Cannabis Science Provides Guidance for Proposed Dividend Payout to Shareholders of Record for a New Class of Common Shares; Including Ratio Structured Shareholder Dividend Payment, a Price Structured Trading Ratio for the New Class of Common Shares, and Ratio Dividend Payments Based On the Class of Shares Owned

COLORADO SPRINGS, Colo., Oct. 28 /PRNewswire-FirstCall/ -- Cannabis Science, Inc. (OTC Bulletin Board: CBIS), a pioneering US biotech company developing pharmaceutical cannabis products, is pleased to provide guidance to its shareholders and the general public for the proposed structure of the new Class of shares, dividend payouts, and proposed shareholder record date. On November 2, 2010 the Company will provide its guidance on and finalize its new Class of shares decision. Thus far, the guidance contemplates a 30:1 as dividend share payment and possibly as high as 10:1 share payout for all shareholders of record to receive the new class of shares as a shareholder dividend payment.

The Company is studying the Berkshire Hathaway example including two Classes of common stock, Class A as the new Class, and Class B will be the current trading common shares. Each Class of shares will have its own proposed trading symbol and will contain certain Berkshire Hathaway characteristics that allow a level share price ratio discrepancy controls to ensure a constant ratio price difference between the two share classes.  

This shareholder expansion program is also key to pursuing some outstanding financing opportunities for the Company for up to $5 million for FDA Clinical trials and operations. These are ranging in financing pricing between $1.00 and $3.00 for the new Class of common share if the new share ratio pricing holds its weight during the Company's growth curve. Thus far with today's pricing we are looking at approximately $1.50 based on a 10:1 ratio of the current common share price, based on a 30:1 payout that could set the price to well above $3.00 per share. The higher price setting is commonly coinciding with the current common share price. The higher the price value will be placed on the new class of shares the higher the dollar value will be for those shareholders receiving them. Cannabis Science believes this gives our current shareholders of record an outstanding opportunity to capitalize on the share dividend payout creating another asset base for them while the company creates the new Class of common shares with a higher value via a dividend payment of this new Class of shares to shareholders of record who own the current common stock.

New Class of Shares and Dividends:

The Company is currently finalizing the following terms and structure in regards to the new Class A common shares:

1. A 30:1 or as high as 10:1 ratio dividend payment in the new Class A common shares for current common stockholders.
2. A price ratio conversion feature on the new Class A shares to ensure the integrity of the share price ratio during market fluctuations between the new Class A and B common share classes, similar to that of Berkshire Hathaway.
3. The shareholder record date for the dividend.  The earliest possible shareholder record date is 20 days from the date that the Company makes a formal dividend declaration.
4. The ratio of future dividend payments for Class A and B shares.
5. Share purchase warrants issued to current common stockholders as an additional dividend benefit.

The above terms and structure will be finalized and publicly announced on Tuesday, November 2, 2010.

Corporate Update:

Cannabis Science will be providing guidance on its key areas of future business development with primary focus on:

1. Investigative New Drug Applications to the FDA for critical ailments.
2. Over the Counter Medicines
3. Laboratory for formulation applications, testing and FDA trials.
4. Current progress on its Rockbrook Inc. Commercialization Agreement
5. Strategic partnerships, acquisitions and joint ventures.
6. Establish Cannabis Science clinics and hospitals for patient treatment.
7. New cannabis formulations and discoveries for research and development.

Prop 19:

The election is expected to be very close, so we also urge everyone, especially our shareholders from California, to vote Yes to Prop 19.

Cannabis Science Inc., Director & CFO, Richard Cowan, noted that, in addition to donating $1 million in support Prop 19, George Soros released an op-ed piece in the Wall Street Journal Tuesday, where Soros wrote, "Just as the process of repealing national alcohol prohibition began with individual states repealing their own prohibition laws, so individual states must now take the initiative with respect to repealing marijuana prohibition laws."

Richard Cowan, added, "We would like to thank www.Businessinsider.com for profiling Cannabis Science as their first pick in a list of stocks that will be favorably impacted by the success of California's Prop 19 election. However, we are more than prepared to continue under current laws and appreciate the support medical cannabis receives from sophisticated investors such as George Soros. Dr. Melamede and I have long advocated the complete legalization of cannabis for adults, but the company's current business plan does not depend on a change in the laws in the near future."

Dr. Robert Melamede, Cannabis Science Inc., President & CEO, stated, "These initiatives, and the selection of new public officials, will hasten the end of marijuana prohibition. As more people learn the truth about the remarkable health promoting properties of cannabis. Finally the needless human suffering imposed by prohibition on humanity, especially minorities, the sick, children and the elderly, will end."

About Cannabis Science, Inc.

Cannabis Science, Inc. is at the forefront of pharmaceutical grade medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. In sum, we are dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.

Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based drugs. Cannabis Science, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.

SOURCE Cannabis Science, Inc.