LifeTech Announces $3 Million Rights Offering to Shareholders and Warrantholders TORONTO, Oct. 7, 1997 - LifeTECH Corporation today announced a Rights Offering to all holders of its Common Shares and Warrants. Each shareholder or warrantholder is entitled to one Right for each Common Share or Warrant held by them on the record date of October 9, 1997. Each Right entitles its holder to purchase one Common Share at a price of $0.50 prior to the expiry of the Rights Offering on October 30, 1997. The number of Rights issued totals 6,162,368, made up of 4,622,368 Rights issued to shareholders and 1,540,000 Rights issued to warrantholders. If fully subscribed, the Rights Offering could raise approximately $3 million. The Corporation is also concurrently seeking alternative sources of financing and reserves the right to cancel this Rights Offering if a more favourable financing is arranged. Mr. Walter J. Dermott, President and CEO made the announcement, saying "The funds raised by this financing, if fully subscribed, will see the Corporation through to the next stage of development of our unique technology to sterilize blood products. This next phase will include data generation for third party Pre-Clinical Trials and the commencement of Pre-Clinical Trials for the U.S. FDA and European regulatory approvals." Mr. Dermott continued "Our principal focus is to secure key strategic alliances and collaborative research agreements with major players in blood products in the United States and Europe. These alliances will provide LifeTECH access to specific scientific and manufacturing expertise of our partners. We are currently in discussions with eleven major manufacturers worldwide to establish scientific and commercial collaborations that will advance our technology into the key market areas of human blood transfusions, fractionated blood products, animal sera and tissue culture media. A series of scientific collaborations with major players in the blood markets in Europe and the United States is expected during the fall of 1997. It is our hope that this Rights Offering will allow our shareholders and warrantholders to share in the future growth and success of the Corporation."