Pacific Therapeutics Ltd.

Pacific Therapeutics Ltd. (PTL) is a development stage Specialty Pharmaceutical Company focused on the sales and development of treatments and services for lung transplant and fibrosis patients. PTL’s lead product PTL-101, is a new drug for the treatment of Chronic Lung Transplant Rejection (Bronchiolitis Obliterans) and Idiopathic Pulmonary Fibrosis (IPF). These diseases represent a niche market with potential sales in excess of $2 billion. This is also a rapidly growing market where the number of lung transplants grew by 20% in 2005. PTL-101is a desperately needed drug and works by blocking a key molecule that causes the progression of the disease. The company was incorporated in September of 2005 under the British Columbia Company Act and recently optioned the assignment of the issued patent and intellectual property surrounding the drug from the University of British Columbia (UBC). The drug has been tested in rats and has been shown to be effective in blocking the development of disease and did not demonstrate any noticeable toxic effects. The drug was also shown to be effective in human tissue.

Bronchiolitis Obliterans and IPF are both incurable and totally lethal. Within 5 years of having a lung transplant 50% of patients will develop Bronchiolitis Obliterans, eventually all patients who survive past 5 years will die from it – 100% mortality. The life expectancy of an individual diagnosed with IPF is only 2.8 years. There is no treatment approved for these diseases and none that is effective! The opportunity is to develop this superior drug to stop the progression of these horrible fibrotic diseases and extend the life of these patients. Pacific Therapeutics Ltd. management is very excited to have the opportunity to take into clinical trials a drug that is so far advanced. This is an exceptional and rare opportunity to be able to capture such a late stage drug from a university and develop it for a totally lethal, totally unmet need.

PTL will initially develop and register PTL-101 for Chronic Lung Transplant Rejection, providing sales in excess of $40 million / year. Sales efforts will be focused on the 30 centres in the US that perform 10 or more lung transplants per year. The company will then complete phase 2 trials in IPF. Off label sales based on this trial will result in additional revenue of $140 million / year.

The company will require $1.5 million over the next year to move PTL-101 in to human clinical trials. In Year 2, $3 million will be required for a Phase I clinical study. After extensive due diligence the National Research Council has committed over $45,000 to support the company’s pre-clinical research program.