05.29.2007

PharmaGap Reports Improved Efficacy of Cancer Drug Compound in
Queen's University Study

Ottawa, Ontario/ May 29, 2007 – PharmaGap Inc. (TSX-V: GAP) (“PharmaGap” or “the Company”), a Canadian biotechnology company developing novel compounds to treat cancer, today announced results from a second phase of testing of the Company’s lead cancer drug, PhGalpha1, at Queen’s University (“Queen’s) in Ontario.

Data generated by Dr. Michael Adams in Queen’s Department of Pharmacology and Toxicology confirmed that the potency and duration of action of the Company’s lead drug, PhGalpha1, was significantly increased as a result of minor modification of  the drug’s molecular structure.  Similar to an earlier study at Queen’s completed in December 2006; this latest data affirms the potential of PhGalpha1 for use as a therapeutic agent in patients.

Dr. Adams, in commenting on these results, said: “These recent laboratory studies confirm that this modified version of PhGalpha1, an inhibitor of protein kinase C (PKC), has an extended effect when injected intravenously in animal models.  From my perspective as an experienced drug developer and pharmacologist, this data supports continued development of the PharmaGap compound.”

This latest study at Queen’s showing enhanced potency and duration of action with PhGalpha1 follows the recently announced data from Memorial Sloan-Kettering Cancer Center in New York City (“Memorial Sloan-Kettering”).  There, researchers led by Dr. Gary Schwartz showed that PhGalpha1 boosts the effect of a well-known chemotherapeutic agent in treating chemo-drug resistant cancers by approximately 50%.  

Robert McInnis, President and C.E.O. of PharmaGap, said:  “We are delighted that Dr. Adams’ studies show an improved effect for PhGalpha1 and that he remains committed to continue working with PharmaGap.  PharmaGap’s association with Queen’s, similar to our collaboration with researchers at Memorial Sloan-Kettering, is an important validation of our Company’s novel science and potential to introduce important new compounds to treat cancer.”

About Queen’s University
Queen’s University is located in Kingston, Ontario.  With 17 faculties and schools, approximately 20,000 students and 2,400 faculty members, Queen’s is one Canada’s leading research-intensive universities (www.queensu.ca).

About Dr. Michael Adams
Dr. Michael Adams, currently a Full Professor in the Department of Pharmacology and Toxicology, has cross-appointments in the Department of Urology and the School of Kinesiology and Health Studies.  He has had extensive involvement in research focused on the development of new therapeutic strategies in the prevention and treatment of cardiovascular diseases, sexual dysfunction, and cancer.  Dr. Adams has published more than 100 scientific papers and chapters and has nearly 30 issued patents worldwide, and 77 patent applications filed.  He has previously received the Basmajian Award for Excellence in Medical Research at Queen's University (1994), the Young Investigator Award of the Canadian Hypertension Society (1997) and the Education Award, Faculty of Health Sciences, Queen’s University (1998).  He was previously a Heart & Stroke Foundation Senior Research Scholar (1988-1993) and held a Career Award in Medicine from the Medical Research Council-Health Research Foundation/PMAC (1992-07). 

About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel therapeutic compounds for the treatment of cancer. PharmaGap's research platform targets cellular signaling pathways controlled by protein kinase C (PKC) isoforms. PharmaGap's lead drug compound, PhGalpha1, is in preclinical development. The Company's strategy is to out-license drug compounds to larger life sciences companies at the preclinical stage. For more information please visit the Company's website at www.pharmagap.com.

For information relating to this release, please contact:
Robert McInnis, President & CEO                
(613) 990-9551 bmcinnis@pharmagap.com     

Note: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.  No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein.  This release contains forward-looking statements that may not occur or may change materially.