EDMONTON, Jan 05, 2005 -- Altachem Pharma Ltd. is pleased to announce that the company has received approval from the Chinese Minister of Health for the sale and marketing of its Bionex Hard Surface Disinfectant product in China. The Bionex hard surface disinfectant is developed based on a patented proprietary formula from Altachem Pharma Ltd. and is the first of a family of disinfectant products designed for infection control. The product has been tested and certified by the Chinese Center for Disease Control and Prevention laboratories as a non-toxic, non-irritating and highly effective hard surface disinfectant. This environmentally friendly product has been approved to be used in numerous situations for disinfecting general hard surfaces and textiles in hospitals, households and restaurants.

Altachem Pharma plans to manufacture the Bionex hard surface disinfectant at Shanghai Hua Gao Pharmaceutical Pellet Core Ltd. which is a wholly owned subsidiary of Altachem Pharma Ltd.

Altachem Pharma Ltd. is in the process of assembling a marketing team with disinfectant sales experiences in China to oversee the launch of this product in the Chinese market. Altachem will be submitting for testing other members of the Bionex disinfectant family including Bionex Hand Gel for hand sanitization and as a surgical hand scrub, and Bionex High Level Disinfectant for disinfection of medical devices.

Altachem is a publicly traded (TSX Venture Exchange: AAF), Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products. It is developing a multi-tiered, integrated approach for the treatment of HIV/AIDS and cancer using novel therapeutic products and adjunct therapies. The lead products of Altachem are Bionex and its four proprietary drugs: ACP-HIP, HB Injectible (ACPSL-017), HB Topical and ACP 2127. ACP-HIP is currently in Phase I clinical trials. Altachem`s manufacturing facilities located in Edmonton, Alberta head office and Shanghai, China are certified compliant with internationally recognized quality systems standards.

Certain information contained in this press release may be forward- looking and is subject to unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This is neither an offer to buy or sell a security. For informational purposes only, from sources deemed to be reliable.

``TSX Venture Exchange has neither approved nor disapproved of the

information contained herein.``

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For further information: contact:

Roger Andrews, Corporate Communications,

Tel.: (780) 448-1400 (Ext. 206),

Web site: www.altachempharma.com,

E-mail: info@altachempharma.com;

Dr. Selvaraj Naicker, Interim Chief Operating Officer,

Tel.: (780) 448-1400 (Ext. 223)