SOURCE: Grant Life Sciences Inc.

July 11, 2006 12:22 ET

Grant Life Sciences Extends Through September 2006 Its Memorandum of Understanding (MOU) With Diagnostic Technology Ltd. (DTL), Which Is Conducting Due Diligence Associated With Developing and

Commercializing Grant's Cervical Cancer-Diagnostic Platform

LOS ANGELES, CA -- (MARKET WIRE) -- July 11, 2006 -- MOU, Announced in April 2006, Includes Payment of $250,000 to Grant Upon Successful Completion of DTL's Due Diligence and Signing of a Licensing Agreement, Plus Ongoing Royalties Upon Commercialization of the Resulting Product; Also, DTL Would Conduct and Fund All Development Costs, Including Clinical Trials, Associated With the Commercialization of the Products Developed From Grant's Cervical Cancer Diagnostic Technology

"This Event Positions Grant Life Sciences to Begin the Execution of Its New Corporate Strategy: (1) Acquire New Products and Technologies Through In-Licensing Activities; (2) Optimize These Products and Technologies; and Then (3) Out-License Them for Further Development and Sales, or (4) Drive Sales Through Our Established Marketing Channels." Dr. Hun-Chi Lin, President and Chief Scientist

Grant Life Sciences Inc. (OTCBB: GLIF) announced today it has extended through Sept. 2006 its Memo of Understanding (MOU) with Israel-based Diagnostic Technology Ltd. (DTL) related to Grant's cervical cancer-diagnostic technology (U.S. Patent No. 6,743,593). Under the MOU, Grant will receive an upfront payment of $250,000 upon successful completion of DTL's due diligence and the subsequent signing of a Licensing Agreement. Under the Licensing Agreement, DTL would assume all costs and efforts associated with commercialization of products, including clinical trials, developed by DTL from Grant's cervical cancer-diagnostic technology platform. Upon commercialization, DTL would pay Grant an ongoing royalty on sales of the products developed, according to the MOU.

Assuming acceptable due diligence by DTL, the definitive Licensing Agreement is expected to be signed by September 2006. Upon signing, DTL will immediately assume all of the costs associated with turning Grant's core technology related to cervical-cancer diagnostics into a commercially viable product. The diagnostic product based on Grant's technology is expected to augment and complement DTL's established suite of diagnostics aimed at the women's health market.

"This relationship, once fully consummated, will represent a very significant milestone in the evolution of our company into a commercial entity," said Hun-Chi Lin, Ph.D., Grant's President and Chief Scientist. "Grant will finally have the opportunity to focus its efforts on boosting revenues from sales in India and Southeast Asia of its extensive portfolio of rapid AccuDx tests for Malaria, Dengue Fever, HIV-1, HIV-2, and numerous other diseases. In addition, the market for cervical cancer testing is substantial, and DTL intends to aggressively conclude development of Grant's novel, protein-based diagnostic test and commercialize the product expeditiously."

"We are happy with the opportunity ... to fast-forward development and commercialization of a diagnostic product based on Grant's cervical cancer diagnosis technology," said Hamutal Meiri, Ph.D., Chief Executive Officer of DTL, in a Grant press release dated April 6, 2006. "We hope that their technology will enable the detection of the presence of antibodies produced only by cancer-causing HPV-types and profile them." (According to the National Cancer Institute there are some 100 types of HPV. However, only about 7 to 15 of these appear to cause cervical cancer, with certain HPV-types especially virulent in this regard. Cancer-causing HPV-types express certain unique proteins that help trigger the disease.) "The parties to the MOU believe that the product developed using Grant's technology can distinguish these cancer-causing proteins from those made by non-cancer-causing HPV-types," added Dr. Meiri "DTL therefore expects that using Grant's technology will enable it to determine whether a woman has cervical cancer or pre-cervical cancer conditions."

"Grant has recently established OEM arrangements to manufacture and distribute more than two-dozen immunoassay tests for the large markets in India and Southeast Asia," said Stan Yakatan, Grant's Chairman. "In addition, Grant plans to continue adding new products in the areas of infectious diseases, hormones, and cancer biomarkers, for sale to these markets in the future."

About Diagnostic Technology Ltd. (DTL)

DTL, based in Haifa, Israel, is a public company that has licensed from Technion a technology for the prediction of the risk of preeclampsia in maternal serum. According to the CDC, preeclampsia affects five to seven percent of all pregnant women and can result in: loss of life; blindness; motor and mental disorders or premature newborns; pregnancy hypertension; and kidney, liver and cardiovascular malfunctioning. It is estimated that nearly $30 billion is spent today in healthcare costs to treat women with preeclampsia and their newborns. DTL's simple blood test for the early prediction of preeclampsia is now in clinical trials. TEUZA, an Israeli venture fund, is the major investor in the Company. On Jan. 31, 2006, PerkinElmer, Inc, announced that it had secured the exclusive global rights to the test for identifying patients at risk for preeclampsia developed by DTL.

About Grant Life Sciences Inc.

Grant Life Sciences Inc. Grant Life Sciences, Inc. (OTCBB: GLIF), a development stage company, engages in the research, development, marketing, and sale of diagnostic kits for the screening, monitoring, and diagnosis of diseases with emphasis on women's health, infectious diseases, and cancers.

Forward-Looking Safe Harbor Statement

With the exception of historical information, the matters discussed in this press release are "forward-looking statements" that involve a number of risks and uncertainties. The actual future results of Grant Life Sciences could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rates and unanticipated events such as terrorist activities, results of clinical trials, and market acceptance of the Company's products. In some cases, "forward-looking statements" can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," or other comparable terminology. Although Grant Life Sciences believes that the expectations reflected in the "forward-looking" statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such "forward-looking statements" will be achieved. Grant Life Sciences undertakes no duty to update any of the "forward-looking statements," whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such "forward-looking statements." For further risk factors associated with our Company, review our SEC filings.

Contact Information

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    Don Rutherford
    CFO
    949-521-1232