Kane Biotech ends early exercise warrant incentive program

Kane Biotech Inc. (TSX VENTURE:KNE) (the "Company"), a biotechnology company engaged in the development of products that prevent and disperse microbial biofilms announces that the exercise period of the Company's early exercise warrant incentive program (the "Program") has ended. The Program was previously announced in the Company's press release dated August 6, 2009.

Existing holders of certain common share purchase warrants of the Company (the "Warrants") exercised an aggregate of 2,088,500 Warrants at a price of $0.12 per Warrant for aggregate gross proceeds of $250,620. Existing Warrant holders who exercised their Warrants pursuant to the Program shall receive one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (an "Incentive Warrant") for each Warrant exercised. Each whole Incentive Warrant will have a term of 18 months from the date of issuance and will entitle the holder to purchase one Common Share at a price of $0.14 for the first six months of its term and at a price of $0.22 for the remainder of its term. The Incentive Warrants and any Common Shares issuable on the exercise thereof will be subject to a four month hold period commencing on the date of issuance of the Incentive Warrants pursuant to applicable Canadian securities laws. Certificates representing the Common Shares and Incentive Warrants issuable pursuant to the Program will be issued as soon as administratively practical.

All Warrants not exercised pursuant to the Program have now expired.

No compensation was paid by the Company to any soliciting agent or finder in connection with the Program.

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