ISOTECHNIKA PHARMA ANNOUNCES PARTIAL CONVERSION OF CONVERTIBLE DEBENTURE

EDMONTON, Sept. 7 /CNW/ - Isotechnika Pharma Inc. announces it has received a notice to convert from 3SBio Inc. with respect to the convertible debenture previously issued to 3SBio Inc. on August 23, 2010. Under the notice to convert, 3SBio Inc. is converting $2.02 million CDN ($1.92 million USD) of the $4.5 million USD convertible debenture into Common Shares pursuant to the conversion terms provided by the debenture certificate. As a result, the Company will issue 13 million Common Shares at $0.155 per Common Share to 3SBio Inc. The Common Shares are subject to a four month hold commencing August 23, 2010.

About Isotechnika Pharma Inc.

Isotechnika Pharma Inc. is a biopharmaceutical company focused on the discovery and development of immunomodulating therapeutics that are designed to offer advantages over other currently available treatments. There is a significant unmet medical need in the treatment of both solid organ transplantation and autoimmune disease. It is estimated that the market potential will be $2.95 billion annually in sales for calcineurin inhibitors such as voclosporin in 2010.

Isotechnika Pharma Inc. and 3SBio Inc. announced on August 24, 2010 the signing of a development and commercialization agreement for voclosporin, a next generation calcineurin inhibitor being developed for use in the prevention of organ rejection following transplantation and the treatment of autoimmune diseases. The transaction provided Isotechnika with proceeds of US$6 million. Isotechnika received an upfront non-refundable licensing payment of US$1.5 million with an additional US$4.5 million invested by 3SBio through a convertible debenture. Under the terms of the agreement, Isotechnika granted 3SBio exclusive rights to all transplant and autoimmune indications of voclosporin in China, including Hong Kong and Taiwan. 3SBio will be responsible for the clinical development, registration and commercialization of voclosporin in China. Isotechnika will provide, under separate agreement, commercial supply to 3SBio on a cost-plus basis. Isotechnika will also receive ongoing royalties based on sales of voclosporin by 3SBio. The Company continues to seek strategic partnerships in other regions.

Isotechnika Pharma Inc. is a publicly traded company on the Toronto Stock Exchange under the symbol "ISA". More information on Isotechnika Pharma can be found at www.isotechnika.com or www.SEDAR.com.

We seek Safe Harbor.

%SEDAR: 00028600E

For further information: Dr. Robert Foster, President & CEO, 780-487-1600 (247), [email protected]; Mr. Dennis Bourgeault, Chief Financial Officer, 780-487-1600 (226), [email protected]