VioQuest Reports First Quarter 2006 Financial Results and Highlights Quarterly Accomplishments


BASKING RIDGE, N.J., May 19, 2006 (PRIMEZONE) -- VioQuest Pharmaceuticals (OTCBB:VQPH) a biopharmaceutical company focused on developing and eventually commercializing targeted therapeutics, reported a net loss of $1.9 million, or $0.05 per share for the quarter ended March 31, 2006, compared to a net loss of $1.3 million, or $0.07 per share in 2005. The net loss increase was attributed to spending on its clinical development programs, enhancements to its senior management team, in addition to other operational expenditures. Revenues remained consistent from the first quarter 2005, while gross margins increased over 30% as a result of the Company achieving manufacturing efficiencies in the production of its proprietary technologies. The Company believes its Chiral Quest subsidiary will achieve cash flow positive results by the end of the year. During the first quarter of 2006 VioQuest Pharmaceuticals made significant progress on its business strategy and achieved several important milestones. The Company's quarterly accomplishments include:



 -- VioQuest appointed industry veteran, Pamela Harris, M.D. as 
    Chief Medical Officer.  Dr. Harris brings to the Company 
    extensive pharmaceutical industry knowledge and experience in 
    clinical development and the regulatory approval process, 
    particularly in the area of oncology. 

 -- VioQuest's Investigational New Drug application was accepted for 
    VQD-002, triciribine-phosphate (TCN-P) by the U.S. Food and Drug 
    Administration.  VQD-002 is a tricyclic nucleoside that targets 
    intracellular AKT, by inhibiting its phosphorylation and, 
    therefore, its ability to activate important cancer pathways. 

 -- The Company appointed two members to its Scientific Advisory 
    Board (SAB).  Kenneth F. King, Ph.D., and Webster K. Cavenee, 
    Ph.D., bring a combined total of over 50 years of drug 
    development expertise to VioQuest.

"Our drug development achievements and financial results were significant accomplishments during the first quarter," commented Daniel Greenleaf, President and CEO of VioQuest. "We achieved many important milestones on the road to accelerating our two targeted anti-cancer compounds further along through their development process."

About VioQuest Pharmaceuticals, Inc.

VioQuest Pharmaceuticals, Inc. acquires, develops and commercializes targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. A leader in personalized therapeutics, VioQuest has two targeted therapeutics in clinical trials: VQD-001, an inhibitor of specific protein tyrosine phosphatases, as well as an immune potentiator, has shown compelling preclinical activity in both renal and melanoma cancers, and VQD-002, which has been shown to inhibit the phosphorylation of Akt which is overexpressed in many ovarian, colorectal, breast, pancreatic cancers and in leukemia.

VioQuest's subsidiary Chiral Quest, a pioneer in asymmetric chemocatalysis and custom synthesis, offers its proprietary technology products and services to well-known pharmaceutical and fine chemical companies worldwide to improve their production efficiencies and, in some instances, to increase the overall safety and efficacy of the underlying drug. For more information please visit www.vioquestpharm.com.

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest's actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of VioQuest's research programs and compounds will be successfully commercialized. Other risks and uncertainties that affect forward-looking statements contained in this press release include the possibility that the market for the sale of certain products may not develop as expected; that development of our product candidates may not proceed as planned, the possibility of being unable to obtain regulatory approval of VioQuest's product candidates, the risk that the results of clinical trials may not support VioQuest's claims, and risks related to VioQuest's ability to protect its intellectual property and its reliance on third parties to develop its product candidates. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2005. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.



                VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                 (UNAUDITED)

                                       For the Three   For the Three
                                        Months Ended    Months Ended
                                       March 31, 2006  March 31, 2005
                                        ------------    ------------

            REVENUE                     $    598,876    $    597,768

 COST OF GOODS SOLD (Excluding
 Depreciation and Amortization)              318,149         396,760
                                        ------------    ------------

         GROSS PROFIT                        280,727         201,008
                                        ------------    ------------

       OPERATING EXPENSES
   Management and consulting fees             52,088         117,348
      Research and development               595,037         524,013
 Selling, general and administrative       1,464,333         810,892
    Depreciation and amortization             78,184          53,664
                                        ------------    ------------
      Total Operating Expenses             2,189,642       1,505,917
                                        ------------    ------------
 
       LOSS FROM OPERATIONS               (1,908,915)      1,304,909)

       INTEREST INCOME, NET                   47,168           6,486
                                        ------------    ------------

             NET LOSS                   $ (1,861,747)   $  1,298,423)
                                        ============    ============

   NET LOSS PER COMMON SHARE --
        BASIC AND DILUTED               $       (.05)   $       (.07)
                                        ============    ============
 WEIGHTED AVERAGE SHARES OUTSTANDING --
        BASIC AND DILUTED                 38,165,124      17,827,924
                                        ============    ============


                   VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
               AS OF MARCH 31, 2006 (UNAUDITED) AND DECEMBER 31, 2005

                                         March 31,       
                                           2006         December 31,
                                        (Unaudited)         2005
                                        ------------    ------------
                           ASSETS
                           ------
 CURRENT ASSETS

  Cash and cash equivalents             $  3,281,205    $  6,021,399
  Accounts receivable                        553,879         227,695
  Inventory                                  652,886         625,158
  Other current assets                       120,606          49,184
                                        ------------    ------------
   Total Current Assets                    4,608,576       6,923,436

 PROPERTY AND EQUIPMENT, NET                 699,066         757,151
 SECURITY DEPOSITS                            69,976          69,819
 INTELLECTUAL PROPERTY RIGHTS, NET           623,215         628,897
 OTHER ASSETS                                 37,075              --
                                        ------------    ------------
 TOTAL ASSETS                           $  6,037,908    $  8,379,303
 ------------                           ============    ============
 LIABILITIES AND STOCKHOLDERS' EQUITY
 ------------------------------------
 CURRENT LIABILITIES

  Accounts payable                      $    698,823    $  1,135,681
  Accrued compensation                       157,020         480,000
  Accrued expenses                           108,420         119,990
  Note payable -- Paramount
   BioCapital                                264,623         264,623
  Deferred revenue                            51,000          40,000
                                        ------------    ------------
 TOTAL LIABILITIES                         1,279,886       2,040,294
 -----------------                      ------------    ------------

 COMMITMENTS AND CONTINGENCIES

 STOCKHOLDERS' EQUITY
  Preferred stock; $0.001 par value:
   10,000,000 shares authorized,
   0 shares issued and outstanding at
   March 31, 2006 and December 31,
   2005                                           --              --

  Common stock; $0.001 par value:
   100,000,000 shares authorized at
   March 31, 2006 and December 31,
   2005, 46,729,519 shares issued
   and outstanding at March 31, 2006
   and December 31, 2005                      46,729          46,729
   Additional paid-in capital             26,842,432      26,561,672
   Accumulated deficit                   (22,131,139)    (20,269,392)
                                        ------------    ------------
   Total Stockholders' Equity              4,758,022       6,339,009
                                        ------------    ------------
 TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY                                $  6,037,908    $  8,379,303
 ----------------------------------     ============    ============


            

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