Novopharm Biotech and Genesys Pharma Receive Judicial Approval to Amalgamate.

TORONTO AND WINNIPEG, MANITOBA--(BUSINESS WIRE)--Aug. 26, 1997-- Novopharm Biotech In (TSE, VSE NVO. ) Officials from Novopharm Biotech Inc. (TSE and VSE - NVO) and Genesys Pharma Inc. (VSE - GPI) are pleased to announce that they have received judicial approval from the British Columbia Supreme Court to amalgamate their companies.

Effective today, the newly merged company will operate as Novopharm Biotech and will feature expertise in cancer immunotherapy, generic biopharmaceutical development, and antisense/HIV research. Total shares outstanding of the new company will be approximately 69.2 million and will trade exclusively on The Toronto Stock Exchange under the trading symbol NVO.

Dr. Albert Friesen, President, commented, "With the conclusion of this merger we have created a highly risk-diversified, entrepreneurial biopharmaceutical company which we expect will create increased value for shareholders well into the future. Our separate platform technologies and projects are staggered to achieve near, mid, and long term potential success for the Company and its stakeholders."

The Company anticipates beginning three separate Phase I clinical trials within the next three months. Developed by Genesys Pharma, GPI-2A is a gene based antisense therapy that prevents the replication of the AIDS virus in human cells. The Company is now completing the final preparations to begin a Phase I clinical trial to be directed by Dr. Fred Y. Aoki in Winnipeg, Manitoba. This represents the first gene based therapy developed by a Canadian company to commence clinical trials in Canada.

Concurrently, the Company will be initiating a separate Phase I clinical trial employing its recombinant human antibody, NOVOMAb-G2 scFv, and - pending approval from the Food and Drug Administration - will initiate a Phase I clinical trial involving 4B5, a human anti-idiotype antibody intended for use as a vaccine in the treatment of melanoma and small cell carcinoma of the lung.

Novopharm Biotech Inc. is a publicly traded subsidiary of Novopharm Limited, one of Canada's largest generic pharmaceutical companies. Novopharm Biotech develops both innovative and generic biopharmaceutical products and has facilities in Scarborough, ON; Winnipeg, MB; San Diego, CA; and Birmingham, AL.

CONTACT: Novopharm Biotech Inc.

Stacey Jurchison, 416/291-8888 ext. 5165