OxyFile #436

LifeTECH Strategic Alliance with Pall Corporation Not Completed
Research & Development Cooperation to Continue with Pall
Alternative Alliance Targeted Over the Coming Months

TORONTO, May 7 1997 - LifeTECH Corporation today announced that it 
will not complete its Strategic Alliance with Pall Corporation, 
East Hills, New York. As previously announced on February 4, 1997, 
LifeTECH and Pall signed a Letter of Intent specifying a period 
ending on April 15, 1997 to complete due diligence and execute a 
definitive agreement granting Pall the exclusive rights to 
manufacture and market blood collection sets incorporating 
LifeTECH's proprietary Sterinetics System for the inactivation of 
viruses and bacteria. While both companies have agreed not to 
pursue a Strategic Alliance at this time, discussions since April 
15, 1997 have focused on future relationships.

Walter J. Dermott, President & CEO made the announcement, saying 
"We are obviously disappointed that a Strategic Alliance has not 
been completed with Pall. Pall concluded that the stage of our 
product development did not fit within their strategic timeframe. 
Pall and LifeTECH have agreed to continue to work together on the 
development of the LifeTECH technology, with Pall providing their 
blood collection sets, additive solutions, filters and 
manufacturing expertise on an on-going basis. Pall and LifeTECH 
will continue to evaluate opportunities for their combined 
technologies to improve the safety of the global blood supply."

Mr. Dermott continued "We remain confident in the commercial 
potential of the Sterinetics System. LifeTECH will now 
aggressively accelerate on-going discussions with other major 
participants in the human red blood cell collection marketplace, 
both in the United States and abroad. The European community is of 
special interest, since their blood market represents 33% of the 
global market, their regulatory approval process is faster, and 
European research into oxidative stress is more advanced. LifeTECH 
will also pursue other major market segments - fractionated 
products, apheresis blood collection and animal sera/tissue 
culture. The universal applicability of our technology to all 
blood products - both human and animal - creates multiple 
opportunities to commercialize our technology. Our goal is to 
complete an alliance and/or collaboration over the coming months."