Kane Biotech Receives $405,000 Contribution From the National Research Council Canada Industrial Research Assistance

WINNIPEG, MANITOBA, Jan 15 (MARKET WIRE) --
Kane Biotech Inc. (TSX VENTURE: KNE), a biotechnology company engaged in
the development of products that prevent and disperse microbial biofilms,
is pleased to announce that it has received a $405,000 contribution from
the National Research Council Industrial Research Assistance Program
(NRC-IRAP). The contribution will be applied to the development of the
Company's novel antibiofilm topical wound gel containing its patented
DispersinB(TM) technology. DispersinB(TM) wound gel is being developed to
treat chronic wound infections.

"We are very pleased that the NRC-IRAP has chosen to support the
development of this important technology for treating chronic wounds such
as diabetic foot ulcers and venous leg ulcers," stated Gord Froehlich,
President and CEO of Kane Biotech. "DispersinB(TM) is a first of its kind
technology that both prevents and removes the biofilm in chronic wounds
allowing antiseptics and antibiotics to offer highly effective microbial
control."

Chronic wounds are a serious debilitating complication of vascular
disease, diabetes and prolonged immobility and are a huge unmet clinical
need that costs the U.S. healthcare system $20 billion per year. "We are
currently preparing our pre-IDE regulatory package for the United States
Food and Drug Administration to test DispersinB(TM) in a chronic wound
human clinical trial. NRC-IRAP support will greatly assist in our product
development," added Mr. Froehlich.

NRC-IRAP provides a range of both technical and business oriented
advisory services along with potential financial support to
growth-oriented Canadian small and medium-sized enterprises. Working
directly with these clients, NRC-IRAP supports innovative research and
development and commercialization of new products and services.

Biofilms are a major cause of a number of serious medical problems in
humans and animals including chronic and medical device related
infections. They develop on surfaces such as catheters and prosthetic
implants, inner ears, teeth, gums, lungs and the urogenital tract.
Biofilms are pervasive and costly to the healthcare industry;
approximately 80% of all human bacterial infections involve biofilms.

About Kane Biotech Inc.

Kane Biotech is a biotechnology company engaged in the development of
products to prevent and disperse 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, biocides, disinfectants, 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.

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

Caution Regarding Forward-Looking Information

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.

These statements reflect management's current beliefs and are based on
information currently available to management. Certain material factors
or assumptions are applied in making forward-looking statements, and
actual results may differ materially from those expressed or implied in
such statements. Important factors that could cause actual results to
differ materially from these expectations include, among other things:
Kane's early stage of development, lack of product revenues and history
of operating losses, uncertainties related to clinical trials and product
development, rapid technological change, uncertainties related to
forecasts, competition, potential product liability, additional financing
requirements and access to capital, unproven markets, supply of raw
materials, income tax matters, management of growth, partnerships for
development and commercialization of technology, effects of insurers'
willingness to pay for products, system failures, dependence on key
personnel, foreign currency risk, risks related to regulatory matters and
risks related to intellectual property and other risks detailed from time
to time in Kane's filings with Canadian securities regulatory
authorities, as well as Kane's ability to anticipate and manage the risks
associated with the foregoing. Kane cautions that the foregoing list of
important factors that may affect future results is not exhaustive. When
relying on Kane's forward-looking statements to make decisions with
respect to Kane, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.

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.

TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.

Contacts:
Kane Biotech Inc.
Justin Gagnon
Manager, Investor Relations
(204) 478-5602
(204) 453-1314 (FAX)
Email: jgagnon@kanebiotech.com
Website: www.kanebiotech.com

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