Altachem Pharma Announces Closure of Private Placement

Altachem Pharma announced that it has closed the second and last tranche of the non-brokered private placement financing announced Dec. 10, 2004, with the sale of an additional 4,200,000 units (the "Units") for gross proceeds of $1,050,000. Closing of the second tranche is subject to regulatory approval. The proceeds will be used to further operations and fund core programs. Total gross proceeds from both tranches are $1,493,000.

Canada NewsWire Group (http://www.newswire.ca/en/releases/archive/May2005/10/c6791.html)