DRUG ROYALTY ANNOUNCEMENT.

TORONTO--(BUSINESS WIRE)--Dec. 21, 1994--DRUG ROYALTY(TSE: DRI CANADIAN DEALING NETWORK: DRII.WT.A, DRII.WT.B ) Drug Royalty Corporation Inc. reported today the passing of Alan Grieve, President and Chief Executive Officer, after a brief illness.

In 1992, Alan formulated the concept of Drug Royalty as a way to build a global pharmaceutical business by funding the development of drugs in return for royalties on the sales of drug products. Drug Royalty is now cash flow positive and has royalty interests in over fifteen drug products in various stages of development and drug development activities with strategic partner companies in Australia, the United Kingdom, the United States and Denmark.

Alan graduated from the University of London, England with an Honours Degree in Chemical Engineering and in 1954, he emigrated to Canada. He secured employment with a petro-chemical company in Sarnia, and subsequently joined the Cryovac Division of W.R. Grace. Prior to founding Drug Royalty, Alan was well known in venture capital circles where he was often involved with leading-edge technologies. In 1969, he became President of Guardian Ventures Limited, and through his involvement with that company participated in the startup financing of such well known and diverse companies as MDS Health Group, Digital Telephone Systems (now part of Harris Corporation), and Institutional Network Corporation (now a subsidiary of Reuters). In 1976, Alan continued his venture capital activities through Grieve, Horner, Brown & Asculai, and among other achievements, funded the startup of the biotechnology company, ens Bio Logicals, which specialized in the synthesis of DNA and the development of new drug entities, including the antiviral drug Gancyclovir that was eventually licensed to Syntex. In 1988, Alan became President and CEO of Ethical Pharmaceuticals North America, formed as a joint venture between MDS Health Ventures and Ethical Pharmaceuticals, a U.K.-based drug delivery company.

Alan was always actively involved in sports in his personal life. He was a member of the Georgian Peaks Ski Club in Collingwood, and he was an avid golfer. His main passion, however, was tennis, which he played at The Toronto Lawn Tennis Club, where he was President from 1970 to 1971.

Bill Garriock, Chairman of Drug Royalty, and President of Sciex, a division of MDS Health Group, has temporarily assumed the responsibilities of acting President and Chief Executive Officer. Operations will carry on under the management of Jim Webster, Vice President, Finance and Business Development, with the assistance of the Company's in-house Scientific Advisor, John McCulloch, PhD, and the Technical Advisory Board which actively aids management in the selection and review of prospects.

Alan will be sorely missed by his many friends and colleagues. He is survived by his wife, Muffie, three adult children, Ian, Michael and Kate, and one grandchild, Carter.

CONTACT: Jim Webster

             Drug Royalty Corporation Inc.
             Vice President, Finance and Business Development or
             Evemarie Tulloch, Administrative Assistant [phone]
             [phone] (Fax)