XTL Biopharmaceuticals Ltd. Announces $9.6 Million Private Placement to Institutional Investors

Oct 25, 2007, 01:00 ET from XTL Biopharmaceuticals Ltd

    NEW YORK, October 25 /PRNewswire-FirstCall/ -- XTL Biopharmaceuticals
 Ltd. (NASDAQ:   XTLB)(LSE: XTL)(TASE: XTL) today announced that it has
 entered into definitive agreements with institutional investors relating to
 a private placement of an aggregate of $9.6 million in gross proceeds of
 ordinary shares, represented by American Depositary Receipts (ADRs). The
 lead investors in the transaction are Perceptive Life Sciences Fund, Quogue
 Capital LLC, SCO Capital Partners and Versant Capital.
     Ron Bentsur, Chief Executive Officer of XTL, commented, "We are very
 pleased to have consummated this financing with high-quality investors in
 the biotechnology sector in the U.S. Following this offering, we believe
 that we will have sufficient capital to execute our business plan and, more
 importantly, to reach what we believe could be a major value-enhancing
 milestone - the completion of our on-going randomized, placebo-controlled
 Phase IIb trial of Bicifadine in diabetic neuropathic pain."
     Pursuant to the securities purchase agreements, the Company will,
 following the closing, issue approximately 7.1 million ADRs, representing
 approximately 71 million ordinary shares. No warrants were issued in the
 transaction. XTL has agreed to register the ordinary shares and list the
 ADRs for trading on the Nasdaq Stock Market.
     Closing of the transaction is conditional upon, among other things, the
 delisting of the Company's ordinary shares from the Official List of the
 United Kingdom Listing Authority, scheduled to take place at 8:00 am
 (London Time) on October 31, 2007.
     Punk, Ziegel & Company, L.P. and Brean Murray, Carret & Co., LLC acted
 as placement agents in the transaction.
     XTL Biopharmaceuticals Ltd. ("XTL") is engaged in the development of
 therapeutics for the treatment of neuropathic pain and hepatitis C. XTL is
 developing Bicifadine, a serotonin and norepinephrine reuptake inhibitor,
 for the treatment of diabetic neuropathic pain. XTL is also developing
 several novel pre-clinical hepatitis C small molecule inhibitors. XTL also
 has an active in-licensing and acquisition program designed to identify and
 acquire additional drug candidates. XTL is publicly traded on the NASDAQ,
 London, and Tel-Aviv Stock Exchanges (NASDAQ:   XTLB; LSE: XTL; TASE: XTL).
     The offering was made only to accredited investors, as such term is
 defined in accordance with the Securities Act of 1933, as amended. The
 ordinary shares have not been registered under the Securities Act of 1933,
 or any state securities laws. Therefore, they may not be offered or sold in
 the United States absent registration under or exemption from the
 Securities Act of 1933 and any applicable state securities laws. This
 announcement is neither an offer to sell nor a solicitation of an offer to
 buy our ordinary shares or warrants to purchase ordinary shares.
     Ron Bentsur, Chief Executive Officer
     Tel: +1-(845)-267-0707 ext. 225
     Cautionary Statement
     Some of the statements included in this press release, particularly
 those anticipating future financial performance, the delisting of our
 ordinary shares from the Official List of the United Kingdom Listing
 Authority, the clinical and business prospects for our clinical compound
 Bicifadine, growth and operating strategies and similar matters, may be
 forward-looking statements that involve a number of risks and
 uncertainties. For those statements, we claim the protection of the safe
 harbor for forward-looking statements contained in the Private Securities
 Litigation Reform Act of 1995. Risk factors that could adversely affect our
 operations are identified from time to time in our reports filed with the
 Securities and Exchange Commission and the London Stock Exchange, including
 our annual report on Form 20-F filed with the Securities and Exchange
 Commission on March 23, 2007. Any forward-looking statements set forth in
 this press release speak only as of the date of this press release. We do
 not intend to update any of these forward-looking statements to reflect
 events or circumstances that occur after the date hereof. This press
 release and prior releases are available at http://www.xtlbio.com. The
 information in our website is not incorporated by reference into this press
 release and is included as an inactive textual reference only.

SOURCE XTL Biopharmaceuticals Ltd