GRAND RAPIDS, MI -- (Marketwire) -- 08/18/08 -- Oncologix Tech Inc. (OTCBB: OCLG)announced today the signing of an Asset Purchase Agreement with Institutfür Umwelttechnologien GmbH, a German company ("IUT") of Berlin, Germany,under which Oncologix is to sell all of the assets pertaining to itsOncosphere product to a newly organized subsidiary of IUT called "IUTMedical, GmbH" ("IUTM"). The agreement is subject to the approval of theOncologix shareholders and to the agreement of the University of Marylandto certain changes in the Master License Agreement whereunder theUniversity licenses the technology underlying the Oncosphere product.In making the announcement, Ms. Judy Lindstrom, the Oncologix ChiefExecutive Officer, said, "We are of course delighted at having entered intothis agreement with our friends at IUT and look forward to a profitablecontinuing relationship. We are optimistic of obtaining the necessaryapprovals of our shareholders and the University of Maryland."
The terms of the Agreement provide generally for the transfer to IUTM ofall the Oncosphere-related assets of Oncologix and the assumption by IUT ofall of the liabilities of Oncologix that are related to its Oncospheredevelopment effort. In exchange, Oncologix is to receive a cash payment atthe Closing of $50,000, a 20% equity interest in IUTM and royalty paymentsbased on the future revenue of IUTM.
Full details of the Agreement will be contained in a Proxy Statement to beprepared by Oncologix in connection with its request for shareholderapproval.
Also, according to Ms. Lindstrom, "While still on an informal basis, wehave agreed with IUT to enter into discussions with a view to having IUTMgrant marketing rights to Oncologix for the Oncosphere and possibly otherIUTM products in consideration of reducing or even possibly eliminating ourrights to royalties. While there is nothing definite at this point, webelieve that having marketing rights would be a very substantial benefit toOncologix and its shareholders."
About Oncologix Tech Inc. and its subsidiary, Oncologix Corporation.:
Oncologix Tech Inc. (formerly BestNet Communications Corp.) was formerly aprovider of long distance telephone communication services but disposed ofthat business in January 2007.
The Company was developing a brachytherapy (radiation therapy) device, theOncosphere System, for the advanced medical treatment of soft tissuecancers until it suspended operations at the end of December 2007 becauseof financial difficulties. It is based on radioactive microparticlesdesigned to deliver therapeutic radiation directly to a tumor site byintroducing the microparticles into the artery that feeds the tumor tissue.
This release contains forward-looking statements within the meaning ofSection 21E of the Securities Exchange Act of 1934, as amended, which areintended to be covered by the "safe harbor" created thereby. Thesestatements include the plans and objectives of management for futureoperations, including plans and objectives. The forward-looking statementsherein are based on current expectations that involve judgments withrespect to, among other things, future economic, competitive and marketconditions and future business decisions, all of which are difficult orimpossible to predict accurately and many of which are beyond control ofthe company. Although the company believes that the assumptions underlyingthe forward-looking statements are reasonable, any one of the assumptionscould be inaccurate and, therefore, can be no assurance that theforward-looking statements included in this release will prove to beaccurate.
About IUT
IUT was founded in Germany in 1992 by a group of scientists. It is locatedin the Berlin area and is concentrated on manufacturing special analyticdevices and advanced technology developments, with a focus on environmentaltechnology, and manufacturing of radioisotopes and radio labeled compounds.IUT maintains a website at http://www.iut-berlin.info/8.0.html?&L=1.
Contacts:
Michael Kramarz
Chief Financial Officer
Tel: (616) 977-9933
