Press releases

WINNIPEG, Manitoba ( Jan. 20, 2005) - Kane Biotech Inc. (TSX VENTURE:KNE) a biotechnology company engaged in the development of products to prevent and disperse bacterial biofilms, announces today that the private placement announced on December 6, 2004 (the "Offering") of 3,000,000 common shares (the "Shares") at a price of $0.40 per Share, closed today for aggregate gross proceeds to the Company of $1,200,000. The net proceeds of the Offering shall be used for research and development and working capital purposes.

The Shares are subject to a four-month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The Offering was non-brokered and no commissions or finder's fees were paid to any party in connection with the Offering.

As announced by the Company in its press release dated December 7, 2004, certain insiders of the Company arranged for the prior sale of an aggregate of 355,834 common shares at a price of $0.45 per share through the facilities of the TSX Venture Exchange. A portion of the proceeds raised through the sale of the common shares was used by certain insiders of the Company to purchase 373,334 common shares under the Offering.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the development of products to prevent and disperse bacterial biofilms. The Company is developing products for the prevention and dispersal of biofilms focused on the genetic mechanisms of biofilm formation, and originally based upon the discovery of over 60 novel anti-biofilm targets. Biofilms are microbial populations in a self-produced matrix able to withstand antibiotics, high temperatures and host immune responses. Biofilms cost industry, cities and hospitals in excess of $500 Billion each year.

For more information, please contact:

Marcus Enns
President
Kane Biotech Inc.
204-487-2328 phone
204-488-9823 fax
info@kanebiotech.com
www.kanebiotech.com

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. This release is not to be construed as an offer to sell, or a solicitation for an offer to buy or trade securities.