CALCOL (CLCL-OTC) to MAKE and SELL ZER QUICK AIDS TEST KITS

(PRWEB) July 22, 2001

CALCOL (CLCL-OTC) TO MAKE AND SELL ZER QUICK AIDS TEST KITS

CALCOL INC. & ZER HITECH LTD.

TO MAKE, SELL AND DISTRIBUTE

QUICK AIDS TEST KITS AT LOW COST FOR HIGH IMPACT AIDS AREAS (AFRICA, CARIBBEAN, SOUTH ASIA, EASTERN EUROPE, FORMER SOVIET UNION)

OFFERS TEST KITS AT LOW COST ON LARGE SCALE FOR MASS DISTRIBUTION TO MAJOR RELIEF AGENCIES AND HUMANITARIAN ORGANIZATIONS : MASS SCREENING OF INFECTED COULD LEAD TO DISEASE PREVENTION, TREATMENT, AND CONTROL

CLEVELAND, OHIO USA, BEIJING, CHINA, AND JERUSALEM ISRAEL (7/20/01 12:10 PM EST):

CALCOL INC. (CLCL-OTC) a development stage US holding company for China manufacturing companies in pharmaceuticals (Calcol Changbaishan Pharmaceutical Ltd. Shenzhen, China) and soft drinks (Sanhe Meile Soft Drinks Ltd. Beijing, China), announced today that it has signed a binding letter of intent effective July 19, 2001, with ZER HITECH LTD Jerusalem, Israel, to immediately commence to make, sell, and distribute Quick AIDS Test Kits at a low cost on a large scale for high impact AIDS areas (especially Africa, the Caribbean, and South Asia and certain countries of the former Soviet Union). The Quick Aids Test Kits manufactured by Zer are currently sold in the following countries: Kenya, Nigeria, Brazil, Lithuania and certain countries of the former Soviet Union.

The companies, which have been associated since l995, announced that their new high intensity effort to mass market the test kits at a low cost was urgently prompted by recent announcements of major efforts by the UNAIDS organization, Global Business Council, the Coca-Cola Company (KO-NYSE) and the Pfizer Foundation (PFE-NYSE) and other major international organizations and corporations to raise $ 7-$ 10 billion dollars per year for mass distribution of information, prophylactics, diagnostics (including test kits), and pharmaceuticals in high impact AIDS areas especially in Africa where HIV has infected an estimated 25 million people. CALCOL confirms it has conveyed an offer to supply the low-cost Quick AIDS Test Kits in large quantities to the companies and organizations involved and has received some preliminary indications of interest.

Amb. Richard A. Holbrooke, Head of the Global Business Council, coordinating a private sector response to UN Secretary General Kofi AnnanÂ?s appeal said: Â?I have come to believe that despite all the major problems we face in the world today—terrorism, nuclear weapons, drugs—that AIDS is the greatest threat.Â? With approximately 36 million people worldwide afflicted with AIDS, some 25 million in Africa alone (an estimated 1 in 4 is infected in South Africa), and rapid spread of the disease in India, China, and eastern Europe. (HolbrookeÂ?s New Job: Urging Business to Fight AIDS,June 19, 2001(Reuters). Recently Â?Coca-Cola Company offered its distribution and marketing expertise to fight AIDS in AfricaÂ?, UNAIDS Associate Director Robert Hecht said that he hoped many other companies would also pledge their resources. “It is clear that Coca-Cola is not just interested in using money but in using its other strengths and assets…If we can get dozens of other companies involved in a similar way it will have a major impactÂ?. Under a three-year deal, Coca-Cola is offering its transport and marketing expertise to boost education and prevent the spread of the disease.Â? (UNAIDS Urges Business to Help in AIDS Fight Reuters June 20, 2001). Â?The Coca-Cola system in Africa will deploy its unique infrastructure and presence in local communities to support local prevention, education and treatment programs. In Nigeria, Coca-Cola will support the work of the National HIV Sero- Prevalence Sentinel Surveillance Survey for women attending antenatal clinics. The purpose of this program is to track HIV infection levels through institutions that provide access to populations that are of particular interest in combating the epidemic. The Coca-Cola system in Nigeria will provide marketing support to develop awareness materials on the sentinel sero- surveillance program, assist in the printing and distribution of 10,000 pamphlets, provide expertise in logistics and help distribute testing kits in all of the Nigerian states.Â? (UNAIDS Signs Up Coca-Cola in Battle Against AIDS :The Coca-Cola Africa Foundation Will Co-ordinate Local Support For AIDS Programs Across the Continent GENEVA, June 20 /PRNewswire) Also, Â?Earlier this month, the Pfizer Foundation announced that it is funding construction and staffing of a state-of-the-art AIDS clinic in Kampala that will treat more than 50,000 patients annually and provide training to African health care professionals for the diagnosis, care and treatment of HIV/AIDS patients. The company also announced in June that it would offer its antifungal Diflucan at no charge to AIDS patients in the 50 least developed countries, including Uganda, as identified by the United Nations and World Health Organization.Â? (Major Study in Uganda to Identify Best Community-Based Approaches for HIV/AIDS Prevention New Partnership Program Involving UNAIDS, UNICEF, Uganda AIDS Commission and Pfizer Foundation June 25, 2001/PRNewswire).

