ADHEREX
REPORTS RECENT DEVELOPMENTS AND THIRD QUARTER 2010


FINANCIAL
RESULTS





Chapel Hill, NC, November 15,
2010 — Adherex Technologies Inc. (TSX:AHX, Pink Sheets: ADHXF), a
biopharmaceutical company focused on the development of eniluracil and
5-fluorouracil, today reported recent developments and financial results for the
third quarter ended September 30, 2010.  All amounts are in U.S.
dollars unless otherwise specified.





Recent Developments &
Highlights





Since the
announcement of the new corporate direction of the Company in July 2009, Adherex
has achieved the following significant milestones





·
            Finalization ofEniluracilPhase2Clinical Protocol and Regulatory Submissions in the
      United States and Russia- Under the direction of Dr. Thomas
      Spector, the principal inventor of eniluracil, Adherex has finalized the
      protocol for the  140 patient Phase 2 clinical trial in
      metastatic breast cancer (MBC).  The trial will compare
      eniluracil in combination with 5-FU and leucovorin to
      Xeloda®.  During the third quarter, Adherex submitted the
      protocol to the U.S. Food and Drug Administration and to the Ministry of
      Healthcare and Social Development in Russia.  Adherex
      anticipates the trial to be  open for recruitment in early
      2011.




·
            Selection of CRO -Adherex has contracted with OCT Group LLC, to manage the clinical
      trial in Russia.


·
              CDN$7.2 million financing -In April 2010, the Company announced the first closing of the
      private placement of rights to acquire common stock and warrants,
      resulting in gross proceeds to the Company of approximately of CDN$7.2
      million. The Company intends to use the proceeds of the private
      placement to conduct and monitor the Phase II clinical trial of eniluracil
      in combination with 5-FU and leucovorin, and for other general corporate
      purposes.


·
              Filing ofRegistration Statement for
      Rights Offering - On November 12, 2010, Adherex filed a
      registration statement with the Securities and Exchange Commission (the
      "SEC") in connection with a  proposed rights offering to
      existing shareholders.  As announced in April 2010, the Company
      intends to offer existing shareholders the opportunity to subscribe for up
      to 425,000,000 rights at CAD$0.03 per unit, with gross process of up to
      CAD$12.75 million upon the issuance of all of the common stock underlying
      such rights (and additional gross proceeds of up to CAD$34.0 million upon
      the exercise of all of the warrants underlying such rights at an exercise
      price of CAD$0.08 per warrant). The Company intends to use the proceeds of
      the rights offering to further develop eniluracil (including to conduct
      and monitor the Phase II clinical trial of eniluracil in combination with
      5-FU and leucovorin), and for other general corporate purposes. A
      registration statement relating to these securities has been filed with
      the SEC but has not yet been declared effective.  Accordingly,
      the rights (and underlying common stock and warrants) may not be sold nor
      may offers be accepted prior to the time the registration statement
      becomes effective. The rights will be issued to all shareholders as
      of a record date which has yet to be determined. We will provide
      notice of the record date at such time as it is determined. This press
      release shall not constitute an offer to sell or the solicitation of an
      offer to buy nor shall there be any sale of these securities in any state
      in which such offer, solicitation or sale would be unlawful prior to the
      registration or qualification under the securities laws of any such
      state.


“Adherex has made
significant progress over the past year, especially during the past quarter. Our
team remains dedicated to developing  eniluracil and we look forward
to  enrolling the  Phase 2 trial so that patients with
metastatic breast cancer may receive the potential benefits of
eniluracil/5-FU/leucovorin therapy." said Mr. Rosty Raykov,
Chief Executive Officer of Adherex.
  Adherex’sNewly Redesigned
Website–
www.adherex.com





The
Company extends an invitation to all investors and interested parties to visit
the newly redesigned website at www.adherex.com,
which includes a video presentation by Dr. Thomas Spector on the history,
science and future development of eniluracil.





Financial Results for Third
Quarter 2010





The
Company reported net income for the three month period ended September 30, 2010
of $1.7 million, or a gain of $0.01 per share, compared to a net loss of $0.03
million, or a loss of $0.01 per share, for the same period in
2009.  Reported operating loss for the three-month period ended
September 30, 2010 totaled $0.9 million, as compared to a reported operating
loss of $0.07 million for the same period in 2009.  The increase in
reported operating loss is primarily due to an overall increase in stock based
compensation as well as an increase in clinical development study expenses for
the three months ended September 30, 2010 as compared to the same period in
2009.   We recorded $0.4 million in stock based compensation for
the three months ended September 30, 2010 as compared to $0.01 million in the
same period in 2009. For the three-month period ended September 30, 2010, the
Company reported an unrealized gain on derivative of $2.6 million.




The
reported net loss for the nine-month period ended September 30, 2010 was $1.2
million, or a loss of $0.01 per share, compared to a reported net loss of $3.2
million, or a loss of $0.02 per share, for the same period in
2009.  Reported operating expenses for the nine-month period ended
September 30, 2010 totaled $3.8 million, as compared to $3.3 million for the
same period in 2009.  The increase in reported operating loss is
primarily due to an overall increase in stock based compensation which was
offset by a decline in research and development and general and administrative
expenses for the comparable periods. We recorded $2.4 million in stock based
compensation for the nine months ended September 30, 2010 as compared to $0.5
million in the same period in 2009. For the nine-month period ended September
30, 2010, the Company reported an unrealized gain on derivative of $2.5
million.




