WINNIPEG, MANITOBA -- (MARKET WIRE) -- 09/07/2006 -- Kane Biotech Inc. (TSX VENTURE: KNE), a biotechnology company engaged in the development of products to prevent and disperse bacterial biofilms, is pleased to announce that it has entered into an important efficacy study with its promising coating technology for reducing infections associated with central venous catheters (CVCs). KBI-4258 is a proprietary combination of the Company's exclusively licensed dispersinB technology and an anti-microbial agent.

The pre-clinical study is designed using a recognized in vivo model with two key endpoints. The first endpoint is a reduction in bacterial colonization on the catheter surface. The second endpoint is a reduction in catheter related infection, as measured by testing for the presence of bacteria at the site surrounding the catheter. The study will have multiple groups, testing CVCs coated with KBI-4258, commercially available CVCs and uncoated control CVCs.

"Establishing in vivo data to support KBI-4258 is the next important step in the pathway to develop our pipeline of coating technologies for medical devices", stated Mr. Gord Froehlich, President of Kane Biotech Inc. "The medical community is extremely concerned about the number of people who acquire infections after being admitted to the hospital, particularly from indwelling catheters. The market is recognizing that coating medical devices that cause these infections is an absolute necessity."

Infections acquired in the hospital are a serious medical problem and the fourth leading cause of death in the United States. According to experts, central venous and urological catheters are known to be amongst the most susceptible of all medical devices to infection and together are associated with about half of all hospital infections. Each year, hospital acquired infections cost United States healthcare providers over $11 billion.

Kane Biotech is developing KBI-4258 to address the critical unmet need caused by catheter related bloodstream infections (CR-BSI). Venous catheters are a standard part of today's medical care and allow access to the patient's body without the continual insertion of needles. The routine use of CVCs, however, puts patients at risk of CR-BSI, at an estimated cost of more than $14,000 per incident. The total market for CVCs is over $300 million in the United States alone.

The Company is also developing a solution to the serious problem of catheter associated urinary tract infections (CAUTI) with its proprietary KBI-5898. As the most commonly applied catheter in hospital care and a prime medium for bacterial colonization, urinary catheters lead to numerous incidents of CAUTI. Kane Biotech recently announced positive in vivo results of a urinary catheter efficacy study with KBI-5898. The total market for urinary catheters is over $250 million in the United States alone.

"There is a growing unmet clinical need for products to control the impact of catheter associated infections", added Mr. Froehlich. "With a growing pipeline of products targeting these needs, we are extremely enthusiastic about the coming months for Kane Biotech as we move our products closer to market."

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.

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.