Killick Capital

OTTAWA, Aug. 6 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP - News; "PharmaGap" or "the Company") and the Ottawa Hospital Research Institute ("OHRI") today released initial testing results for PharmaGap's cancer drug GAP-107B8 (formerly PhG-alpha-1). Led by Dr. Barbara Vanderhyden, OHRI researchers conducted cell growth (proliferation) assays using nine (9) ovarian cancer cell lines in order to assess the efficacy of the drug as a single agent therapeutic and in combination with the current standard of care chemotherapeutic agent used to treat the majority of ovarian cancer cases each year in North America. The ovarian cancer cell lines tested at the OHRI were derived from human carcinomas and included serous, endometrioid and clear cell subtypes.

Results of testing conducted by Dr. Vanderhyden's group showed that GAP-107B8 as a single agent was a potent inhibitor of ovarian cancer cell proliferation. Over the 48-hour test period, a statistically significant reduction in cell proliferation was observed in eight (8) of the nine (9) ovarian cancer cell lines tested, including in two (2) cell lines resistant to the standard of care chemotherapy. GAP-107B8 (25 (micro)m) inhibited cell proliferation by 30% to 79% compared with untreated cells, with a greater than 50% inhibition in proliferation being observed in four (4) of the eight (8) cell lines. One (1) of the resistant cell lines, when treated with GAP-107B8 alone, showed the highest reduction in proliferation of all the cell lines tested (79% relative to the untreated control group, and 78% relative to a control group treated with the chemotherapeutic agent alone). "We are very pleased that the data clearly show an impact of this peptide on some of our most aggressive ovarian cancer cell lines" stated Dr. Vanderhyden.

Figures from the U.S. National Cancer Institute ("NCI") indicate that in 2009 ovarian cancer was anticipated to afflict almost 22,000 women and that 14,600 would succumb to the disease (www.cancer.gov). Despite advances in radiation therapy and chemotherapy, the 5-year survival rate for advanced stages of ovarian cancer is less than 30 percent, primarily due to the difficulty of early detection for this type of cancer and the common recurrence of chemoresistant disease.

Robert McInnis, President and Chief Executive Officer of PharmaGap stated, "We are delighted that Dr. Vanderhyden's laboratory at OHRI has reported compelling results for GAP-107B8. Independent validation of the potency of our novel drug compound by a world-class research facility is an important step in our program to develop this novel anti-cancer agent. As a result of these positive results we look forward to continue working with the OHRI in the GAP-107B8 testing program with additional in vitro studies and in animal models of ovarian cancer developed by Dr. Vanderhyden's group."

Dr. Vanderhyden is a Senior Scientist, Cancer Therapeutics at the Ottawa Hospital Research Institute and a Professor in the Departments of Cellular & Molecular Medicine and Obstetrics & Gynecology at the University of Ottawa. She holds the Corinne Boyer Chair in Ovarian Cancer Research. She has published over 60 peer-reviewed journal papers primarily in the area of ovarian cancer and collaborates extensively with many pharmaceutical and biotechnology companies focused on the development of therapies for ovarian cancer.

About the Ottawa Hospital Research Institute

The Ottawa Hospital Research Institute (OHRI) is the research arm of The Ottawa Hospital and is an affiliated institute of the University of Ottawa, closely associated with the University's Faculties of Medicine and Health Sciences. The OHRI includes more than 1,300 scientists, clinical investigators, graduate students, postdoctoral fellows and staff conducting research to improve the understanding, prevention, diagnosis and treatment of human disease. www.ohri.ca

About PharmaGap Inc.

PharmaGap Inc. (TSX-V: GAP - News), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap's GAP-107B8 is a novel peptide drug designed to inhibit the activity of protein kinase C ("PKC"), a cell signalling enzyme implicated in certain types and stages of cancer. Independent peer-reviewed research has demonstrated that the overexpression of PKC plays a role in the development of ovarian cancer. During 2009 the Company embarked on a program of independent validation of its drug compounds, resulting in testing at OHRI, the National Cancer Institute (results pending) and other independent laboratories. For more information on PharmaGap please visit the Company's website at www.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.

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

(St. John’s, Newfoundland and Labrador, August 6, 2009) Verafin, a leader in anti-money laundering (AML) and fraud detection solutions and a strategic alliance partner of CUNA Strategic Services, Inc., announced today the signing of its 200th U.S. credit union customer, OnPoint Community Credit Union located in Portland, Oregon.

Verafin’s BSA/AML compliance and fraud detection software will help OnPoint Community Credit Union, which has 15 branches and $2.8 billion in assets, detect suspicious activity and mitigate financial crime, while also ensuring compliance with the Bank Secrecy Act, USA Patriot Act and FACTA Red Flag regulations.

“Verafin was the right choice for OnPoint on many levels when it came to automating our AML and BSA program,” said Rob Stuart, president and CEO of OnPoint Community Credit Union. “It provides the complete package for AML and fraud detection and integrates easily with our core processing system. During our evaluation of BSA/AML solutions, we were also really impressed with the satisfaction levels among existing Verafin customers and the sheer sophistication of the product itself.”

Unlike most providers which use complicated rules-based systems, Verafin uses a next generation behavior-based AML system. Its advanced artificial intelligence replicates human reasoning, which creates member profiles and performs transaction monitoring to detect suspicious and fraudulent activity.

“Verafin truly is the next generation in AML and fraud detection and provides credit unions with the right tool to meet rigid regulatory requirements and help detect fraud,” said Wes Millar, senior vice president of CUNA Strategic Services. “Reaching the 200 milestone is not only a testament to the industry-wide appeal of Verafin’s advanced solution, but is also a reflection of the solid reputation Verafin has in this industry.”

“Financial institutions are playing an increasing role in the fight against money laundering and terrorist financing, and with this comes increased regulatory and compliance demands,” said Jamie King, president and cofounder of Verafin. “Our behavior-based system is unmatched in the industry, and its advanced ability to detect suspicious and fraudulent activity is being widely recognized by credit unions and banks across North America. OnPoint Community Credit Union marks our 200th credit union customer in the U.S. and we are very pleased to have them on board.”
In total, over 400 credit unions and banks in North America have implemented Verafin for BSA compliance, FACTA Red Flags and fraud detection. Verafin is the exclusive provider of BSA/AML and fraud detection software for CUNA Strategic Services and 43 credit union leagues in the United States.

About Verafin
Verafin is a leader in anti-money laundering and fraud detection solutions, with over 400 financial institution customers that span numerous core processing systems and a broad asset range. Verafin helps financial institutions comply with the Bank Secrecy Act, the USA PATRIOT Act, and FACTA Red Flag regulations, while also helping to protect them against bank fraud. For more information, go to www.verafin.com or call 1.877.368.9986.

About CUNA Strategic Services
CUNA Strategic Services, owned jointly by the Credit Union National Association (CUNA) and the state leagues, provides credit unions with access to high quality products, services, and technologies delivered with a competitive advantage made possible through volume pricing and strategic program development. CUNA serves more than 90 percent of America’s 7,800 credit unions, which are owned by more than 89 million consumer members. Credit unions are not for profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit strategicservices.cuna.org.

For More Information:

Karyn Murphy
Public Relations Specialist
Verafin Inc.
1-877-368-9986, 1-709-690-5956
Karyn.Murphy@verafin.com

Kelly Schrader
Senior Vice President/Marketing & Member Services
OnPoint Community Credit Union
1-503-273-2230
Kelly.Schrader@onpointcu.com

Tom Lybeck
Alliance Manager
CUNA Strategic Services
1-608-231-4109
Tlybeck@cuna.coop