Cash and
cash equivalents totaled $6.6 million at September 30, 2010, compared to $7.2
million at June 30, 2010.  At September 30, 2010, the Company had
working capital assets totaling approximately $6.3 million, compared to $6.8
million at June 30, 2010.  The decrease in working capital of $0.5
million over the three-month period ended September 30, 2010 is principally the
result of expenditures used to fund the development of eniluracil.








The
selected financial data presented below are derived from our unaudited interim
consolidated financial statements, which were prepared in accordance with U.S.
generally accepted accounting principles.  The complete consolidated
financial statements for the quarter ended September 30, 2010 and management's
discussion and analysis of financial condition and results of operations will be
available via our website at www.adherex.com and
also at www.sec.gov and www.sedar.com.gov.





FINANCIAL
CHARTS FOLLOW





Adherex
Technologies Inc.


Unaudited
Selected Financial Data


(U.S.
dollars in thousands except per share amounts)





Interim Consolidated Balance Sheets:
                        
                        September 30,
                            2010
                        
                        
                        December 31,
                            2009Assets:Cash
      and cash equivalents
                        
                        $
                        6,602
                        
                        
                        $
                        685Other
      current assets
                        
                        
                        1
                        
                        
                        
                        148Total
      assets
                        
                        $
                        6,603
                        
                        
                        $
                        833Liabilities
      and stockholders’ equity:Current
      liabilities
                        
                        $
                        306
                        
                        
                        $
                        420Other
      long-term liabilities
                        
                        
                        4,692
                        
                        
                        
                        7Total
      stockholders’ equity
                        
                        
                        1,605
                        
                        
                        
                        406Total
      liabilities and stockholders’ equity
                        
                        $
                        6,603
                        
                        
                        $
                        833





Interim Consolidated Statements of
      Operations:
                    
                    Three Months Ended
                    
                    
                    Nine Months EndedSeptember 30,
                        2010
                    
                    
                    September 30,
                        2009
                    
                    
                    September 30,
                        2010
                    
                    
                    September 30,
                        2009Revenue
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -Operating
      expenses:Research
      and development
                    
                    
                    110
                    
                    
                    
                    650
                    
                    
                    
                    419
                    
                    
                    
                    1,976(Gain)
      on deferred lease inducement
                    
                    
                    -
                    
                    
                    
                    (323
                    )
                    
                    
                    -
                    
                    
                    
                    (323
                    )Loss
      on impairment of asset held for sale
                    
                    
                    -
                    
                    
                    
                    57
                    
                    
                    
                    -
                    
                    
                    
                    386General
      and administrative
                    
                    
                    807
                    
                    
                    
                    293
                    
                    
                    
                    3,369
                    
                    
                    
                    1,276(Loss)
      from operations
                    
                    
                    (917
                    )
                    
                    
                    (74
                    )
                    
                    
                    (3,788
                    )
                    
                    
                    (3,315
                    )Unrealized
      gain on derivative
                    
                    
                    2,570
                    
                    
                    
                    -
                    
                    
                    
                    2,498
                    
                    
                    
                    -Other
      income (expense)
                    
                    
                    28
                    
                    
                    
                    39
                    
                    
                    
                    29
                    
                    
                    
                    50Interest
      income
                    
                    
                    13
                    
                    
                    
                    -
                    
                    
                    
                    21
                    
                    
                    
                    46Net
      Income/(loss) and comprehensive income/ (loss)
                    
                    $
                    1,694
                    
                    
                    $
                    (35
                    )
                    
                    $
                    (1,240
                    )
                    
                    $
                    (3,219
                    )Basic
      and diluted net income/(loss) per common share
                    
                    $
                    0.01
                    
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.02
                    )









Except
for historical information described in this press release, all
other statements are forward-looking. Forward-looking statements are
subject to certain risks and uncertainties inherent in the Company's business
that could cause actual results to vary, including such risks
that regulatory clinical and guideline developments may
change, scientific data may not be sufficient to meet regulatory standards
or receipt of required regulatory clearances or approvals, clinical results
may not be replicated in actual patient settings, protection offered
by the Company's patents and patent applications may be challenged,
invalidated or circumvented by its competitors, the available market
for the Company's products will not be as large as
expected, the Company's products will not be able to penetrate one or
more targeted markets, revenues will not be sufficient to fund further
development and clinical studies, the Company may not meet its future
capital needs, and its ability to obtain additional funding, as well as
uncertainties relative to varying product formulations and a multitude of
diverse regulatory and marketing requirements in different countries and
municipalities, and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission including its Annual Report
on Form 10-K for the year ended December 31, 2009.  Adherex
Technologies, Inc. disclaims any obligation to update these forward-looking
statements except as required by law.




For
a more detailed discussion of related risk factors, please refer to our public
filings available at www.sec.gov and
www.sedar.com.




For
further information, please contact:




Rosty
Raykov


Chief
Executive Officer


Adherex
Technologies Inc.


T: (919)
636-5144