PCT

ALDA Pharmaceuticals Corp. (TSX VENTURE:APH) - 

Letter to the Shareholders of ALDA Pharmaceuticals Corp.

Since the last letter to shareholders was released on June 2, 2008, progress has
been made on a number of fronts.


- The Company has over $2.2 Million cash on hand with another $4.5 Million
available from the exercise of outstanding warrants and options.


- Final approval has been received from Health Canada for 3 out of 5 new retail
and commercial products.


- All production materials have now been procured and manufacturing of the
approved retail and commercial products is scheduled for completion by the end
of October, barring any further unforeseen delays.


- All of the filings required for the registration of the company's securities
in the US have been completed and provided to the SEC for review.


- Management attended a pre-IND meeting with FDA officials on July 15, 2008, in
Silver Spring, MD and plans for moving forward with further testing have been
established.


- A CTA (Clinical Trial Application) to apply for human trials in Canada is in
progress.


- Further work on the European, Canadian and expanded US patents is in progress.

Here are the details.

Finances and share capital

During the last four months, no further financings were undertaken but more
shares and warrants were exercised resulting in 49,891,799 shares issued and
outstanding. As of today's date, there are 6,697,500 warrants and 4,420,000
options outstanding which represent up to $4.5 million in cash. When these
warrants and options are exercised, the fully diluted capital of the Company
will be just over 61 Million shares. As of today's date, cash on hand is over
$2.2 Million. The goal of management is to conserve this cash and still be able
to invest in developing the asset base of the Company. Assisted by the
introduction of the new products, the Company can afford to wait for a better
financial climate and still continue with the development of its technology and
new markets.


Retail and Commercial Products

The following progress has been made with the new retail and commercial products.

- T36(R) Antiseptic Hand Sanitizer (Gel) - received DIN 02314320 on July 22,
2008 and is ready for manufacturing and distribution to retail markets. This is
the first product that the Company has had approved for human use.


- T36(R) Antiseptic Hand Sanitizer Spray - ready to be manufactured pending
Health Canada approval of the label and issuance of a new DIN.


- T36(R) Disinfex Disinfectant Spray - ready to be manufactured pending Health
Canada approval of the label and issuance of a new DIN. This is the original
T36(R) formulation that will be marketed as a personal disinfectant.


- T36(R) Disinfex Disinfectant Cleaner (DIN 02314134) - received approval for
the current name on July 18, 2008 and will be prepared as disinfectant wipes for
distribution to retail and commercial markets.


- T36(R) Disinfectant Cleaner Concentrate (DIN 02278820) - ready to be
manufactured for distribution to commercial markets. Dr. William McCoy, the
Company's Director in the US, is continuing to work towards registering this
product with the EPA in the US.


Manufacturing of the approved products is scheduled for completion by the end of
October barring any unexpected delays.


Manufacturing and marketing in China

On May 29, 2008, it was announced that He-Yi She Ye Limited ("He-Yi"), ALDA's
agent in China had completed pilot production of ALDA's T36(R) Disinfectant and
had secured sales contracts for nearly CDN $2 million. A quarterly reporting
requirement is being established for He-Yi and the first report for September
30, 2008 will be released as soon as possible.


Therapeutic Products

United States

T36(R) was extensively tested at Bioscience Laboratories Inc., located in
Bozeman, MT, against bacteria, fungi and viruses. All of the infectious
micro-organisms were killed well within the time limits required by the FDA. In
separate tests, not related to the FDA, T36(R) killed two of the fungi
responsible for athlete's foot within 15 seconds. These results, along with the
efficacy and toxicology studies previously conducted by ALDA, were submitted to
the FDA in advance of a pre-IND ("Investigational New Drug") meeting held with
the FDA in Silver Spring, MD on July 15, 2008. At this meeting, the Company was
given approval to proceed to the next round of testing for use of T36(R) as a
single dose, pre-surgical and pre-injection skin antiseptic. This is considered
to be an important market for ALDA, particularly since it was recently announced
that Cardinal Health agreed to purchase Enturia Inc., the maker of ChloraPrep(R)
products that are used widely in U.S. hospitals and surgery centers to disinfect
the skin before procedures, for $490 million.


