AUGUST 28, 2005 - 09:00 ET

FOR IMMEDIATE RELEASE

PHARMENG CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

August 24, 2005 - Toronto, Ontario (TSXV:PII) - PharmEng International Inc. today announced that it issued and sold 1,050,553 units at a price of $0.45 per unit to arms-length subscribers for aggregate gross proceeds of $472,749.45. This placement represents the final of two tranches of a $1 million private placement previously announced in a press release of PharmEng dated April 20, 2005 as well as in Chrysalis Capital Corporation's recently filed filing statement, dated April 8, 2005. The closing of the first tranche, for aggregate gross proceeds of $536,649.40 was announced on August 4, 2005. Each unit consists of one common share and one common share purchase warrant exercisable at a price of $0.60 for a period of 18 months from the closing date.

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training. Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquid products. Building on a foundation of over seven years of successful consulting, PharmEng through its wholly owned manufacturing subsidiary, Keata, has evolved into one of Canada's leading pharmaceutical companies. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. For more information about PharmEng, please visit the Company's website at www.pharmeng.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the information disclosed herein and has neither approved nor disapproved the contents of this press release.