Kane Biotech Inc.
TSX VENTURE : KNE

Kane Biotech Inc.

May 30, 2006 18:20 ET

Kane Biotech Announces Closing of Private Placement Offering

WINNIPEG, MANITOBA--(CCNMatthews - May 30, 2006) - Kane Biotech Inc. (TSX VENTURE:KNE) (the "Corporation") today announced the closing of its previously announced private placement offering (the "Offering") of up to 2,727,273 units (the "Units") at a price of $0.55 per Unit for aggregate gross proceeds of up to $1,500,000. Each Unit is comprised of one common share (a "Share") and one half of one Share purchase warrant (a "Warrant"). Each whole Warrant entitles 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. Pursuant to closing of the Offering, the Corporation issued 2,676,171 Units for gross proceeds of $1,471,894.

Certain persons and companies assisted the Corporation by introducing potential subscribers for the Offering and were paid a finder's fee of 8% of the total subscription proceeds received from subscribers introduced to the Corporation by each particular person and company. Additionally, these persons and companies were issued compensation warrants ("Compensation Warrants") equal to 7% of the total number of Units subscribed for by subscribers introduced to the Corporation by each particular person and company. Each Compensation Warrant entitles the holder thereof to purchase one Share at a price of $0.55 per Share for a period of twelve months from the date of issue.

The closing of the Offering is subject to the final 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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