SOURCE: Entest BioMedical Inc.

December 22, 2010 10:00 ET

Entest BioMedical Executes Definitive Purchase Agreement to Acquire McDonald Animal Hospital

Entest's First Veterinary Clinic Acquisition Has Historical Revenues of $700,000 per Year

Anticipated Strong Growth Potential With an Established Presence in Santa Barbara, CA

SAN DIEGO, CA--(Marketwire - December 22, 2010) - Entest BioMedical Inc. (OTCBB: ENTB) announced today it has executed a definitive purchase agreement to acquire the McDonald Animal Hospital (MAH) located in Santa Barbara, California. The terms of the purchase agreement involve an asset acquisition of MAH and an employment contract for the principal veterinarian, Dr. Gregory McDonald. Dr. McDonald is also a member of Entest's Scientific Advisory Board and is helping the Company in developing its ImenVax™ immuno-therapeutic cancer vaccine for dogs.

Entest has been working for the past 18 months creating a solid foundation of patent applications and scientific publications dealing with cancer and COPD using vaccines and stem cells, respectively. One of the major drawbacks of developing human therapeutics is the long lag time before revenue generation. By entering the veterinary space, the company aims to start generating revenue by providing services, while having direct access to evaluating efficacy of our treatments in large animal models.

Entest BioMedical's Chairman & CEO David Koos stated, "This acquisition represents Entest coming of age. We are not only focused on veterinary aspects of biotechnology, but are concentrating an equal amount of energy on implementing our revenue generating model as well. The McDonald Animal Hospital acquisition not only marks our first step in veterinary clinics, but ushers in a novel concept to biotechnology companies -- revenue."

Mr. Koos further stated, "This first acquisition not only brings immediate revenue from operations to our company, but this clinic treats on averaged more than 700 dogs with cancer per year and has the potential to provide an important link in the distribution chain of the ImenVax™ immuno-therapeutic cancer vaccine for dogs."

Entest is developing a tumor vaccine, ImenVax™, which uses tumor cells extracted from a patient, prepared outside of the body, and reintroduced in a manner that stimulates the immune response towards the tumor. Initial animal trials have already been approved and are anticipated to begin shortly.

About Entest BioMedical Inc.:

Entest BioMedical Inc. (OTCBB: ENTB) is a developer of veterinary medicines that harness the animal's own reparative / immunological mechanisms. The company's products include an immuno-therapeutic cancer vaccine for canines (ImenVax™). The company's immuno-therapeutic cancer vaccine utilizes an encapsulation device as the vaccine delivery system and requires a simple implant procedure.

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This news release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

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