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Alfacell Announces ONCONASE(R) Distribution and Marketing Agreement with Megapharm for Israel
Date:7/15/2008

SOMERSET, N.J., July 15 /PRNewswire-FirstCall/ -- Alfacell Corporation (Nasdaq: ACEL) today announced that it has entered into a distribution agreement with Megapharm Ltd., a leading pharmaceutical company in Israel, for the commercialization of ONCONASE(R) (ranpirnase) in Israel. ONCONASE, the company's lead drug candidate, recently completed an international confirmatory Phase IIIb clinical trial for unresectable malignant mesothelioma (UMM).

Under the agreement, Alfacell has granted Megapharm exclusive rights in the defined territory for the marketing, sales and distribution of ONCONASE. Alfacell will receive 50% of all sales in the territory. In addition, Alfacell will manufacture and supply the product to Megapharm, while Megapharm will be responsible for all activities and costs related to regulatory filings and commercial activities in the territory.

Miron Drucker, CEO and founder of Megapharm, said, "Having been interested observers in the development of ONCONASE, a first-in-class anti-cancer agent, we are proud to include this unique product in our oncology portfolio. We believe that ONCONASE will prove to be a promising new treatment option for patients suffering from mesothelioma."

"We are very pleased to add Megapharm to our growing list of important regional partners for ONCONASE," said Kuslima Shogen, chief executive officer of Alfacell. "Megapharm's role as a leader in biotechnology marketing in Israel provides Alfacell with an ideal partner to maximize the potential of ONCONASE in this region. We look forward to a successful collaboration with Megapharm."

About ONCONASE(R)

ONCONASE is a first-in-class therapeutic product candidate based on Alfacell's proprietary ribonuclease (RNase) techn
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SOURCE Alfacell Corporation
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