SOURCE: Oncologix Tech Inc.

March 19, 2008 15:35 ET

Oncologix in Discussions for Disposition of Oncosphere Assets

GRAND RAPIDS, MI--(Marketwire - March 19, 2008) - Oncologix Tech Inc. (OTCBB: OCLG) announced today that it has entered into discussions with Institut für Umwelttechnologien GmbH, a German company ("IUT"), in an expectation of entering into an arrangement in which Oncologix would sell all of its Oncosphere-related assets to IUT in exchange for an amount in cash, the assumption by IUT of Oncologix liabilities related to Oncosphere development and the issuance to Oncologix of a 20% interest in a new company to be established for the manufacture of the Oncosphere and possibly other products as well. There may be additional arrangements. The total of cash and liabilities to be assumed is presently estimated at between $250,000 and $300,000. No estimate has yet been made of the value of the interest in the new company that will be issued to Oncologix.

According to Ms. Judy Lindstrom, Chief Executive Officer of Oncologix, "IUT, whose name is translated as Institute of Environmental Technologies, develops and tests processes and products related to the measurement of radioactivity and radioactive isotopes, isotope technology, spectroscopy, sensor development, plasma and laser technology, radiation measurement and analytical chemistry."

She went on to say, "We are fortunate indeed to have this opportunity to combine our Oncosphere technology with IUT's scientific capabilities. IUT has worked with us, on a consulting basis, in our past Oncosphere development activities and its scientific people are already quite familiar with that product and its state of development. We anticipate that this arrangement will benefit not only our shareholders but all those for whom the Oncosphere will represent a better treatment for soft tumor cancers."

She cautioned, however, "We do not yet have a definitive, binding agreement with IUT. When, as we hope, we arrive at final terms with IUT, the approval of our shareholders will be required. We should also bear in mind that success in the future marketing of the Oncosphere will depend on our ability to finance a marketing operation."

About Oncologix Tech Inc. and its subsidiary, Oncologix Corporation:

Oncologix Tech Inc. (formerly BestNet Communications Corp.) was formerly a provider of long distance telephone communication services but disposed of that business in January 2007.

The Company was developing a brachytherapy (radiation therapy) device, the Oncosphere System, for the advanced medical treatment of soft tissue cancers until it suspended operations at the end of December 2007 because of financial difficulties. It is based on radioactive microparticles designed to deliver therapeutic radiation directly to a tumor site by introducing the microparticles into the artery that feeds the tumor tissue.

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the company. Although the company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, can be no assurance that the forward-looking statements included in this release will prove to be accurate.

About IUT

IUT was founded in Germany in 1992 by a group of scientists. It is located in the Berlin area and is concentrated on manufacturing special analytic devices and advanced technology developments, with a focus on environmental technology, and manufacturing of radioisotopes and radio labeled compounds. IUT maintains a website at http://www.iut-berlin.info/8.0.html?&L=1.

Contact Information

  • Contact:
    Michael Kramarz
    Chief Financial Officer
    Tel: (616) 977-9933