke that will be manufactured and distributed by Genzyme Diagnostics, a US based pharmaceutical and diagnostic company. Skye PharmaTech Inc.'s common shares and purchase warrants currently trade on the Canadian Dealing Network ("CDN") under the symbols "SKYE" and "SKYE. WT". There are currently 3,507,631 shares and 3,713,330 warrants issued and outstanding.