SOURCE: Prana Biotechnology

March 14, 2008 13:29 ET

Clarification of ADR Unlisted Warrants

Bank of New York Offers Special Conversion Incentive

Unlisted Warrants

MELBOURNE, AUSTRALIA--(Marketwire - March 14, 2008) - Prana Biotechnology Limited (NASDAQ: PRAN) (ASX: PBT) provides the following information in respect of the 3.32 million unlisted warrants currently on issue [PBTAM]. Each warrant is exercisable into 1 ADR at an exercise price of US$8.00 each (Each ADR is equivalent to 10 ordinary shares in Prana as quoted on the Australian Securities Exchange). In the event that all outstanding warrants are exercised this would result in Prana receiving US$26.56 million in additional funding. Prana has a further 380,000 unlisted options [PBTAK] issued under the company's 2004 US ADS share plan. Each of these options are exercisable into 1 ADR at an exercise price of US$5.00 each. If all of these outstanding ADS Plan options are exercised this would result in Prana receiving an additional US$1.9 million of funding.

ADR Conversion Incentive

Prana, in co-operation with the Bank of New York (Prana's "Depository" Bank) is pleased to announce that for the month of April issuance fees payable by shareholders to the Depositary for the conversion of ordinary shares into American Depositary Receipts (ADR) will be at the reduced rate of US$0.015 (one and a half cents) per ADR issued.

About Prana Biotechnology Limited

Prana Biotechnology was established to commercialize research into Alzheimer's Disease and other major age-related neurodegenerative disorders. The Company was incorporated in 1997 and listed on the Australian Stock Exchange in March 2000 and listed on NASDAQ in September 2002. Researchers at prominent international institutions including The University of Melbourne, The Mental Health Research Institute (Melbourne) and Massachusetts General Hospital, a teaching hospital of Harvard Medical School, contributed to the discovery of Prana's technology.

For further information, please visit the Company's web site at www.pranabio.com

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "hopes," "anticipates," "believes," "could," "may," "evidences" and "estimates," and other similar expressions, but these words are not the exclusive means of identifying such statements. Such statements include, but are not limited to any statements relating to the Company's drug development program, including, but not limited to the initiation, progress and outcomes of clinical trials of the Company's drug development program, including, but not limited to, PBT2, and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to the difficulties or delays in financing, development, testing, regulatory approval, production and marketing of the Company's drug components, including, but not limited to, PBT2, the ability of the Company to procure additional future sources of financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug compounds, including, but not limited to, PBT2, that could slow or prevent products coming to market, the uncertainty of patent protection for the Company's intellectual property or trade secrets, including, but not limited to, the intellectual property relating to PBT2, and other risks detailed from time to time in the filings the Company makes with Securities and Exchange Commission including its annual reports on From 20-F and its reports on Form 6-K. Such statements are based on management's current expectations, but actual results may differ materially due to various factions including those risks and uncertainties mentioned or referred to in this press release. Accordingly, you should not rely on those forward-looking statements as a prediction of actual future results.

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