VioQuest Pharmaceuticals Completes Final Closing of Previously Announced Private...

VioQuest Pharmaceuticals Completes Final Closing of Previously Announced Private Placement

BASKING RIDGE, N.J.--(Business Wire)--
VioQuest Pharmaceuticals (OTCBB: VQPH) announced today that it has
completed its previously announced private placement raising an
aggregate of approximately $3 million through the sale of units
consisting of shares of its Series A Convertible Preferred Stock and
warrants to purchase shares of its Common Stock, pursuant to a series
of subscription agreements with selected accredited investors.

At the second closing, the Company sold 2,195 shares of Series A
Convertible Preferred Stock for $1,000 per share, or gross proceeds of
approximately $2.2 million. At the initial closing of the private
placement on March 14, 2008, the Company sold 765 shares of Series A
Convertible Preferred Stock, realizing gross proceeds of approximately
$0.7 million.

Each share of Series A Convertible Preferred Stock is convertible
into shares of the Company's Common Stock at $0.06 per share, or 49.3
million shares of common stock in the aggregate. The purchasers also
received a five-year warrant to purchase an aggregate of approximately
24.7 million shares of Common Stock at an exercise price of $0.10 per
share. The Series A Convertible Preferred Stock is entitled to an
annual dividend equal to 6% of the applicable issuance price per
annum, payable semi-annually.

As a condition to the initial closing of the private placement on
March 14, 2008, the majority of the holders of the Company's
outstanding senior convertible promissory notes in the aggregate
principal amount of $3.7 million, which were issued in June and July
2007, agreed to convert such notes, together with accrued interest,
into approximately 3,900 shares of the Company's newly-designated
Series B Convertible Preferred Stock. The Series B Convertible
Preferred Stock contain substantially the same economic terms as the
previously outstanding senior convertible notes and are ranked pari
passu with the Series A Convertible Preferred Stock.

VioQuest intends to use the proceeds of the private placement for
general corporate purposes, including working capital.

The securities sold and issued in connection with the private
placement have not been registered under the Securities Act of 1933,
as amended, or any state securities laws and may not be offered or
sold in the United States absent registration with the Securities and
Exchange Commission or an applicable exemption from the registration
requirements. As part of the transaction, VioQuest has agreed to file
a registration statement with the Securities and Exchange Commission
for purposes of registering the resale of all of the Common Stock
underlying the Series A Convertible Preferred Stock and warrants
issued in the private placement.

About VioQuest Pharmaceuticals

VioQuest Pharmaceuticals is a New Jersey-based biotechnology
company dedicated to becoming a recognized leader in the successful
development of novel drug therapies targeting both the molecular basis
of cancer and side effects of treatment. VioQuest's oncology portfolio
includes: Xyfid(TM) (1% uracil topical), for the treatment and
prevention of Hand-Foot Syndrome, a common side effect from certain
chemotherapy treatments, and to treat dry skin conditions and manage
the burning and itching associated with various dermatoses; VQD-002
(triciribine phosphate monohydrate), a targeted inhibitor of Akt
activation; and Lenocta(TM) (sodium stibogluconate), an inhibitor of
certain protein tyrosine phosphatases such as SHP-1, SHP-2, and PTP1B.

Further information about VioQuest can be found at
www.vioquestpharm.com.

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 forward-looking statements concern the timing,
progress and results of the clinical development, regulatory
processes, potential clinical trial initiations of VioQuest's product
candidates, as well as the potential role these product candidates may
play in the treatment of cancers. These statements are often, but not
always, made through the use of words or phrases such as anticipates,
expects, plans, believes, intends, and similar words or phrases. 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. These statements are subject to various risks and
uncertainties and include VioQuest's need for additional capital to
fund its clinical development programs, the possibility that the
results of clinical trials will not support VioQuest's claims, the
possibility that VioQuest's development efforts relating to its
product candidates will not be successful, the inability to obtain
regulatory approval of VioQuest's product candidates, VioQuest's
reliance on third-party researchers to develop its product candidates,
its lack of experience in developing and commercializing
pharmaceutical products, and the possibility that its licenses to
develop and commercialize its product candidates may be terminated.
Additional risks are described in VioQuest's Annual Report on Form
10-KSB for the year ended December 31, 2007. VioQuest assumes no
obligation and does not intend to update these forward-looking
statements, except as required by law.

Investors:
VioQuest Pharmaceuticals
Brian Lenz, 908-766-4400 ext. 117
Chief Financial Officer
brian.lenz@vioquestpharm.com

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