The following testing has now been arranged.

- Time kill studies will be conducted at Bioscience Laboratories Inc. In these
tests, dozens of infectious micro-organisms will be exposed to each of the
active ingredients of T36(R) and the complete T36(R) formula for periods of time
ranging from 15 seconds to 30 minutes to determine the time required for each
ingredient of T36(R) and the complete T36(R) formulation to completely kill the
selected species.


- MIC ("Minimal Inhibitory Concentration") studies will be conducted at Clinical
Microbiology Institute, located in Wilsonville, OR. MIC studies test each
ingredient of T36(R), the complete T36(R) formula and a known antiseptic product
against hundreds of micro-organisms. The objective of the tests is to determine
the minimum concentration that is required for each of the test substances to
have a measurable effect on the tested species and to compare those results to
the known antiseptic product.


- AD ("Adsorption and Disposition") studies will be conducted at Celsis In Vitro
Inc., located in Baltimore, MD. In these tests, the penetration of each
ingredient of T36(R) and the complete T36(R) formulation into and through skin
will be tested. The objective is to determine if the T36(R) formulation enhances
penetration of the skin by any of the ingredients of the formula. From this
study, the risk, if any, to humans can be determined.


The MIC and AD protocols have been prepared and will be submitted to the FDA for
approval or amendments. Draft kill time protocols are now being reviewed. As the
protocols are approved by the FDA, the studies will begin. The budget for these
studies is approximately $635,000 over 6 months after commencement. Upon
successful completion of these three studies and with the approval of the FDA,
human trials can be conducted that will satisfy the requirements for the
registration of the T36(R) surgical antiseptic in Canada, the EU and the US. For
other applications of the T36(R) formulation, such as treatments for topical
infections, animal studies will be required to determine the safety over the
more prolonged exposure times. Since toxicology studies have already
demonstrated the safety of the formulation, new studies conducted according to
the protocols required by the FDA are expected to be successful. Investigation
of the budget requirements for these studies will commence once the tests now
being arranged are underway.


Canada and the EU

To assist with regulatory matters in Canada and the EU, the services of PharmEng
Technology Inc. ("PharmEng") have been engaged. PharmEng is a full-service
consulting and contract manufacturing company that serves the pharmaceutical,
biotechnology and medical device industries in North America and
internationally. Under the direction of PharmEng, the results received from
Bioscience Laboratories have been incorporated into a CTA (Clinical Trial
Application) in preparation for a pre-CTA meeting with Health Canada. This
application is very similar to the pre-IND application prepared for the FDA. The
difference is that the Company will be applying to Health Canada for permission
to conduct human trials without the further studies required by the FDA. If
permission is granted, the trials will be designed to satisfy the requirements
of the FDA, Health Canada and the European Medicines Agency. The Company is
planning on arranging the pre-CTA meeting with Health Canada before the year
end, if possible. The timing of that meeting will be dependent on the
availability of the Health Canada officials.


Patents

Progress has been made on the protection of the Company's intellectual property
as described below.


US - As reported earlier, a major extension to the original US patent 7,338,927
has been filed to cover certain therapeutic uses. The first Office Action has
been received from the US Patent and Trademark Office and is being reviewed by
the Company and its patent lawyers to determine the most appropriate response.


Europe - The experimental data that was required for the European Patent Office
has now been largely completed and needs to be incorporated into the response to
the Office Action.


Canada - An Office Action regarding the patent application was received from the
Canadian Intellectual Property Office ("CIPO") and is being reviewed by the
Company and its patent lawyers to determine the most appropriate response.


