Forbes Sells Reducol Rights to MHT as Part of Liquidation

The Company expects that the net proceeds of the Liquidation will be in the range of Cdn $0.08 and Cdn $0.13 per share and will be distributed to shareholders within approximately six months following completion of the Asset Sale.

Jul 15 2010 --- Forbes Medi-Tech Inc. has entered into an agreement which will effect the sale of substantially all of its assets to MHT, LLC an affiliate company to Marco Hi-Tech JV LLC. Following the completion of the Asset Sale, Forbes intends on settling all of its contractual obligations, appointing a liquidator (Abakhan & Associates Inc.) to finalize and wind-up its affairs, and distributing the resulting net proceeds to its shareholders. The Company expects that the net proceeds of the Liquidation will be in the range of Cdn $0.08 and Cdn $0.13 per share and will be distributed to shareholders within approximately six months following completion of the Asset Sale.

Charles Butt, President and Chief Executive Officer of Forbes, said, "The last several years were very difficult for many businesses and shareholders, and Forbes is no exception. Historically, Forbes was funded and structured as a publicly traded pharmaceutical development company with a revenue generating nutraceutical business. Following the closure of our pharmaceutical development program in 2008, the Company made significant attempts to expand its nutraceutical business through acquisition funded by equity financing. However, with the fundamental shift in the sentiment of the capital markets in general, we felt compelled to re-examine our long-term plan. Consequently, the Company's Board of Directors, in the interest of stakeholders, ultimately determined that Forbes should divest its Reducol assets and distribute the net proceeds to its shareholders."

Forbes has entered into an agreement dated July 9, 2010 with MHT, pursuant to which it has agreed to sell substantially all of its Reducol assets, including all of its inventories, patents, trademarks and related businesses. The purchase price payable to Forbes pursuant to the Asset Sale is approximately US$1.4 million subject to inventory adjustments. Closing of the Asset Sale is conditional on obtaining Forbes shareholder approvals, and other customary conditions, including obtaining consents to the assignment of the contracts that are proposed to be assumed by MHT. The agreement between Forbes and MHT provides for, among other things, a non-solicitation covenant by Forbes, subject to customary provisions that entitle Forbes to consider and accept a superior proposal in respect of a purchase of its assets or all of the assets or share capital of Forbes, a right in favour of MHT to match any superior proposal and the payment by Forbes to MHT of an expense reimbursement of US$150,000 if the Asset Sale is not completed as a result of the superior proposal.

Forbes shareholders will be asked to approve the Asset Sale at an annual and special meeting of shareholders which is expected to occur in mid August 2010. Shareholders will also be asked to approve the Liquidation at the Meeting. The Board of Directors of the Company has unanimously recommended that shareholders vote in favour of both the Asset Sale and the Liquidation. Both the Asset Sale and the Liquidation will require the approval of two-thirds of Forbes shareholders present in person or represented by proxy at the Meeting. The President and CEO, each member of the Board of Directors and senior officers of Forbes have indicated to the Company that they intend on voting all their shares owned or controlled in favour of both the Asset Sale and the Liquidation.

In connection with the wind-up of Forbes, it is expected that between Cdn $0.08 and Cdn $0.13 per share will be distributed to shareholders of record in one distribution which will include the cash proceeds realized under the Asset Sale less any payments made in respect of Forbes's remaining ongoing costs and liabilities. The distribution is expected to occur within three to six months following completion of a claims procedure that will be established under the supervision of the appointed liquidator, Abakhan & Associates Inc.