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Critical Outcome Technologies successfully completes critical study

London, Ontario (October 20, 2011): Critical Outcome Technologies Inc. (COTI) (TSX Venture: COT) announced today the final results of recent pharmacodynamics and pharmacokinetics experiments demonstrating clear evidence of COTI-2's ability to significantly inhibit the growth of cancer cells that over express AKT/AKT2, confirming it as a promising targeted therapy candidate.

Detailed analysis of the new data confirmed that treatment with COTI-2 produced the expected changes in important proteins including GSK3β and caspase-9 that are known to be direct phosphorylation targets for AKT/AKT2. Importantly, COTI-2 produced increased levels of activated caspase-9 which promotes apoptosis (cell suicide) in susceptible cancer cells. Moreover, the available single dose pharmacokinetic (PK) data from this study indicated that once-daily oral therapy with COTI-2 may be optimal. The detailed results will be highlighted during a podium presentation at an upcoming high profile scientific conference.

“These final results and their implications represent a significant milestone in the development of COTI-2,” said Dr. Wayne Danter, COTI’s Chief Executive Officer. “They strengthen our prior research, provide new insights into a specific mechanism of action and support a first-in-class distinction for this promising anti-cancer drug candidate. We have also established that COTI-2 is both highly selective and well tolerated. These results, in combination with the recently announced U.S. patent, continue to strengthen our position as we move towards its out-licensing and a pivotal commercial validation of our CHEMSAS® platform.”

In summary, COTI-2 is an orally effective and selective allosteric modulator/inhibitor of AKT/AKT2 with a good PK profile and low toxicity. This new data in addition to previously generated results position it well for further development, including a phase 1 clinical trial.

This final data is from the first of three key studies related to the continued development of COTI-2 and is important to licensing partners as it provides specific insight into clinical development strategies for COTI-2. COTI will present this scientific data in detail at the upcoming scientific conference, Discovery on Target: Emerging Targets for the Kinase Inhibitor Pipeline held on November 2-4, 2011 in Boston, MA and will also be sharing it with prospective licensing partners at BIO Europe taking place in Dusseldorf, Germany, October 30- November 2, 2011.

COTI-2’s specific cellular targeting, low toxicity, and proven efficacy support a potentially dramatic change in the treatment of cancers that over express AKT/AKT2. Over expression of AKT/AKT2 is common in a broad range of human cancers, including ovarian, endometrial, pancreatic, breast, colorectal and lung. The percent of tumors producing excess active AKT/AKT2 ranges from 20% to 100% depending on the cancer type.