Commercial tests retail for $ 20.00 per test, and tests of whole blood for HIV1+2 or Hepatitis B in a clinic or medical testing laboratory may cost much more, mass production in China may enable the Companies to produce and distribute large quantities (potentially tens of millions of units per year) of the Zer Quick AIDS Test Kits for mass screening for the low sales price to international agencies and governments of approximately US$ 1.95 (ONE DOLLAR NINETY FIVE CENTS) per unit, with the possibility that efficiencies of mass production may make a lower price possible. Initially Zer will make samples and initial production runs available for purchase from their manufacturing facilities in Israel where Zer currently hasthe capability to produce 5 million units per year. The companies believe their new cooperative venture will make possible mass screening of tens of millions of people throughout the world under the humanitarian relief organizations. If pregnant mothers can be diagnosed in time, for example, they can possibly then be treated with low doses of AZT and other drugs which have been proven to prevent transmission of HIV/AIDS to the next generation. The possible impact of such a program on world health, control of the spread of disease, treatment, and prevention of disease transmission could be very significant, in the belief of the companies.

Norman C. Kaplan, Chairman and President of CALCOL INC. states:

Â?We are grateful to have such a highly recognized company such as ZER as our partner in dealing with this major international health emergency. Headed by two great partners, Dr. Avi Zer and Dr. Tami Zer, both holding Ph.D. degree in medical sciences and life sciences respectively from the highly prestigious Hebrew University of Jerusalem. Under the new agreement, ZER HITECH LTD. (Â?ZERÂ?) has agreed to be responsible for patent and trademark registration and health agency registration (the expense of registrations is included in the budget of the project), product licensing, R&D, know-how, technical support, quality control, and manufacturing set up (in terms of the high tech aspects of the products such as the testing strips, antibodies and so forth). We, CALCOL INC. (Â?CALCOLÂ?) have agreed to be responsible for the funding and financial arrangements, large scale manufacturing, marketing and distribution agreements with the major customers. Sales prices of the products and distribution agreements shall be negotiated by CALCOL and ZER working together. Sales prices shall be kept to as low-cost as feasible while earning a reasonable profit. Wherever possible, the relief organizations or governments shall be asked to pay for products with substantial deposits in advance, by L/CÂ?s and/or on delivery in cash; and shall be asked to assist the companies with grants, loans and reimbursements to provide capital for manufacturing equipment and expenses for health agency registrations and mass distribution of the products.

Â?Both parties promised best efforts in moving as expeditiously as possible to Â?close the loopÂ? in all aspects of the project. Both parties promised confidentiality in all aspects of the technology, manufacturing process, costs (other than necessary disclosures to customers and/or government agencies), and marketing agreements. Both parties promised non-circumvention of the other in new manufacturing, marketing, and distribution arrangements .

Â?Both parties have agreed to share 50-50 (FIFTY PERCENT EACH) net profits on all sales of products to the international relief organizations such as Global Business Council, UNAIDS, US government, and other foreign governments made through this agreement ( including sales of products initially wholly manufactured in Israel distributed through the agreements negotiated by CALCOL in cooperation with ZER while the manufacture, marketing and distribution of larger scale production of the products is in development). Excluded from this agreement are ZERÂ?s pre-existing business arrangements before this date for marketing and sales of the products on a proprietary basis.

