Xechem International Inc. (fka XKEM)

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XECHEM ANNOUNCES SUCCESSFUL CAPITAL RAISE BY CEPTOR CORPORATION (XECHEM RECEIVES APPROXIMATELY $1.28 MILLION AS PART OF THE TRANSACTION)

NEW BRUNSWICK, N.J. – February 23, 2005 − Xechem International Inc. (OTC BB: XKEM) today announced that its corporate spinoff, Ceptor Corporation, has successfully completed a $12,000,000 private offering and is now an independent company whose shares are traded on the NASD over the counter bulletin board, under the symbol CEPO. Ceptor is engaged in the development of technology for the treatment of neuromuscular and neurodegenerative diseases such as muscular dystrophy, multiple sclerosis (MS) and amyotrophic lateral sclerosis (ALS). As a result of the transaction, Xechem continues to hold 3,386,563 shares of Ceptor or approximately 14% on a fully diluted basis, assuming full conversion of all shares sold in the private placement and other exercises and conversions. In addition, pursuant to Xechem’s spin off agreement with Ceptor, Xechem has been paid $1,279,125 by Ceptor and is entitled to receive an additional $720,875 from future Ceptor financings in redemption of Ceptor stock held by Xechem, following which, the redemption pursuant to the spin off agreement will be complete. The proceeds of Xechem’s sale of Ceptor’s stock, pursuant to the redemption provision of the spin off agreement, are being used for Xechem’s internal working capital purposes. Ceptor stock closed at $5.80 per share on Tuesday, February 22, 2005.

According to Xechem’s Chairman & CEO, Dr. Ramesh Pandey, “The overwhelming response of the investment community to Ceptor’s offering is very gratifying to Xechem and speaks volumes as to Ceptor’s powerful technology. We expect our remaining shares of Ceptor will prove to be an excellent investment and substantial asset. The Ceptor asset can potentially support Xechem’s developmental efforts with respect to the Sickle Cell Drug NICOSAN™/HEMOXIN™. Under the spinoff agreement with Ceptor, each subsequent sale of stock by Ceptor triggers redemption from Xechem of 10% of the amount of stock sold (at the price sold by Ceptor), until Xechem receives $2,000,000, in the aggregate, on redemption of its Ceptor shares.”