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Can-Fite Proceeds with Development of Third Drug; Progress in,Development of CF502 Will Be Presented at the Annual European,Congress of Rheumatology

PETACH TIKVA, Israel--(BUSINESS WIRE)--Jun 14, 2007 - Can-Fite BioPharma (TASE:CFBI), a biotechnology company traded on the Tel Aviv Stock Exchange Exchange, proceeds with the development of its third drug CF502; this is in addition to CF101, which is currently in clinical trials and CF102, which is in preclinical phases. This weekend Can-Fite will present at the EUALR annual congress of rheumatology in-vitro and in vivo study results showing effective anti-inflammatory activity for CF502. The EUALR congress is highly regarded and attracts global leaders in the Rheumatology arena.

The chemical structure of CF502 differs from that of the Company's first two drugs CF101 and CF102, and is characterized by higher affinity and selectivity to the A3 adenosine receptor, which is targeted by the Can-Fite's drugs. The drug attacks inflammatory cells and leads to programmed cell death (apoptosis) and suppression of the inflammatory process. Can-Fite is using human cells to investigate the effects and mechanism of action of CF502. The Company is currently finalizing the development of CF502 synthesis process, before entering preclinical and clinical development phases.

Can-Fite will present at the rheumatology congress in-vitro data showing that CF502 specifically targets inflammatory cells and does not affect healthy cells, and will also present the drug's molecular mechanism of action. In addition in vivo data showing marked anti-inflammatory effects of CF502 will be reported. The Company will also present new data on the expression of A3 adenosine receptor in various autoimmune diseases. High expression of this receptor is directly correlated with response of inflammatory cells to this drug.

Prof. Pnina Fishman, CEO of Can-Fite: "I am pleased with the rapid progress in the CF502 development program and with the in-vitro and in vivo trial results showing impressive anti-inflammatory activity for this drug.
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