Press releases

WINNIPEG, Manitoba ( January 25, 2005) - 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 acquired the worldwide exclusive rights to the Competence Stimulating Peptide (CSP) technology from the University of Toronto. This novel technology is based upon the discovery that CSP is associated with the formation of dental plaque, which can lead to dental cavities, periodontal diseases, and infective endocarditis. The technology includes inhibitors of CSP that have been shown to prevent CSP from performing its essential role in plaque formation. Kane Biotech's license to the CSP technology expands the Company's focus and broadens its technology portfolio.

"Kane Biotech is excited about the remarkable potential for developing products based upon the CSP target, which gives us a major advantage in the pursuit of a product to inhibit perhaps the most notorious of all biofilms, dental plaque", stated Mr. Marcus Enns, President of Kane Biotech. "A product that safely inhibits CSP activity will be a major breakthrough, and will give Kane Biotech access to several very significant markets."

The market for dental care in the United States is greater than $70 billion. In 2003, there was more than $3.7 billion spent on oral care consumer products alone.

Streptococcus mutans, a bacteria present in virtually all humans, occurs as part of the normal flora in the mouth and tends to concentrate in the fissures, pits and crevices that are a typical part of teeth and gums. These bacteria increase their numbers in dental plaque, leading to dental cavities and related complications. CSP has been shown to be responsible for many functions of Streptococcus mutans, including the regulation of biofilm formation (dental plaque), the ability to survive in acidic conditions, and the subsequent destruction of tooth enamel.

The University of Toronto Innovations Foundation (UTIF) represented the University of Toronto in negotiating the license agreement with Kane Biotech Inc. The agreement covers the worldwide rights to the CSP technology, its associated patents and provisional patents, and a number of existing molecules that have shown the ability to inhibit CSP activity in vitro. CSP was discovered and characterized in the laboratory of Dr. Dennis Cvitkovitch, Associate Professor, Faculty of Dentistry, University of Toronto. Dr. Cvitkovitch is a member of the Company's Scientific Advisory Board as was previously announced in the summer of 2004.

"It is a great pleasure for us to be partnered with highly respected organizations like the University of Toronto and UTIF, while further cementing our ties with Dr. Cvitkovitch, a well-respected and talented researcher", continued Mr. Enns. "This novel technology is an exciting addition to our growing pipeline of products and targets."

Kane Biotech continues to develop biofilm solutions based upon the genetic mechanisms of biofilm formation and numerous targets for biofilm prevention and dispersal. The Company has novel compounds that have been shown to inhibit biofilms, and which continue to progress as Kane Biotech pursues diligent development timelines.

About The University of Toronto
Founded in 1827, the University of Toronto is Canada's leading teaching and research university with more than 60,000 students and 300,000 alumni worldwide. The university comprises 31 divisions, colleges and faculties on three campuses. This includes 14 professional faculties, numerous research centres and Canada's largest university library system - the fifth largest research library in North America. For the 11th consecutive year, U of T has taken the top spot among medical/doctoral universities in the annual Maclean's magazine university ranking.

About The University of Toronto Innovations Foundation
The University of Toronto Innovations Foundation's (UTIF) goal is to maximize the impact of the more than $2 million spent every day on research at Canada's leading university and the associated institutions. UTIF was founded in 1980 to help researchers capitalize on unique opportunities in a variety of technologies. Staffed by over 20 professionals with a wide variety of technology and business experiences, UTIF is a leader in the field of technology commercialization.

About Dr. Dennis Cvitkovitch
Dr. Cvitkovitch is an Associate Professor in both the Faculty of Dentistry and the Institute of Biomedical and Biomechanical Engineering at the University of Toronto, where he has been on the Faculty since 1998. His research focus uses a variety of biochemical, molecular biological and in silico technologies to understand the mechanisms of cell-to-cell signaling and its role in biofilm formation and genetic exchange. Dr. Cvitkovitch has a Ph.D. in Oral Biology from the University of Manitoba and currently holds a prestigious Canada Research Chair. In addition, he holds grants from the National Institutes of Health in the United States, Canadian Institutes of Health Research, National Science and Engineering Research Council and the Canadian Foundation for Innovation.

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 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. Biofilms are estimated to be responsible for 65% of all human infections. Biofilms cost industry, cities and hospitals in excess of $500 billion each year. Researchers have only recently begun to appreciate the significance of biofilms and the ramifications of their existence.

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

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. This release is not to be construed as an offer to sell, or a solicitation for an offer to buy or trade securities.