Anti-infective, anti-inflammatory PCT application - The new patent application
filed with CIPO under the Patent Cooperation Treaty ("PCT") in March has been
assigned International Application No. PCT/CA2008/000536. It is projected by the
Company's lawyers that the patent application will be reviewed by CIPO and that
the national phase of the application process may begin in November, 2009. In
the national phase, the PCT application can be submitted to the intellectual
property office of each separate country and to the EPO for "national review"
and examined again. Each patent office acts independently and can request its
own actions during the process. A patent in any country is material because each
country acts totally independently. A patent in any one country does not
automatically lead to a patent in any other countries except that the EU reviews
and issues patents on behalf of its member countries.


Foreign securities registration

In March, 2006, a Form 20-F for the fiscal year ended June 30, 2005 was filed on
EDGAR, the electronic filing system used for publicly-traded companies in the US
(www.edgar.com). In April, 2006, a 14-page response with 86 comments and
questions was received from the SEC. In December, 2007, the Company appointed
new lawyers, Stanislaw & Ashbaugh, LLP ("Stanislaw") located in Seattle, WA, to
assist with the subsequent filings. The SEC advised Stanislaw that the Company
did not have to respond directly to the letter of April, 2006 but was required
to incorporate responses to the questions and comments raised in the letter into
the Form 20-F for 2006 and 2007. This task was completed and the Form 20-F for
the two years and all of the outstanding 6-K quarterly reports were filed on
EDGAR. The Company then provided all of the information to Pennaluna & Co. in
Coeur d'Alene ID, the selected market maker, which, in turn submitted the
information to FINRA ("the Financial Industry Regulatory Authority") the
non-governmental regulator for all securities firms in the United States. On
conducting their due diligence, FINRA was advised that the SEC had "outstanding
comments". When contacted by Stanislaw, the Company was advised that the SEC had
decided that the letter received in April, 2006 did require a response, after
all. A letter pointing out where all of the questions and comments had been
addressed in the 2007 Form 20-F was then prepared by the Company and sent to the
SEC on September 25, 2008. The Company has been advised by Stanislaw that the
information will be reviewed by the SEC within 30 days and that further
questions may be raised. If so, the Company will respond as quickly as possible.


Summary

The stock market has been very unkind to a lot of people over the past few
months. These are difficult times in the economy but ALDA is in a good position
to capitalize on its cash position, imminent sales of new products, the start of
production and sales in China, the continuing effort to achieve US registration
of its shares, continued testing of T36(R) for therapeutic applications and a
good group of advisors and directors who provide a lot of support to the
Company. In my 21 years in the market, I have seen market conditions like this
many times and ALDA is in a very good position to ride out this storm and emerge
as a stronger company.


Sincerely yours,

Terrance G. Owen, Ph.D., M.B.A., President & CEO

The content and information on this report is for informational purposes only
and is intended for use by persons resident in jurisdictions where such use is
permitted by law (including applicable securities laws). and is not, and under
no circumstances is to be construed as, a prospectus or a public offering or
advertisement of securities of ALDA. The statements contained in this report
that are not purely historical are forward-looking statements. "Forward looking
statements" include statements regarding our expectations, hopes, intentions or
strategies regarding the future. Forward looking statements include: statements
regarding future products or products or product development; statements
regarding future selling, general and administrative costs and research and
development spending; and our product development strategy; statements regarding
future capital expenditures and financing requirements; and similar forward
looking statements. It is important to note that such forward looking statements
involve known and unknown risks, uncertainties and other factors (including by
not limited to lack of additional financing; risks associated with clinical
trials and regulatory approvals; loss of, or challenges to, our intellectual
property; changes in management; competition; changes in markets in which we
operate) that may cause our actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. These statements and information are only predictions and actual
events or results may differ materially. Forward-looking statements are based on
our current expectations and ALDA does not assume any obligation to update such
information to reflect later events or developments, except as may be required
by law.

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