MEDITECH/ELAN BIO VENTURE TO DEVELOP DISEASE SCANNERS.

Meditech Pharmaceuticals Inc. (OTCBB:MDCH), Scottsdale, Ariz. has signed an agreement with Elan Bio, an Australian company, to form a new joint venture company in the U.S., to be owned jointly by Meditech and Elan.

The new company intends to focus on commercializing and marketing both companies' technologies in the U.S. and International markets. The company's technology provides an instant, non-invasive detection of pathogens and poisons, including Aflatoxins, Anthrax, smallpox and other harmful chemical and biological agents.

"The joint venture's goal is to make these scanners available for use by the U.S. government, including the Department of Homeland Security (DHS), and private industry as soon as possible. The U.S. government plans to allocate $803 million for the DHS to develop new partnerships with the private sector to research, develop and deploy new homeland security technologies that will make America safer. In fact, the government has already provided research grants to companies, including Cree, Inc. (Nasdaq:CREE), that does not yet have marketable technologies available. Our initial research has been completed. We now have working prototype detection and prevention capabilities not only for Aflatoxins, but also for various other pathogens and poisons," said Gerald N. Kern, CEO of Meditech Pharmaceuticals, Inc.

The scanning technology is the result of a $10 million (AUD), ten-year research program. The technology uses a wavelength of light to identify hazardous biological and chemical agents. It evolved from an agricultural application used to test for aflatoxins and other carcinogenic substances in natural produce. The evolutionary outcome of this research -- a scanner -- can be inserted into mailroom conveyor belts, cradled in the hand of the [Image] user in a wand the size of a mobile phone, or placed into a water supply, and is capable of scanning air particles for hazardous biologicals. Aflatoxins affect about 80% of the world's food crops every year. The peanut industry alone loses tens of millions of dollars annually in eradicating aflatoxins from the food chain.

"Anthrax and Aflatoxin detection and protection is a huge business. The accurate identification and effective treatment of contaminated crops will not only save money for food producers, but will ensure safer produce for consumers worldwide. We are engaged in aflatoxin pilot trials with the Peanut Company of Australia, and our joint venture company, pending financing, will soon make the scanner available for U.S. producers as well," said Colin Salmond, managing director of Elan Bio.

The joint venture is contingent upon raising a minimum of $3MM US within six months. If this does not happen, either Meditech or Elan Bio has the right to terminate the agreement and all technologies will revert to each party.

Meditech is a drug development company focused on the development of human, veterinary and agricultural antimicrobial agents. Meditech was founded in 1982 as Medical Technology Corporation of America and went public via an IPO in 1983.

For more information, call 480/614-2874 or visit http://www.mdch.net.