Forbes Medi-Tech Inc. (the Company) announced that MHT, LLC has exercised their “right to match” in respect of the offer of Pharmachem Laboratories, Inc. to acquire substantially all of the assets of the Company (the “Pharmachem Offer”), as announced in the Company’s news release of July 29, 2010.

Forbes Medi-Tech has entered into an amended agreement with MHT, in connection with the exercise by MHT of their right to match the Pharmachem Offer. The purchase price payable by MHT for the purchased assets has undergone an increase from approximately US$1.4 million to US$1.76 million, in each case subject to inventory adjustments.

At a meeting held on Thursday, August 5, 2010, Forbes Medi-Tech Inc.’s Board of Directors agreed to accept the amended offer of MHT under the terms of the Agreement with MHT. The MHT Amended Agreement has substantially the same terms as the MHT Original Agreement, except for the increase in the purchase price. The same terms include with respect to the right of Forbes to consider and accept a superior proposal and, the right in favor of MHT to match any superior proposal.

The expense reimbursement fee payable by Forbes to MHT if the asset sale is not completed because of the superior proposal was increased in the MHT Amended Agreement to $200,000. This is because of MHT’s additional expenses due to the offer process.

Forbes intends on settling all of their contractual obligations, appointing a liquidator (Abakhan & Associates Inc.) to finalize and wind-up their affairs, and distributing the resulting net proceeds to their shareholders. This is following the completion of the sale of all or substantially all of the assets of the Company.

Forbes Medi-Tech Inc. expects the net proceeds of the Liquidation to be in the range of Cdn $0.14 to Cdn $0.19 per share. The Company’s Board of Directors confirms that they continue to support the MHT transaction. They confirm their unanimous conclusion that the transaction with MHT is in the best interests of the Company and is fair to the Company’s shareholders and their recommendation that shareholders vote in favor of the Asset Sale transaction.

Headquartered in Vancouver, British Columbia, Forbes Medi-Tech Inc. is a life sciences company. They focus on evidence-based nutritional solutions, and are a leader in nutraceutical technology. The Company is a provider of value-added products and cholesterol-lowering ingredients. These are for use in functional foods and dietary supplements. They successfully developed and commercialized their Reducol™ plant sterol blend. Reducol™ has undergone clinical trials in various matrices and has been shown to lower “LDL” cholesterol levels safely and naturally.

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