ABOUT ZER HITECH LTD.

The ZER GROUP, a leading biotechnology company, was founded in

1976 by Avraham Zer Ph.D. (Medical Sciences, Hebrew University of Jerusalem) and Tami Zer Ph.D. (Life Sciences, Hebrew University of Jerusalem). ZER concentrates on fertility related and infectious disease products – research, development and manufacture of Diagnostic assays (ZER HITECH), and also has a network of medical service laboratories servicing hospitals, private laboratories and medical institutions in Israel (ZER LABORATORIES). The companies comprising the Zer Group, although separate and independent entities, work closely together to provide complementary services and products through close knit cooperation on quality control, clinical testing and information feedback. ZER HITECH LTD. develops, manufactures and markets One step assays. ZER has on staff 60 personnel of whom 48 have scientific qualifications.

ZER HITECH LTD. develops, manufactures and markets One step assays: PREGNANCY tests, Dipstrip, Card and Midstream formats. LH-OVULATION tests, Card and Midstream formats FSH-MENOPAUSE tests, Card and Midstream formats AMNIOTEST MONOLINE pregnancy test In addition, ZER has developed and manufactures Innovative HIV 1+ 2 for Serum,Plasma and Whole Blood, as well as Hepatitis B; Drugs of Abuse; Chlamydia; Strep A and B; H. pylori; Occult blood and other assays. Core business In-vitro and one -step diagnostics kits Market regions: Europe, Far East, South America.

ABOUT CALCOL INC.

CALCOL INC. (CLCL-OTC) (Delaware), a development stage company, was originally a holding company for pharmaceutical patents and products. Based upon research by Mr. Kaplan at the University of California San Diego (Biology Department), the Salk Institute for Biological Studies in La Jolla, California (Autoimmune and Neoplastic Disease Laboratory), and Harvard University (Physics Department), the Company pioneered the pharmaceutical development of Delta-9-Tetrahydrocannabinol (THC), the active ingredient in medicinal marijuana, for the treatment of nausea associated with cancer chemotherapy and loss of appetite associated with AIDS. The Company also developed and tested (in vitro at the Salk Institute, and in vivo in mouse models in conjunction with the National Cancer Institute) a derivative of THC (THC-mustard) as potential site-specific alkylating agent (anti-tumor drug) with antinausea properties. Mr. Kaplan received one patent, and published two abstracts and two scientific papers on this research. CALCOL INC. sold non-exclusive distribution rights in its THC/dronabinol product to BARR LABORATORIES (BRL-NYSE) in l988 on a 15 year agreement. CALCOL INC. retains some rights in the THC/dronabinol product. In l994, CALCOL INC. invested in the purchase of 60% interest in a pharmaceutical factory in Shenzhen,China CALCOL CHANGBAISHAN PHARMACEUTICAL CO. LTD. and an 80% interest in a soft drink concentrate and bottling factory in Beijing, China, SANHE MEILE SOFT DRINKS CO. LTD. (photographs of the finished soft drink concentrate plant and bottling plant under construction and information about the Company appear on CALCOLÂ?s website http://www.calcol.com). CALCOL INC. common stock (par value $ .001) trades OTC under the symbol Â?CLCLÂ? (Cusip #128699) on the Pink Sheets (www.pinksheets.com) with marketmakers FLTT FLTTRC Fleet Trading Jersey City, NJ 800 526 3041 HILL HT025 Hill Thompson Magid & Co. OTC Trading – Jersey City, NJ 800 631 3083 201 434 8100 HRZG BOBS Herzog, Heine, Geduld, In OTC Trading – Jersey City, NJ 800 221 3600 212 962 0300 MHMY 869 M.H. Meyerson & Co., Inc. OTC Trading – Jersey City, NJ 800 333 3113 201 459 9600 NITE 1147A Knight Secs LP Jersey City, NJ 800 232 3684 212 336 8686 PGON TRADERB Paragon Capital Corp. OTC Trading – Boca Raton, FL 800 521 8877 561 750 3777 SHRP 5939 Sharpe Capital Inc. OTC Trading – New York, NY 800 355 5781 212 791 5658 WIEN 5009 Wien Securities Corp. OTC Trading – Jersey City, NJ 800 624 0050.

