WEX Pharmaceuticals Inc.
TSX : WXI

WEX Pharmaceuticals Inc.

October 16, 2007 19:35 ET

WEX Pharmaceuticals Inc.: Comprehensive Litigation Settlement-Press Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2007) - WEX Pharmaceuticals Inc. (the "Company")(TSX VENTURE:WXI) announced today that it had concluded settlement agreements putting an end to claims for damages for unlawful termination brought against the Company on behalf of its Founder and former Chief Executive Officer Mr. Frank Shum and its former Chief Operating Officer Ms. Donna Shum and disputed contract claims by and against a significant shareholder, Tianjin Fairwood Furniture Manufacturing Co. Ltd. ("Tianjin").

Following the settlement, it is also appropriate to pay a tribute to the founding chairman Mr. Frank Shum who led the Company for its first 17 years. Mr. Shum's contributions to WEX, which began shortly after the discovery of TTX, have over the years included a great deal of Mr. Shum's capital, time and energy, all of which have helped advance TTX from the discovery stage through to the creation of a patent portfolio and later, the Phase II clinical trial stage. In recognition of Mr. Shum's contributions and his life's work, WEX is pleased to announce that Mr. Shum has accepted the position of Honorary Chief Advisor which will be a fitting way to memorialize his contribution.

WEX also gives recognition and special thanks to Ms. Donna Shum during her tenure as COO. During 10 years of service, she has demonstrated leadership, ability, dedication and played an integral part in the development of TTX.

The Chairman also took the opportunity to comment on an incident that had occurred on May 29, 2007 at the premises of WEX's subsidiary Nanning Maple Leaf Pharmaceuticals Ltd. ("NMLP"). WEX suggested that control of the operations had been illegally taken by representatives of Tianjin with the support of Mr. Yang Song Yang the representative of NMLP's 3% owner. Mr. Luan, the Chairman of WEX said: "We are now aware of the full background to the incident and I am pleased to set the record straight and to confirm that nothing illegal occurred and that the visit by Tianjin to NMLP and the action taken by its 3% shareholder were made in good faith. Both sides have decided to put this incident behind us and we look forward to having Tianjin as a strong and supportive shareholder."

Under the settlements, which remain subject to the closing of the previously announced CK Life Sciences Int'l., Inc. investment in WEX (the "CKLS Investment") anticipated to occur on October 17, 2007, all parties agreed to terminate all proceedings and to each pay their own legal costs; the detailed terms of the settlements have been agreed to remain confidential. Although, the cost to the Company of resolving these claims was just under a million dollars, the Company believes this is clearly in the Company's interests in that the settlements free up substantial funds which would have been required to pursue the litigation.

About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain. The Company's principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market. The Company's Chinese subsidiary sells generic products manufactured at its facility in China.

Forward Looking Statements and Information

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements and information include but are not limited to statements or information about the CKLS Investment. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made certain assumptions. Forward-looking statements and information are by their nature based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These risks and uncertainties include the satisfaction of the conditions precedent of the CKLS Investment. See our annual information form, our management information circular and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statements and information. There can be no assurance that forward-looking statements or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments. All forward-looking statements and information made herein are qualified by this cautionary statement.

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