LETTER TO THE SHAREHOLDERS OF ALDA PHARMACEUTICALS CORP.

It has been a very eventful year for ALDA Pharmaceuticals Corp. As described below, during 2007, the
Company arranged three financings, received allowances for its patent in three jurisdictions, started the
process of introducing its products to consumers, secured marketing and manufacturing rights in China,
started testing the T36® formulation for therapeutic markets and observed the share price increase by nearly
10-fold. In the remaining six weeks of the year, we may see patents issued in China, the US and Australia,
approval from Health Canada for a new antiseptic hand cleanser and progress on the registration of ALDA’s
securities in the US. Here are the highlights of our year.
Financings in 2007
In April this year, ALDA arranged a $500,000 private placement which became over subscribed and
closed in June with a total of $800,000 being raised. While the private placement was in progress,
ALDA shares saw unprecedented trading and over 8 million shares traded in a single day. Since then,
the Company has seen much improved liquidity with an average of over 450,000 shares trading daily
over the last 100 days.
In July, a $240,000 private placement was arranged. This private placement also quickly became
oversubscribed and the Company had to turn away a number of people who had wanted to participate.
This situation was repeated with a private placement for $525,000 arranged in October. The
documentation for this financing has now been filed with the TSX Venture Exchange for approval. Once
this placement is closed the company will have over $1.5 million in cash. The amount of cash on hand
was augmented by a number warrants and options being exercised this year. The company is now in a
position to pursue a number of initiatives that are described below.
Retail Products
Cowie and Fox, working with Group 270, have now created a new identity and logo for the retail
products and have started on the marketing program that will be used to introduce the products to
consumers. A trademark application has been filed in Canada for the new name and the Company has
six months after the date of that application to file for international trademarks. Details on the new name
and marketing materials will be disclosed at the time the products are launched.
The new identity will also apply to the new antiseptic hand cleanser that is in the process of being
registered with Health Canada as announced by the company on October 30, 2007. This product is
expected to have an advantage in the market because an antiseptic is more powerful than a sanitizer and
kills a wider variety of infectious organisms. Packaged with T36® Disinfectant, the new antiseptic handcleanser will offer a unique combination of infection control products to the consumer that will be
effective, versatile and safe.
A third product, the "Ready to Use" Disinfectant Cleaner that was announced by the company on
November 1, 2005, may be incorporated into a wipe for the retail market under the new identity as well.
Work on patenting of this technology is in progress so that the product can be now be made and
marketed.
Manufacturing and marketing in China
Progress is being made in establishing manufacturing in China but no firm start date has been
established yet. The Company has been advised that there is strong interest in the T36® Disinfectant that
will be marketed under a unique identity for the Chinese market. As announced by the Company on May
29, 2007, T36® Personal Disinfectant has been registered for use as a hand sanitizer and first-aid
ointment in addition to its current use as surface disinfectant. This expanded registration for use on
humans in China occurred far in advance to ALDA’s expectations and came at an opportune time
considering that the 2008 Olympics are being hosted in Beijing.