Kane Biotech Files New Patent on Bone Tissue Regeneration Invention

WINNIPEG, MANITOBA--(Marketwire - Aug. 30, 2011) -

Highlights:

• Invention and patenting of a new bone tissue regenerating technology
• Global annual market for bone tissue regeneration is over $32 billion per year
• Invention has potential to be used in combination with existing bone tissue regenerating products

Kane Biotech Inc. (TSX VENTURE:KNE), a biotechnology company engaged in the development and commercialization of products that prevent and remove microbial biofilms, is pleased to announce the invention and patenting of a new bone tissue regenerating fusion peptide based on the Company's competence stimulating peptide (CSP) oral care technology.

This new patent covers the invention of a unique combination product using the Company's CSP technology to help grow bone cells by enhancing bone cell binding and bone tissue regeneration.

The invention can be used for: (i) osteogenic cell binding for repairing the dental bone defects such as those caused by bone loss resulting from moderate to severe periodontitis, (ii) filling tooth extraction sites or sinus elevation grafting, (iii) treatment of fractures, (iv) using as a filler in bone, (v) prevention of decrease in the bone substance related to osteoporosis, and (vi) prevention of fractures associated with osteoporosis and rheumatoid arthritis.

The global market for bone tissue regeneration is over $32 billion a year. This includes dental bone grafts, osteoporosis, osteoarthritis and rheumatoid arthritis. The dental bone graft global market alone is estimated at $266 million per year.

"This exciting new invention gives us the opportunity to discuss our technology platforms in a new global market as we continue to focus our near term resources and attention on DispersinB^®," stated Mr. Gord Froehlich, President and Chief Executive Officer of Kane Biotech.

"In addition to antimicrobial activity against dental cavity and periodontal diseases associated bacteria, we are excited to learn our CSP-based technology has potential to be used in combination with bone tissue regenerating products for the treatment of diseases and defects related to bone loss and bone regeneration," added Mr. Froehlich.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the development and commercialization of products to prevent and remove biofilms. Biofilms are a major cause of a number of serious medical problems such as catheters, prosthetic implants, teeth, lungs, and the urogenital tract. Biofilms are pervasive, costly to deal with and are involved in approximately 80% of all human bacterial infections. The healing of chronic wounds alone cost the United States health care system $20 Billion per year.

Kane Biotech uses patent protected technologies based on molecular mechanisms of biofilm formation/dispersal and methods for finding compounds that inhibit or disrupt biofilms. The Company has evidence that these technologies have potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.

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Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

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These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Kane cannot provide assurance that actual results will be consistent with these forward-looking statements. Kane undertakes no obligation to update or revise any forward-looking statement.