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Company Press Release

Forbes Provides AD Commercialization Update

VANCOUVER, B.C.--(BUSINESS WIRE)--Dec. 20, 1999--Forbes Medi-Tech Inc. (TSE: FMI. - news) today announced that its fermentation process to produce Androstenedione (AD) has been upscaled to the 5,000 litre level and is expected to move to commercial production levels in the next few months.

AD and Androstadienedione (ADD) are fine chemical intermediates used to produce pharmaceutical steroids such as sex hormones, birth control agents and cortico-steroids. The estimated US$750 million annual marketplace for AD & ADD is largely unsatisfied and controlled by a number of integrated pharmaceutical companies which manufacture AD & ADD primarily for their own use.

In late 1998, Forbes signed a Letter of Intent (LOI) with Cargill, Inc. to explore a joint venture for AD & ADD production and distribution. Under this LOI, the companies have been working together to evaluate the technology towards manufacturing and commercialization of AD & ADD. Although the LOI has expired, Forbes continues to investigate a potential business arrangement with Cargill, Inc. However, given the market opportunities and the recent technology advancements the Company has made, Forbes is considering custom manufacturing and independent distribution which may result in greater economic benefits.

Since May 1999, Biovet JCS of Bulgaria has been working with Forbes' AD technology to implement process changes necessary for large-scale production. Discussions have been initiated on an AD Manufacturing Agreement which is expected to utilize a portion of Biovet's 2.2 million plus litre fermentation capacity to deliver tonne quantity production.

``With the commercial quality of AD we have produced at Biovet, we can now move to larger-scale production,'' said Dr. Jim Kutney, Vice President of Scientific Research & Development at Forbes. ``Our Development Work Program with Biovet calls for transfer to 50,000 litre bio-reactors within the next few months.''

Forbes has sourced sufficient vegetable-derived plant sterols for anticipated initial production requirements and is negotiating for long-term supply contracts.

Forbes Medi-Tech Inc. is dedicated to the research, development and commercialization of innovative nutraceutical and pharmaceutical products derived from nature. By extracting plant sterols from pulping by-products, Forbes is developing cholesterol-lowering agents to be used both as functional food ingredients and pharmaceutical therapeutics in the battle against heart disease. Forbes is also developing innovative fermentation technology that converts plant sterols into pharmaceutical fine chemicals, essential in the production of various pharmaceutical steroids such as contraceptive agents and anti-inflammatories. Phytrol(TM) and CardioRex(TM) are trademarks of Forbes Medi-Tech Inc.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. This News Release may contain certain forward-looking statements. Actual results may differ from those of forward-looking statements and those differences may be material. Further, the business of the Company is subject to numerous risk factors.

     Forbes Medi-Tech Inc.
     Don Lay, 604/681-8976
     Website: www.forbesmedi.com
     Email: [email protected]
     or
     Forbes Medi-Tech Inc.
     Mark Reis, 604/689-5899
     Email: [email protected]