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Prana Biotechnology Presents New Key Findings on PBT2

PBT2 Alters Biomarkers and Rapidly Improves Cognition in two distinct models of Alzheimer's Disease

MELBOURNE, Australia - June 7, 2007 - Prana Biotechnology Limited (NASDAQ: PRAN / ASX: PBT), a biopharmaceutical company focused on the research and development of treatments for neurodegenerative disorders, announced today that it will present new data on Prana's lead Alzheimer's disease (AD) drug PBT2 at the Alzheimer's Association International Conference on Prevention of Dementia, in Washington D.C.

Professor Colin Masters MD, Executive Director and Laureate Professor Mental Health Research Institute and The National Neuroscience Facility University of Melbourne and Director of the Company will present the findings on June 9, in a lecture entitled "Alzheimer's Disease: Abeta amyloid as the principal molecular therapeutic and diagnostic target." The presentation will include data from manuscripts currently under preparation for publication by scientists from Prana, The Mental Health Research Institute and The University of Melbourne.

While PBT2 is currently in Phase IIa development, the presentation will detail the results of the expansive mouse cognitive and biomarker studies recently completed on PBT2, including several key findings such as:

* PBT2 potently inhibits synthetic Abeta forming toxic soluble oligomers in vitro; * PBT2 reduces Abeta oligomer levels detected in secretions from the brains of conscious, freely-moving AD transgenic mice within 4hrs of oral administration. This observation was reproduced in two genetically distinct mouse models. * PBT2 sharply improves cognitive performance in the Morris Water Maze for two genetically distinct mouse models of AD within 5 to 7 days of treatment; and * The brains of the mice with improved cognition showed a substantial reduction in the biomarkers phosphorylated tau and Abeta, while simultaneously raising the level of the neuronal mar
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