Feb 02, 2005

HEDLEY SELLS INSTI® DISTRIBUTION RIGHTS TO MANUFACTURER FOCUSES ON PHARMACEUTICAL ACQUISITIONS

MISSISSAUGA, ONTARIO (February 2, 2005). Hedley Technologies Inc. (“Hedley”, TSX Venture: HED) announces that it has returned the INSTI® HIV-1/HIV-2*/HIV-2 Rapid Antibody Test Kit master distribution rights, obtained under a Distribution Agreement dated March 4, 2003, to the manufacturer, BioLytical Laboratories Inc. In the future, Hedley may act as non-exclusive distributor for the INSTI® in selected territories. Hedley continues to focus its efforts on the pharmaceutical sector and remains committed to the previously announced acquisitions of Axxess Pharma Inc. (“Axxess”) and Medicor Pharmaceuticals Inc. (“Medicor”).

“We are confident that the return of the INSTI® distribution rights will prove to be beneficial to all parties. This transaction will add approximately $935,000 to our cash resources which in turn positions us to continue with the previously announced acquisitions of Axxess and Medicor” said Joseph Arcuri, Hedley’s Chief Financial Officer.

“The return of these distribution rights allows us to concentrate our efforts in the pharmaceutical market and strengthens our ability to execute our business strategy”, said René Goehrum, Chairman and Chief Executive Officer of Hedley. Mr. Goehrum added “We are excited about entering a growing $20 billion dollar market. The anticipated acquisitions of Axxess and Medicor, coupled with other opportunities in the pharmaceutical market that we have identified, will allow us to become a significant participant in the Canadian pharmaceutical industry”.

Hedley’s focus is to source pharmaceutical products that have been successfully developed and are proven to be safe and effective; manage the regulatory process through to product registration (approval); and market these products in Canada and where applicable internationally through partnerships. These products will compete in both the branded and generic market segments and will not require further product development investment other than regulatory costs.

Hedley Technologies Inc. is a publicly traded life science company that acquires or licences products and commercializes proprietary science-based technologies that advance human health, public safety. Hedley’s common shares are listed for trading on the TSX Venture Exchange (TSXV) under the symbol HED.

For additional information contact:

René C. Goehrum, Chairman and CEO
Joseph Arcuri, Chief Financial Officer

http://www.hedleytech.com
Tel: (905) 206-0013
Fax: (905) 206-1413
Email: rgoehrum@hedleytech.com
Email: jarcuri@hedleytech.com

http://www.axxesspharma.com


This press release may contain information or statements that are forward-looking. The contents herein represent our judgment, as at the release date, and are subject to risks and uncertainties that may cause actual results or outcomes to be materially different from the forward-looking information or statements. Potential risks may include, but are not limited to, those associated with clinical trials, product development, future revenue, operations and profitability and obtaining regulatory approvals.

The TSX Venture Exchange assumes no responsibility for the accuracy of this release and neither approves nor disapproves of same.

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