INEX'S CALIFORNIA HEARING RESCHEDULED TO JANUARY, 2007.

INEX Pharmaceuticals Corporation ("INEX"; TSX: IEX), Vancouver, has announced that the British Columbia Supreme Court has issued a favourable written ruling from the November 7 and 8, 2006 hearing with respect to the spin-out of Tekmira Pharmaceuticals Corporation ("Tekmira").

In its ruling, the Court approved the INEX Plan of Arrangement to transfer all of the company's transferable assets and liabilities to Tekmira. This includes the 2001 agreements that created Protiva Biotherapeutics, Inc. ("Protiva"), and the ongoing litigation with Protiva. The Court rejected all motions raised by Protiva to block the spin-out of Tekmira. The Court's written ruling has been posted on INEX's website at http://www.inexpharm.com.

There is also an outstanding legal dispute between INEX and Protiva in the Superior Court of California. INEX has filed a motion to dismiss the law suit initiated by Protiva on the grounds that California is an inappropriate venue to settle a dispute between two British Columbia based companies and that the law suit filed in California is nearly identical to claims filed in British Columbia Supreme Court.

The hearing in California, originally scheduled for December 15, 2006, has now been rescheduled to January 31, 2007.

On September 20, 2006 shareholders of INEX voted 99.3% in favour of spinning out all of the company's technology, products, cash and partnerships into Tekmira.

Timothy M. Ruane, president and CEO of INEX, said, "We are working to close the Tekmira spin-out as quickly as possible, and anticipate completion of this transaction by December 31, 2006. We remain confident in our legal and contractual positions versus Protiva, and we continue to make strong progress with our partners as we advance our products through development."

The dispute with Protiva relates to rights of certain drug delivery technology for the delivery of small interfering RNA ("siRNA"), a new class of oligonucleotide drugs. As part of the contractual agreements that created Protiva in 2001, INEX believes it has retained all rights to certain oligonucleotide delivery technology, including the delivery of siRNA. INEX also believes that any technology advancements made by Protiva and its collaborators or by INEX, for the delivery of oligonucleotides, are either owned by INEX or should be licensed to INEX on an exclusive, worldwide paid-up and royalty-free basis. The 2001 contractual agreements that created Protiva are posted on INEX's website at www.inexpharm.com. INEX is continuing to develop its siRNA delivery technology with its collaborator, Alnylam Pharmaceuticals, Inc., a leader in the development of therapeutics based on siRNA.

The completion of the spin-out of Tekmira will allow INEX, having no pharmaceutical assets, to complete a financing with an investor group led by Sheldon Reid, a co-founder of Energy Capitol Resources Ltd. ("Investor Group"). The Investor Group will invest up to $5.6 million in INEX by way of convertible debentures. Upon conversion of the debenture following the completion of the reorganization, the Investor Group will hold 100% of non-voting shares in INEX and 80% of the total number of shares outstanding. Therefore, current INEX common shareholders will own 20% of the equity of INEX and 100% of the Tekmira shares. The Investor Group plans to raise additional capital and acquire a new business for INEX. The money received by INEX as part of the corporate reorganization will be paid to the previous holders of INEX's convertible debt as per the note purchase and settlement agreement announced June 20, 2006.

About INEX

INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. INEX's common shares are traded on the Toronto Stock Exchange under the trading symbol "IEX."

For more information http:// www.inexpharm.com or call 604/419-3200.