EquiTech Corporation announces year-end results

TSX Venture Exchange Symbol: EQT

EDMONTON, AB, May 9 /CNW/ - EquiTech Corporation (TSX-V:EQT) ("EquiTech"), a specialty pharmaceutical company focused on improving the effectiveness of existing medications, today announced financial results for the year ended December 31, 2002. For the year ended December 31, 2002 EquiTech reported a net loss of $425,000 or ($0.08) per share, compared to a net loss of $58,000 or ($0.01) per share for the same period in 2001.

"This past year's efforts and achievements have been very successful in allowing us to implement our business plan and begin to establish EquiTech as a specialty pharmaceutical company," said James Chivers-Wilson, EquiTech's President and CEO. "This year, we will continue to advance our fast-absorbing ibuprofen compound through manufacturing, clinical trials and entering into a strategic partnership. We will continue to develop and expand our product pipeline and we will pursue all opportunities that can accelerate our growth strategy."

Operating expenses for the year were $431,000 including research and development expense of almost $240,000. Cash and equivalents, and short-term investments at December 31, 2002 were $215,000 compared to $482,000 at December 31, 2001.

Highlights of the year

• Raised approximately $750,000 through exercise of options, grant support, and equity financing, including a private placement that closed January, 2003
• Acquisition of Zagros Pharma Inc. - focused development on lead compound ZAG-1701 using the enhanced absorption technology platform
• Appointed Dr. Abraham Sunshine, a world renowned expert in pain management to Chairman of Scientific Advisory Board
• Protected the company's intellectual property with application of two US and three world-wide patents

Additional financing will be required to complete the development and commercialization of the company's lead compound ZAG-1701, and several financing activities are currently underway.

EquiTech's lead compound, ZAG-1701, a fast-absorbing ibuprofen, has been developed using the Company's patent-pending absorption enhancing technology.

As demonstrated in EquiTech's laboratory, ZAG-1701 has the potential to be more rapidly absorbed into the bloodstream which may result in more rapid onset of pain relief when compared to existing over-the-counter pain relief medications. The worldwide pain medication market is valued at more than US$23 billion, with an annual growth rate of approximately 3.5%.

EquiTech's Annual General Meeting will be held on Wednesday, May 21, 2003 at 3:00pm MST at the Telus Centre for Professional Development, Edmonton, Alberta.

About EquiTech Corporation

EquiTech Corporation is a specialty pharmaceutical company with patent pending technology to create and develop better absorbing pharmaceutical products that are taken orally. EquiTech's lead compound is a fast absorbing ibuprofen for the treatment of moderate acute pain. EquiTech trades on the TSX Venture Exchange under the symbol EQT and currently has approximately 6.5 million common shares outstanding. For further information, visit www.equitechcorporation.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities of the corporation have not been and will not be registered under the U.S. Securities Act, 1933, as amended and subject to certain exemptions may not be offered or sold in the United States or to U.S. persons. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release may contain forward-looking statements, i.e. information that is not strictly historical, concerning EquiTech's business and prospects.

Forward-looking statements are subject to a number of risks and uncertainties. Actual events and results may differ materially from those discussed in this press release, due to factors including research, development, commercial and market risks.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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For further information: please contact: Jay Hussey, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext.223, jhussey@equicomgroup.com; James A. Chivers-Wilson, President & CEO, EquiTech Corporation, (780) 430-1633

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