CHEMAPHOR INC. TO BE OFFERED $2.1 MILLION CONTRIBUTION BY ATLANTIC CANADA OPPORTUNITIES AGENCY

Chemaphor Inc. announced today that it has been informed by the Atlantic Canada Opportunities Agency ("ACOA") that ACOA intends to offer a contribution of up to $2.1 million by way of a loan to fund a research and development project proposal submitted by Chemaphor to ACOA in October, 2005. Minister of Foreign Affairs and Minister of the Atlantic Canada Opportunities Agency, Peter MacKay, publicly announced ACOA's intention to offer funding to Chemaphor this morning at a press conference held in Charlottetown, Prince Edward Island.
CCN Matthews