Kane Biotech Inc.
TSX VENTURE : KNE

Kane Biotech Inc.

May 26, 2006 14:05 ET

Kane Biotech Announces Increase to Private Placement Offering

WINNIPEG, MANITOBA--(CCNMatthews - May 26, 2006) - Kane Biotech Inc. (TSX VENTURE:KNE) (the "Company"), a leading biofilm company, today announces an increase in the size of its previously announced private placement offering (the "Offering") of up to 2,181,818 units ("Units") at a price of $0.55 per Unit for gross proceeds of up to $1,200,000. Due to strong demand for the Offering, the Company has determined to increase the size of the Offering to 2,727,273 Units at a price of $0.55 per Unit for gross proceeds of up to $1,500,000. Each Unit will still be comprised of one common share of the Company (a "Share") and one half of one Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Share at a price of $0.70 per Share for a period of 18 months from the date of issuance of the Warrant. All other terms of the Offering remain the same.

The Offering is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

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.

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