Norman C. Kaplan, Chairman and President of CALCOL INC., appears in the 55th Edition of Marquis WhoÂ?s Who In America 2001. Mr. Kaplan, a graduate of the University of California San Diego and Harvard University, was a research scientist in the Autoimmune and Neoplastic Disease Laboratory of Jonas E. Salk MD at the Salk Institute and studied physics with the Nobel Laureates Sheldon Glashow and Steven Weinberg at Harvard University. He is the founder of the Norman C. Kaplan Fund in Water Resource Management of the Hebrew University which sponsored exchange visits between China and Israel and was instrumental in the establishment of diplomatic relations between the two countries. Mr. Kaplan is currently a member of the International Committee of the Belfer Center for Science and International Affairs John F. Kennedy School of Government Harvard University. He received the 60th Anniversary Medal of the Hebrew University in 1988. Vice President of CALCOL INC. is Mr. Ji Jun, Assistant Vice President is Mr. Zhou Hai Ou, the Sr. Vice President and Secretary Treasurer of CALCOL INC. is Mr. David B. Orlean, a former official of the US Department of Justice and President of the Orlean Company of Cleveland Ohio.

This announcement, which is not an offer to buy or sell securities, may contain certain forward looking statements regarding anticipated manufacturing, marketing, sales, and distribution agreements of medical diagnostic test kits and pharmaceutical products with anticipated manufacturing and sales arrangements, and projected sales figures which may or may not be achieved, anticipated pharmaceutical products, anticipated soft drink franchises, trademark, and license agreements, business licenses which may or may not be issued or renewed in the future by the Chinese government or other governments, medical device approvals and licenses which may or may not be issued or approved by various governments and international health agencies, potential sales projections of certain quantities of units of products to humanitarian agencies governments and non-profit organizations and pharmaceutical companies for mass low-cost or free distribution which may or may not be achieved, potential business opportunities in medical device and pharmaceutical manufacture, marketing and distribution and /or other speculative areas in China businesses and business in other high risk countries (such as Africa, the Caribbean, South Asia and the former Soviet Union) which may or may not materialize, construction projects which may or may not be successfully completed, factory production and potential profits market share for goods and services which may or may not be achieved, and financings which may or may not attain successful completion or commercial success, and should not be relied upon by any person to make an investment decision, and is for information only. CALCOL INC. (Delaware) common stock (par value $ .001) cusip #128699 trades OTC in the United States, involves a high degree of risk and is a suitable investment only for accredited (high net worthÂ?net worth of US$ 1 million or more) institutional, and overseas investors, who are able to assess the risk, and can afford to lose their entire investment. CALCOL INC. Â?CLCLÂ? (cusip#128699 common stock (par value $ .001) )is traded OTC in the United States and quoted on the Pink Sheets (http://www.pinksheets.com) An accredited, overseas or institutional investor considering an investment in a Pink Sheet quoted stock should consult the Â?RISK FACTORSÂ? section of the Pink Sheets website (http://www.pinksheets.com/risk.jsp) and should consult a registered investment advisor or licensed stockbroker for investment advice..

CONTACT ( United States): Norman C. Kaplan, President, CALCOL INC., P.O. Box 22103, Beachwood, OH 44122. Phone: 216-514-0849. China): Mr. Ji Jun, Vice President CALCOL INC., President, Sanhe Meile Soft Drinks Co. Ltd. Rm. 1001, Tower A Beijing Landmark Towers No.8 North Dong Sanhuan Rd., Chaoyang District Beijing 100004 China Phone: 011-86-10-6590-0386 Fax: 011-86-10-6590-6239. [email protected]. [email protected]. Http://www.calcol.com. (Israel) ZER HITECH LTD. Avi Zer Ph.D. 34 Ben Yehuda St. City Tower Jerusalem, Israel Phone011-972-2Â?6522462 Fax:011-972-2-6512898.Email: [email protected] .