Alfacell Corp.

Kuslima Shogen, chief executive officer and scientific founder of Alfacell Corp., will retire from the company on or before March 31, 2009. The company also announced that the royalty agreement between Ms. Shogen and Alfacell has been terminated.
    
The termination of the royalty agreement could reduce payments to Ms. Shogen by an estimated $20 million during the next 10 years, if the company’s lead compound Onconase, is granted marketing approval by the FDA.
   
Under the terms of the retirement agreement, Ms. Shogen will continue to receive her current salary for two years after she steps down. In exchange for the termination of the royalty agreement, Ms. Shogen will receive a cash bonus, an additional cash bonus upon FDA approval of Onconase for the treatment of malignant mesothelioma, a stock option grant based the approval of Onconase, cash payments for the first two years following approval, and cash payments from Alfacell if sales of Onconase exceed $100 million.
   
“Tina’s contributions to Alfacell and the science behind Onconase have been immeasurable,” said David Sidransky, M.D., Alfacell’s chairman. “Her dedication and commitment are unmatched and I know that I speak for everyone at Alfacell in offering congratulations as she moves on to a well-earned retirement.”
   
Also, the company has named Lawrence A. Kenyon president. Mr. Kenyon joined Alfacell in January 2007 as executive vice president, chief financial officer and corporate secretary. He was promoted to chief operating officer and elected to the board of directors in November 2007.  
   
“It is a comfort for me to entrust the further development and potential commercialization of our exciting pipeline to Mr. Kenyon,” said Ms. Shogen. “It has been a privilege to be part of Alfacell where I have experienced the rare opportunity to make an important scientific contribution and achieve the realization of my life’s work.”
   
“Our focus has begun to shift towards the necessary steps to grow Alfacell and maximize value for our shareholders,” added Mr. Kenyon. “The termination of the royalty agreement will allow us to enhance our ability to increase investment in our promising technology platform. We are excited about the future of Alfacell, and I would like to congratulate Tina and commend her for the sound scientific foundation she has built for us.”