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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Joe Krupa who wrote (13466)	5/20/2004 8:37:38 PM
From: Michel Thibodeau	Read Replies (1) \| Respond to of 14101

NEWS Dimethaid board rejects dissident shareholder demands TORONTO, May 20 /CNW/ - The board of directors for Dimethaid Research Inc., (TSX: DMX) has rejected demands from a shareholder group attempting to seize control of the company. In a letter dated May 7, the group, which claimed to hold more than 5 percent of issued shares, called for the resignation of all board members, including the company's chief executive officer, and the appointment of its own candidates. To respond, Dimethaid's board created a special committee, excluding the CEO and board member Frederick Keeler. During a subsequent meeting between representatives of the special committee and proposed directors, the shareholder group revised its demands, asking that the new board comprise a majority of the group's candidates and that one of the dissidents, Daniel H. Chicoine, be appointed CEO. After considering the demands in a series of meetings between May 9 and May 16, the special committee gave the dissident group until May 19 to offer evidence that it could raise sufficient capital for the company. As of the deadline, the group was unable to demonstrate such ability. On May 20, board member Daniel Sooley resigned. A letter, dated January 7, 2004, identified three areas of dissatisfaction. In December 2003, a U.K. arbitrator ordered Dimethaid to pay $2.1 million US, plus costs and interest, after the company cancelled a contract with a British distributor whose product orders fell short of agreed minimums. The January letter also objected to the presence of Frederick Keeler on the board, as well as the difference between management estimates and the actual time Health Canada took to approve Pennsaid(R), the company's first commercial product. A representative of the dissident group has now signed a formal "requisition of meeting of shareholders", delivered late on May 19, 2004. The proposed slate of directors in this requisition consists of David Copeland, Anthony Dobranowski, Klaus von Lindeiner, Jeff Chisholm, Joe Heffernan, Jacques Messier and Daniel H. Chicoine. Dimethaid is legally required to announce a date for the meeting within 21 days. To avoid unnecessary expense, the company will attempt to accelerate auditing procedures and move up its Annual General Meeting, originally anticipated for late October. Despite the special meeting requisition, the company believes it can obtain sufficient financing to meet its immediate needs. About Dimethaid Dimethaid Research Inc. is a publicly traded, Canadian, pharmaceutical company headquartered in Markham, Ontario, with manufacturing facilities in Varennes, Québec and Wanzleben, Germany. The company develops and commercializes targeted therapeutic drugs designed to produce minimal side effects. Dimethaid's two technology platforms focus on immune system regulation and transcellular drug delivery. Products are aimed at expanding treatment options in oncology, immunology, rheumatology and the therapeutic management of chronic viral infections. For more information, please visit www.dimethaid.com. This release may contain forward-looking statements, subject to risks and uncertainties beyond management's control. Actual results could differ materially from those expressed here. Risk factors are discussed in the Company's annual information form filed with the securities commissions in each of the provinces of Canada. The Company undertakes no obligation to revise forward-looking statements in light of future events.