Tikcro Technologies Closes Funding into BioCancell

TEL AVIV, Israel--(Business Wire)--
Tikcro Technologies Ltd. (OTC BB: TIKRF), today announced the
closing of the agreement to provide BioCancell Therapeutics, Inc., a
clinical-stage biopharmaceutical company, with $2.5 million in funding
to continue clinical trials of its drugs for the treatment of
superficial bladder carcinoma, ovarian and pancreatic cancers.

The following is a description of BioCancell's clinical trials
with its leading drug BC-819:

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- Superficial bladder carcinoma cancer
- commenced Phase IIb trial in 7 centers in Israel and in
the U.S. of intermediate-risk superficial bladder cancer.

- Pancreatic cancer
- preparing for a multi center Phase I/IIa clinical trial
for the treatment of pancreatic cancer.
- trial is expected at the Massey Cancer Center of
Virginia Commonwealth University in the U.S. and at the
Tel Hashomer Sheba Medical Center in Israel.

- Ovarian cancer
- preparing for a multi center Phase I/IIa clinical trial
for the treatment of ovarian cancer.
- Ongoing experimental treatment of ovarian cancer
conducted with a single patient in a leading medical
cancer center in Israel resulted with improvement in
clinical condition, a decrease of 50% in the ovarian
cancer marker protein CA-125 in the patient's blood, and
a significant decrease in the number of cancerous cells
in the ascites.
*T

Tikcro will provide BioCancell with $2.5 million in funding, out
of which $2.0 million is allocated to a four-year convertible note
with an exercise price of $0.72 per share, and $0.5 million is in the
form of BioCancell common stock for a price of $0.60 per share. In
addition, Tikcro will receive a five-year warrant with an exercise
price of $0.72 per share, for an aggregate exercise price of
approximately $3.0 million. As of July 29, 2008 the closing share
price of BioCancell was $0.60. Under the agreement, the share price,
conversion and exercise price were adjusted to reflect changes in the
share price of BioCancell on TASE through the closing date.

Tikcro now holds approximately 6% of the outstanding capital stock
of BioCancell. If the notes are converted in full, Tikcro will hold an
aggregate of approximately 24% of BioCancell's outstanding capital. If
the notes are converted and the warrants are exercised in full, Tikcro
will hold an aggregate of approximately 39% of BioCancell's
outstanding capital stock. This calculation takes into account the
share issuance required to support such conversion and exercise.

Mr. Aviv Boim, Tikcro's CEO will begin serving as a member of the
Board of BioCancell. Existing shareholders of BioCancell, Clal
Biotechnology Industries Ltd. and Provident Fund of the Employees of
the Hebrew University of Jerusalem in Israel participated with
additional funding of approximately $1.2 million.

More information about BioCancell is available on its website at:
www.biocancell.com.

About Tikcro Technologies:

Tikcro identifies potential technologies with a view to acquiring
stakes in, and directing the development of, one or more operating
companies in the technology area. Tikcro is headquartered in Tel Aviv,
Israel. For more information, visit the Tikcro website at:
www.tikcro.com.

Safe Harbor Statement

Certain of the statements contained herein may be considered
forward-looking statements that involve risks and uncertainties
including, but not limited to, risks that the transaction described in
the press release will not be consummated and risks related to the
operations of the Company's portfolio companies, early stage nature of
operations and the need to raise additional funds to support these
operations, including BioCancell Therapeutics, Inc., an early stage
pharmaceutical company active in the development and trial of target
gene-based drugs for the treatment of superficial bladder carcinoma,
ovarian and pancreatic cancer. Please see the risks and uncertainties
set forth in the Company's SEC reports including the Company's Form
20-F. Actual results may materially differ. Results of operations in
any past period should not be considered indicative of the results to
be expected for future periods. We undertake no duty to update any
forward-looking information.

Investor Relations
KCSA Strategic Communications
Jeff Corbin / Marybeth Csaby
212-896-1214 / 1236
jcorbin@kcsa.com / mcsaby@kcsa.com

Copyright Business Wire 2008