SOURCE: Oncologix Tech, Inc.

April 18, 2008 14:03 ET

Oncologix Tech, Inc. Announces Signing of a Memorandum of Understanding to Sell Its Oncosphere Product

GRAND RAPIDS, MI--(Marketwire - April 18, 2008) - Oncologix Tech, Inc. (OTCBB: OCLG) announced today that a non-binding Memorandum of Understanding had been signed by Oncologix and Institut für Unwelttechnologien GmbH (IUT), a German company, for the continued development and commercialization of the Oncologix Oncosphere product. The Memorandum contemplates the formulation of a mutually agreed definitive agreement by the parties and its approval by the shareholders of Oncologix.

Further discussions and agreements will be based on the following preliminary agreements. Oncologix will sell to IUT (through a new company to be established by IUT for the development and commercialization of medical products based on radiation) all assets related to the Oncosphere. An assignment of Oncologix's technology license from the University of Maryland will be included in those assets. IUT will assume and pay all of the Oncosphere-related liabilities of Oncologix. Oncologix will own 20% of the new company and will be entitled to a 3% royalty on all net sales of that company. IUT will provide the initial financing for the new company as well as the necessary testing and manufacturing facilities, licenses for engaging in radiation activities and overall management and administrative functions. It is contemplated that IUT will afford the new company favorable prices and terms for its purchases of services and materials from IUT. Oncologix is also expected to receive a cash payment of approximately $50,000.

In connection with this announcement, Ms. Judy Lindstrom, Oncologix's Chief Executive Officer, expressed her "great pleasure at arriving at an arrangement with new partners that we expect to enhance the value of our shareholders' investments in Oncologix." She added that, "We are very pleased to be able to participate with IUT and its highly qualified scientists in completing the Oncosphere development and are confident that our future together will prove beneficial for all concerned."

Ms. Lindstrom cautioned, however, that, "We still have a lot of work to do in arriving at a definitive detailed agreement and obtaining the approval of our shareholders."

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 is developing a brachytherapy (radiation therapy) device, the Oncosphere System, for the advanced medical treatment of soft tissue cancers. It is based on a 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, founded in 1992 under the direction of Professor Dr. Jürgen Leonhardt and a group of scientists, has established its expertise in radiation labeling of compounds for biotechnologies, analytical analysis of radioactive compounds, organic and inorganic chemistry, radiation and chemical recycling, and homeland security technologies (transportation, building, and military applications worldwide). IUT contracts with government and industry partners worldwide to develop new technologies based on chemical and radioactive components UT 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