Vancouver, British  Columbia  -- January  15,  2003 Forbes  Medi-Tech  Inc. (TSE:FMI and NASDAQ:FMTI)  today  announced that shipments have begun under the  major  sterols supply  agreement  announced  in September  2002.  This agreement  is between Forbes' manufacturing joint venture, Phyto-Source LP, and a large multinational company. For competitive reasons, the identity of the  customer and contractual terms and conditions have not been disclosed. Based on  customer forecasts,  it is expected that  this  supply agreement, together with other supply  agreements already  secured by Forbes  and  the Joint  Venture,  will generate total revenues of up to $40 million over two years.

"The commencement of shipping and recognition of revenue from this contract represents  a  significant milestone for  the  Company," said Charles Butt, President and CEO of Forbes Medi-Tech Inc.

Manufacturing  of the phytosterols for all supply contracts is conducted by the Phyto-Source joint venture manufacturing facility in Pasadena, Texas, a 50-50 joint venture between Forbes and Chusei (USA) Inc. Forbes anticipates recognizing approximately  60%  of  the  total revenue  under these  supply
agreements  on  its   income   statement.  Approximately   800   tonnes  of
Phyto-Source's 1000  tonne annual production  capacity has been  secured by these contracts.

About Forbes Medi-Tech Inc.
Forbes  Medi-Tech  Inc. is  a biopharmaceutical  company dedicated  to  the research, development  and commercialization  of innovative pharmaceuticals
and   nutraceutical  products  for  the   prevention   and   treatment   of
cardiovascular  and related diseases. By extracting plant sterols from wood pulping by-products, Forbes has developed cholesterol-lowering agents to be used  as  pharmaceutical  therapeutics, dietary supplements and  functional food ingredients.

NASDAQ and the Toronto  Stock Exchange have not  reviewed and do not accept responsibility for the  adequacy or accuracy  of the content of  this  news release.  This  news  release  contains certain forward-looking  statements concerning anticipated  revenues,  sales,  manufacturing,  production,  and products, which statements can be identified  by the use of forward-looking
terminology,   such   as  "anticipates",  "up  to",  "to  be",  "expected",
"forecasts"  and  comparable  terminology  referring  to  future  events or results. The Company's actual results  could  differ materially from  those anticipated  in these forward-looking  statements  as a  result of numerous factors, including without  limitation, uncertainty  as to  whether product volumes will  be ordered as forecasted or at all; the need for  performance of  contract  obligations  by  buyers of  products;  uncertainty  that  the
Phyto-Source  LP  manufacturing  facility   will   function   as   planned;
uncertainty  as  to the  Company's  ability  to  generate  projected  sales volumes;  the  need  for  continued  cooperation  and  performance  by  the Company's  joint  venture  partner, Chusei (USA) Inc.;  the need to control costs  and  the  possibility  of  unanticipated  expenses  and delays;  and uncertainty  as to the successful conclusion of sales discussions currently underway, and of those  anticipated, with third-party purchasers;  and  the Company's  need  for  additional funding, which may not be available to the
Company on acceptable terms  or at all.   See the  Company's  reports filed
with  the  Toronto   Stock  Exchange,  the  B.C.  and   Ontario  Securities
Commissions, and the U.S.  Securities and Exchange Commission from time  to time for cautionary  statements  identifying  other important factors  with respect  to  such  forward-looking statements, including certain  risks and uncertainties,  that could cause  actual results to differ  materially from results referred  to in forward-looking statements. The Company assumes  no obligation to update the information contained in this press release.