WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

June 08, 2007 17:53 ET

WEX Pharmaceuticals Inc.: Update on Situation in Nanning Maple Leaf Pharmaceutical Co., Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2007) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) announced today that following further meetings in Nanning, China involving senior officials of the Company, the issues giving rise to the concerns over a temporary lack of control over the assets and operations of the Company's 97 per cent owned subsidiary Nanning Maple Leaf Pharmaceutical Co., Ltd. (NMLP) have been satisfactorily resolved and WEX has control of NMLP's operations. WEX is satisfied that actions taken by its 3 per cent joint venture partner in NMLP were taken in the best interests of NMLP.

The Board of NMLP met this morning and three nominees of WEX joined the Board to replace three directors who had retired or left the Company. The board consists of five nominees of WEX and one representative of WEX's 3 per cent joint venture partner together with a nominee of an Asian bank so long as outstanding funds are owed to it under its debenture. The board unanimously endorsed a revised system of controls and internal approval authorizations.

Mr. Michael Luan, Chairman of the parent company board, who was present at the meeting said: "I was very pleased to see all parties put the incidents of the past week behind them. The meeting was conducted in a harmonious manner and much progress was made."

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

This News Release contains forward-looking statements which may not be based on historical fact. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. 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.

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