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XKEM news..............
NEW BRUNSWICK, N.J., Dec 9, 2003 (BUSINESS WIRE) --

Xechem International (OTCBB: XKEM) today announced that it has entered into a binding letter of intent to acquire all the outstanding shares of Ceptor Corporation, a privately held drug-targeting company with a focus on neuromuscular diseases. Xechem will issue $6,000,000 of Convertible Preferred Stock to Ceptor's shareholders, and assume approximately $300,000 of debt. Under the terms of the agreement, no shares will be converted until at least 12 months from the closing of the transaction, which is to occur no later than January of 2004. In addition, Ceptor shareholders will receive certain milestone payments relating to the progress that Ceptor's compounds achieve in human clinical trials, and the filings of phase , phase and New Drug Application (NDA) with the Food and Drug Administration (FDA).

With its proprietary NEURODUR(TM) and MYODUR(TM) drug-targeting technologies, Ceptor has already successfully demonstrated, in animal trials, effective targeting and reduced dosage requirements for disorders such as Muscular Dystrophy, Multiple Sclerosis (MS), and Epilepsy. It is anticipated that patients will suffer significantly less side effects with the Ceptor formulations. Ceptor has also received Orphan Drug Status from the FDA for the use of Leupeptin, as a therapeutic treatment for traumatic injuries.

NEURODUR(TM) and MYODUR(TM) act by binding to specific membrane transporters which enable them and their 'passengers'to be deposited within the cell, skeletal and cardiac muscle in the case of MYODUR(TM), and neuronal cells in the case of NEURODUR(TM). The protease Calpain is the intended target in these instances. This targeting technology, however, can be applied to any drug having a suitable attachment site for transport to skeletal muscle, cardiac muscle and both the central and peripheral nervous system.

Ceptor was founded by Drs.'Alfred Stracher, Distinguished Professor and Chairman of Biochemistry, and Leo Kesner, Professor Emeritus, of Downstate Medical Center in Brooklyn, New York. Dr. Stracher is also the co-editor of the prestigious journal, Drug Delivery. 'We are excited about the merger with Xechem International', he stated. 'Xechem International, with its proprietary HEMOXIN(TM) for Sickle Cell Disease (SCD), will form the basis of a powerful Orphan Drug platform.'

Dr. Stracher elaborated on Ceptor's projected milestones for 2004, 'With the help of Xechem's infrastructure, its regulatory and marketing expertise, Ceptor believes it will be able to file two to three Investigative New Drug (IND) applications with the FDA in the upcoming year. We are also confident that we will also submit several new applications for Orphan Drug Status indications during '04'. Drs.' Stracher and Kesner will serve as consultants to Xechem.

William Pursley, Vice-Chairman and President of Xechem International commented on the transaction, 'Ceptor represents the perfect strategic fit for Xechem's orphan platform. MYODUR(TM) and NEURODUR(TM) can definitively address several neuromuscular orphan diseases where there is little hope today. We will focus first on getting MYODUR(TM) into the clinic for Muscular Dystrophy.'

Dr. Ramesh Pandey, Chairman and CEO of Xechem International commented, 'Ceptor's technology is unique. With Xechem's recently expanded management team, we now have the bandwidth to expand our pipeline. Bill Pursley has the experience and track record to spearhead Ceptor's products through the regulatory and marketing cycle. We welcome the distinguished Ceptor scientists to the Xechem team

Xechem International, Inc. is a fully integrated biopharmaceutical company focusing on proprietary technologies for orphan diseases. Its mission is to increase the quality and quantity of life of the people who suffer from these diseases.