KANE BIOTECH IDENTIFIES LEAD CANDIDATE
FOR COATING CENTRAL VENOUS CATHETERS

WINNIPEG, Manitoba (August 24, 2006) - Kane Biotech Inc. (TSX-V:KNE), a biotechnology company engaged in the development of products to prevent and disperse bacterial biofilms, is pleased to announce that it has identified a promising coating product for reducing infections associated with central venous catheters (CVCs). This milestone is the result of an intensive internal screening study designed to recognize promising candidates, and ultimately identify a lead candidate for further pre-clinical and clinical development.

The coating product, identified as KBI-4258, builds upon Kane Biotech's proprietary dispersinB technology. DispersinB is a novel enzyme responsible for inhibition and dispersal of bacterial biofilms, and is particularly effective against Staphylococcus epidermidis and Staphylococcus aureus, among the most common causes of infections associated with CVCs. By combining dispersinB with optimal amounts of an additional anti-microbial agent, Kane Biotech has developed a broad-spectrum, non-antibiotic, anti-biofilm coating for further development as a CVC coating.

"The selection of KBI-4258 is another important step for Kane as we develop a pipeline of products that leverage our expertise in the prevention of bacterial biofilms", stated Mr. Gord Froehlich, President of Kane Biotech Inc. "The effects of this composition have been impressive in the laboratory, and we therefore enter the next steps for this product with great enthusiasm."

In the United States alone, there are more than five million CVCs used each year. The use of CVCs is a necessary part of treatment in today's medical world; however, their use also puts the patient at serious risk of local and systemic complications due to infection. Catheter related bloodstream infections are associated with increased mortality, prolonged hospitalization and higher medical costs. Each bloodstream infection in an intensive care unit costs the healthcare system more than $35,000 per episode.

Kane Biotech recently announced the positive results of KBI-5898, its lead product for coating urinary catheters, in an in vivo study. As Kane Biotech advances KBI-4258 and KBI-5898, it continues to evaluate promising peptides acting on its novel CSP target for the development of a cavity fighting product. The Company's CSP technology has shown the ability to inhibit the formation and growth of biofilms in Streptococcus mutans, the primary cause of dental cavities.

About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development of products to prevent and disperse bacterial biofilms. Biofilms develop when bacteria, and other microorganisms, form a protective matrix that acts as a shield against attack. When in a biofilm, bacteria become highly resistant to antibiotics, high temperatures and host immune responses. This resiliency contributes to human health problems such as recurrent urinary tract infections, medical device associated infections and tooth decay.

For more information, please contact:

Michael Coutts
Director, Business Development
Kane Biotech Inc.
204-477-7597 phone
204-453-1314 fax
info@kanebiotech.com
www.kanebiotech.com

Certain information contained in this press release may be forward-looking and is subject to risks and uncertainties. Although the Company believes that the expectations contained herein are reasonable, it can give no assurances such forward-looking statements will prove correct. Information is provided from sources deemed to be reliable.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.