Cobalis Corp. Gains Superior Court Approval to Cancel 3,000,000 Share Certificate Held by IBCG as the Defaulting Party to Loan Agreement IRVINE, Calif., July 20 /PRNewswire-FirstCall/ -- Cobalis Corp. (OTC:CBSC) (BULLETIN BOARD: CBSC) , a pharmaceutical company specializing in over-the-counter anti-allergy medications, announced today that on July 1, 2004, the Los Angeles Superior Court ruled in the Company's favor and entered a judgment against IBCG International Business Consultant GmbH (IBCG). The Company initiated the lawsuit to rescind a collateralized loan agreement between IBCG and the Company, based on the failure of IBCG to perform its obligations under that agreement. Further, the Court order instructs Pacific Stock Transfer Company, Cobalis' stock transfer agent, to rescind BioGentech Share Certificate #1028 for 3,000,000 shares of the common stock of the Company, under CUSIP number 09063N104, which was issued as collateral for a loan which was never received by the Company. Cobalis' announcement today confirms that the certificate, originally issued for shares of BioGentech Corporation (the former name of Cobalis Corp.), has been rescinded by Pacific Stock Transfer Company, and may no longer be used for any purposes. On July 9, 2004, the transfer agent reduced the number of outstanding shares issued and outstanding of Cobalis Corp. from 24,481,472 to 21,481,472. Cobalis CEO Chas Radovich said: "We are very pleased that the Los Angeles Superior Court has granted our request for recision of the loan agreement, and for cancellation of the share certificate. We have tried for almost one year to resolve this issue with IBCG, who unilaterally defaulted on their commitment to our Company, and who subsequently refused to cooperate to return the share certificate issued in good faith by us." Adds Radovich: "We have suspected for a long time that this certificate was used in illegal naked short selling operations on the Berlin-Bremen and other international stock exchanges, and I wish to make it very clear to the international securities marketplace that any further use of Certificate #1028 for any trading, shorting or collateral purposes will be considered fraudulent and will be pursued aggressively by the Company to the fullest extent of international and securities law." Cobalis Corp. will be sending registered letters to the compliance officers at all brokerage and securities investment firms, as well as to all securities exchanges, affirming the cancellation of this certificate and to halt any ongoing short-selling operations based on this certificate. IBCG International Business Consultant GmbH has refused to identify the location of the certificate and has refused to return the certificate to the Company. IBCG failed to appear at Superior Court to contest the suit and the Court granted the default judgment against IBCG effectively rendering the certificate null and void on July 1, 2004. About Cobalis Corp. -- PreHistin (TM) Headquartered in Irvine, California, Cobalis Corp. is an over-the-counter pharmaceutical company. Its flagship product, PreHistin, designed to prevent the primary cause of airborne allergies, is scheduled for Phase III clinical trials in late 2004 and initial marketing in the U.S. will commence upon final FDA marketing approval. The U.S. anti-allergy medication market was $7.2 billion in 2003 and is expected to exceed $10 billion by 2010. PreHistin, "The World's First Pre-histamine (TM)," has shown in previous clinical studies to modulate the body's level of the protein IgE, reducing the overproduction of histamines, the primary cause of airborne allergy symptoms. Prior studies have shown that the active ingredient in PreHistin appears to have essentially no risks of adverse effects to the general population, including sedation and drowsiness found in many of the allergy products currently available. For further information please visit the website at http://www.cobalis.com/. Safe Harbor Certain statements contained in this news release are considered "forward- looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because these statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward- looking statements. These forward-looking statements reflect Cobalis Corp's current views about future events. They are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate," "possibility" and similar expressions identifying their forward-looking character. Investors should not rely on these forward-looking statements as assurances of future events, because such statements are inherently subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from the Company's expectations. Specifically, factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to: risks associated with preclinical and clinical developments in the biopharmaceutical industry in general and in Cobalis Corp's compounds under development in particular; the potential failure of Cobalis Corp's compounds under development to prove safe and effective for treatment of disease; uncertainties inherent in the early stage of Cobalis Corp's compounds under development, failure to successfully implement or complete clinical trials; failure to receive marketing clearance from regulatory agencies for our compounds under development; acquisitions, divestitures, mergers, licenses or strategic initiatives that change Cobalis Corp's business, structure or projections; the development of competing products; uncertainties related to Cobalis Corp's business, structure or projections; the development of competing products; uncertainties related to Cobalis Corp's dependence on third parties and partners; and those risks described in the filings with the SEC, all of which are under the Company's prior name BioGentech Corporation. Cobalis Corp. disclaims any obligation to update these forward-looking statements. DATASOURCE: Cobalis Corp. CONTACT: Chaslav Radovich, President & CEO of Cobalis Corp., +1-949-757-0001, or 1-888-600-2424, Web site: http://www.cobalis.com/

Copyright