Xechem International Signs a Joint Venture Agreement With J&M Consultants, LTD. to Establish Xechem Pharmaceutical China Ltd With Offices in Hong Kong and Beijing, P.R. China.

Business Editors

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--April 4, 2000

Xechem International, Inc. (OTC BB: ZKEM) announced today that the Company has signed a joint venture agreement with J & M Consultants to establish Xechem Pharmaceutical China Ltd. with offices in Hong Kong and Beijing, Peoples Republic of China.

The purpose of establishing Xechem China is to carry on the business of, inter alia, manufacturing, marketing and distributing pharmaceutical and nutraceutical products. Xechem China will also carry out research, development, clinical studies and production of new drugs based on Xechem technology on traditional Chinese medicine and other disciplines, provide consulting services for drug development and set up a certified laboratory in P.R. China to screen, verify and certify pharmaceutical products for the public.

In an exclusive License Agreement with Xechem China, Xechem International will allow the use of its patents, trademarks and technical information to use the process to manufacture, market and sell the products in the Territory of People's Republic of China, Hong Kong, Macao, Taiwan (The Republic of China), Mongolia, Korea, Singapore, Malaysia, Indonesia, Republic of Philippines, Thailand, Vietnam, Brunei, Cambodia, Myanmar, and such other countries or regions which may be agreed between the parties. A non-exclusive license is granted in Japan. J & M has committed a sum of HK$ 9,500,000.00 and management support to the joint venture and up to $240,000 as an interest free loan to Xechem over 24 months. Profits of the joint venture are to be split 55% to J & M and 45% to Xechem.

In the first phase, Xechem China will start the (i) manufacture pre-clinical and clinical studies of a new paclitaxel formulation for ovarian and breast cancers, (ii) toxicological studies on two of Xechem's second generation patented paclitaxel analogs and (iii) registration of Xechem/XetaPharm's nutritional products (GinkgoOnce(R), GarlicOnce(R), GinsengOnce(R), Gugulon(TM), Co-Enzyme Q-10 and Vida Pras(TM)).

According to Dr. Ramesh C. Pandey, President and CEO of Xechem International said "We are very excited with this development of a joint venture in the People's Republic of China, which is one of the largest markets besides the USA. This far reaching joint venture will work with both private and government institutions to perform research, conduct pre-clinical and clinical trials, manufacture and distribute the products. We are entering in this market at the right time with a drug which had sales of over $1.5 billion US dollars in 1999. This is going to help us in achieving our goals".

Xechem is a biopharmaceutical company engaged in the research, development and production of generic and proprietary drugs from natural sources, specializing in the development of difficult to replicate anticancer, antiviral (including AIDS) and antifungal compounds. The Company also screens extracts and pure compounds from China, India and Indonesia for their therapeutic use. XetaPharm develops quality controlled nutritional products such as GinkgoOnce(R), GinsengOnce(R), GarlicOnce(R) and Gugulon(TM) and numerous products which are under development.

This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks, uncertainties, including the ability of the Companies to successfully develop and commercialize their technologies, and other factors that may cause the actual results, performance or achievements of the Companies to be materially different from any future results, performance or achievements of the Companies expressed or implied by such forward-looking statements.