EquiTech Corporation announces retention of a sponsor

SEPTEMBER 28, 2001

Edmonton, Alberta – EquiTech Corporation (" EquiTech"), a capital pool company, is pleased to announce that, further to its press release dated March 14, 2001 announcing its proposed Qualifying Transaction whereby the shareholders of Zagros Pharma Limited (" Zagros") have agreed to exchange 100% of their Zagros shares for common shares in EquiTech, it has retained Yorkton Securities Inc. to act as sponsor in connection with the Qualifying Transaction, subject to completion of satisfactory due diligence.

In the near future, EquiTech will circulate an information circular providing detailed disclosure with respect to the proposed Qualifying Transaction to all its shareholders. The completion of the Qualifying Transaction is subject to, among other things, obtaining all necessary regulatory approvals, including the approval of the Canadian Venture Exchange and the approval of the Shareholders of EquiTech. The resolution to approve a Qualifying Transaction will be voted on by the Shareholders of EquiTech on the basis of the "majority of the minority" test, which requires that the resolution approving the Qualifying Transaction be passed by at least 50% plus one vote of the votes cast by the "minority shareholders" of EquiTech. The "minority shareholders" are all Shareholders of EquiTech other than those persons who are promoters, directors, officers or other insiders of EquiTech or Zagros, and associates and affiliates of all such persons.

Zagros, an Edmonton-based Biotechnology company, continues to develop its initial product, which is focused on fast acting analgesic drugs, and has other products in various stages and development.

On completion of the Qualifying Transaction, James Chivers-Wilson will be appointed as President of EquiTech/ Zagros. Mr. Chivers-Wilson holds a Master's Degree in Science from the University of Western Ontario and has had much relevant experience in the Biotechnology industry. He has been a businessman for over 20 years and has been involved with several private biotech companies.

Yorkton Securities Inc., subject to completion of satisfactory due diligence, has agreed to act as sponsor in connection with the Qualifying Transaction. An agreement to sponsor should not be

construed as any assurance with respect to the merits of the transaction or the likelihood of completion.

The Canadian Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

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