OxyFile #414

LifeTech Announces Strategic Alliance with Pall Corporation


TORONTO, Feb. 4, 1997 - LifeTECH Corporation announced today that 
it has signed a Letter of Intent with Pall Corporation to 
establish a strategic alliance based on LifeTECH's Sterinetics(TM) 
System for sterilizing blood and blood products. Pursuant to the 
Letter of Intent, LifeTECH would grant exclusive rights to Pall to 
manufacture and market blood collection systems incorporating 
LifeTECH's proprietary blood sterilization technology. Payments to 
LifeTECH for license rights, and equity investments are 
anticipated to be US$15 million over approximately three years, 
plus on-going royalties on sales.

Walter J. Dermott, President and Chief Executive Officer of 
LifeTECH, stated, "This strategic alliance with Pall Corporation 
is an important step forward for our technology and our goal of 
making the global blood supply safe. Pall is a leader in 
leukodepletion technology and has a significant market presence in 
blood collection sets. With this strategic alliance, Pall will be 
able to offer sterilization of blood and blood products as an 
integral part of their product line. This added value will make 
Pall's blood collection sets unique in the global marketplace, and 
will make LifeTECH's technology the industry leader in the fight 
against viruses and bacteria in the blood supply. LifeTECH is 
honoured to be working with Pall, an innovative and progressive 
market leader."

Eric Krasnoff, Chairman and CEO of Pall Corporation, stated, "We 
are excited to work with LifeTECH to dramatically improve the 
safety and purity of the world's blood supply. Pathogen 
inactivation addresses the very serious problem of virus and 
bacterial contamination of blood products, including the HIV 
virus. Once approved, we expect this technology to be rapidly 
adopted."

The Letter of Intent signed by LifeTECH and Pall Corporation sets 
out the terms under which a definitive agreement should be 
executed by the two companies by April 15, 1997. Pall will acquire 
a five year, exclusive, renewable license throughout the world 
(excluding Japan) to manufacture, market, use and sell blood 
collection sets for red blood cells, platelets and plasma 
incorporating LifeTECH's sterilization technology. LifeTECH will 
receive an initial payment of US$2 million, then further payments 
anticipated to be US$13 million based on the achievement of 
milestones, plus royalties on all products sold by Pall that 
incorporate LifeTECH technology. A portion of the US$15 million 
payments will be equity investments in LifeTECH. A Pall 
representative will be proposed for election to LifeTECH's Board 
of Directors, and Pall will be granted a seat on LifeTECH's 
Scientific Advisory Board. The conclusion of a definitive 
agreement will be subject to, among other things, satisfactory 
conclusion of due diligence reviews by Pall of LifeTECH's 
business, scientific and patent positions, as well as Board of 
Directors and governmental approvals, if any.

Pall Corporation, with annual sales over $1 billion, is 
headquartered in East Hills, New York. The Company has the 
broadest based filtration and separations capabilities in the 
world. Since 1946, Pall Corporation has demonstrated technological 
leadership and innovative solutions to complex fluid clarification 
and purification problems in each of its three major markets, 
Health Care, Aeropower and Fluid Processing. The Company employs 
nearly 9,000 people in facilities throughout the world. The 
Company's shares are listed on the New York Stock Exchange (PLL) 
and the London Stock Exchange (0668260).

LifeTECH Corporation is a Canadian biotechnology company dedicated 
to developing and commercializing innovative technologies to 
sterilize blood and other biological fluids. LifeTECH's 
Sterinetics System is designed to inactivate viruses and bacteria 
in the global blood supply, including the HIV and Hepatitis 
viruses. LifeTECH common shares (LFTK) and warrants (LFTK.WT) 
trade on the Canadian Dealing Network.


For further information: Craig Gauld, Vice President, LifeTECH 
Corporation, (416) 620-LIFE