Letter to the Shareholders of ALDA Pharmaceuticals Corp.

ALDA Pharmaceuticals Corp. (TSX VENTURE:APH)(OTCBB:APCSF) - 

It has been an eventful year and an even more eventful quarter. As shown in the
financial statements filed on SEDAR on Friday, January 15, 2010, revenues for
the quarter ended December 31, 2009 were nearly $1 million. Compared to
corresponding quarters of previous years, this was an 18-fold increase in
revenues. This dramatic increase came about for a number of reasons, including
the Company becoming an Official Supplier to the Vancouver 2010 Winter Games
("The Winter Games"), concerns about the H1N1 pandemic, health authorities
recommending the use of hand sanitizers and a general shortage of hand
sanitizers in the market. A host of new customers started stocking ALDA's T36(R)
Antiseptic Hand Sanitizer and some also offered T36(R) Disinfectant to their
customers. The new retail outlets included Shoppers Drug Marts, Pharmasave,
London Drugs, T&T Supermarkets and IGA Marketplace. The Company also became a
supplier to Acklands-Grainger, Inc. ("AGI") Canada's largest distributor of
industrial, safety and fastener products.


The bulk of the sales were of T36(R) Antiseptic Hand Sanitizer in 60 and 240 ml
bottles and 900 and 1,200 ml bags for manual and automatic dispensers which were
placed throughout various VANOC locations including the Richmond Olympic Oval
and General Motors Place, Vancouver International Airport ("YVR") Grouse
Mountain Resorts, the municipalities of New Westminster and Richmond, VANOC
headquarters and the Whistler Conference Centre.


As the Winter Games approach, ALDA and T36(R) will be receiving an increased
amount of publicity and exposure from posters that are placed throughout the
Skytrain system and large billboards at YVR and the Canada-US border. The
Company's products will be found throughout the Winter Games and samples will be
purchased by VANOC for athletes, volunteers and media representatives.


While sales were much higher than usual, production expenses also increased
proportionately and gross margins of approximately 27% were achieved. Management
will look for cost savings as demand for products becomes more predictable but
the financial commitments to VANOC during the next quarter suggest that
profitability will be unlikely. A obvious way to improve margins is for the
Company to control its own manufacturing and management will be reviewing this
possibility once the demand for product has stabilized and proper projections
can be made.


A major effort will be undertaken in sales and marketing now that the hand
sanitizer market is less frantic. There are still many potential customers that
can be approached and the current customers will be needing assistance from the
Company to properly position and promote T36(R) products.


The Company received a substantial amount of publicity since the VANOC agreement
was announced including interviews with CBC, CTV and Global TV, Business in
Vancouver and BNN. With an estimated 10,000 media representatives attending the
Winter Games, more opportunities are likely to arise.


The short-term focus for the Company is to capitalize on the exposure and
credibility provided by the Winter Games by taking and holding as much market
share as possible. In the medium term, the focus in on achieving registration of
the T36(R) products in other jurisdictions that recognize Canadian Drug
Identification Numbers ("DIN's"). In the long-term, the Company will continue
working towards the registration of T36(R) formulations for therapeutic
applications.


Although the last quarter was a turning point for the Company, sales of
commercial and consumer products do not match the long term potential of the
therapeutic application of ALDA's patented T36(R) technology. One of the first
applications to be pursued is the use of T36(R) as a pre-surgical and
pre-injection skin antiseptic. An Investigational New Drug ("IND") submission
has been presented to the FDA for consideration. Four pre-clinical tests are
likely to be required before human clinical trials can begin but the protocols
have been established and are included in the submission. The Company is
interested in the antiseptic market because Enturia, the company that brought
the leading skin antiseptic to the market, was purchased by Cardinal Health for
$490 Million in April, 2008.


Other planned therapeutic products include first aid ointments for cuts scrapes,
insect bites, etc., a combination of T36(R) and anti-inflammatories, analgesics
and anesthetics for use on more intractable skin conditions and infections such
as eczema, psoriasis and fungal infections, such as athlete's foot, diaper rash
and toenail infections. Treatment for vulvovaginal infections ("VVI's") have
been prepared that will combat all classes of infectious organisms rather than
just fungi which are responsible for only about one-third of all VVI's. A
version of the VVI treatment has been prepared as a microbicidal gel that is
designed to prevent the spread of sexually transmitted infections ("STI's").


Management has established a clear plan for the future and is of the opinion
that all of the objectives that have been presented in the past have been met as
time and funds have allowed. With the past track record as a reference, we are
confident that our goals in the future will be met.


Terrance G. Owen, Ph.D., M.B.A., President & CEO

Cautionary Note Regarding Forward-looking Statements: Information in this press
release that involves ALDA's expectations, plans, intentions or strategies
regarding the future are forward-looking statements that are not facts and
involve a number of risks and uncertainties. ALDA generally uses words such as
"outlook", "will", "could", "would", "might", "remains", "to be", "plans",
"believes", "may", "expects", "intends", "anticipates", "estimate", "future",
"plan", "positioned", "potential", "project", "remain", "scheduled", "set to",
"subject to", "upcoming", and similar expressions to help identify
forward-looking statements. The forward-looking statements in this release are
based upon information available to ALDA as of the date of this release, and
ALDA assumes no obligation to update any such forward-looking statements.
Forward-looking statements believed to be true when made may ultimately prove to
be incorrect. These statements are not guarantees of the future performance of
ALDA and are subject to risks, uncertainties and other factors, some of which
are beyond its control and may cause actual results to differ materially from
current expectations.